Navigating the world of car insurance can be intimidating for first-time car owners. There are so many different options out there, and it can be hard to work out what works best for your needs.
One popular car insurance definition states that car insurance is basically a contract between you and your insurer that protects you against financial loss if you claim in the event of an incident.
But there are a lot of nuances that must be explored to truly understand what this protection entails.
Fully comprehensive or comprehensive, third party, and third party fire and theft policies are all viable options when it comes to car insurance, but understanding the differences between them is key to making an informed decision.
Each type of cover comes with its own advantages and disadvantages in terms of cost and cover level. Carefully researching each option will help ensure you make the right choice when looking for a policy as a first-time owner.
Different types of car insurance
There are a few different types of car insurance products out there, but they can broadly be divided into three categories – comprehensive or fully comprehensive car insurance, third-party car insurance, or third party fire and theft car insurance.
Comprehensive and fully comprehensive car insurance are often used interchangeably to describe a very similar product. Comprehensive or fully comprehensive car insurance generally covers any damage done to your car and/ or another person’s property in the event of an incident. Also, both policies usually offer protection against fire and theft. Fully comprehensive policies may also come with additional features like glass protection.
Third party car insurance is the minimum level of insurance available and it’s also the minimum required by law. It provides cover for when your car damages someone else’s property or if someone else is hurt as a result of an accident involving your car. This type of policy does not provide any cover for yourself or your own property, however.
Third-party fire and theft is similar to third-party car insurance but also gives additional cover for when your car itself is damaged due to both accidental and criminal fire damage as well as theft. Again this would not cover you; it only covers the cost of repairing or replacing your own car in these circumstances.
There is also a special type of insurance, often referred to as short term or temporary car insurance which can last anywhere from 60 minutes to 28 days. It’s designed to offer comprehensive cover with some exclusions and it works well if you’re still trying to decide what the best annual policy is for you personally.
Benefits of Fully Comprehensive Car Insurance
There are several benefits to having fully comprehensive car insurance. For a start, it offers cover for theft, vandalism, and natural disasters. This means that if a person’s car is stolen, vandalised, or affected by adverse weather conditions, the cost of repairs or replacement could be covered by their insurer.
Unlike third-party insurance, a fully comprehensive policy provides cover for yourself and your car in the event of an accident or incident. It also covers the third party involved if you’re at fault.
This means you won’t have to foot the whole bill to fix your car or buy a new one if it suffers serious damage as a result of an incident. A fully comprehensive policy, therefore, offers significant peace of mind as compared to a third-party insurance policy.
How to Choose the Right Insurance Policy
Choosing the right insurance policy for your needs can be a daunting task. You not only need to consider how much cover you’ll require, but also how to compare quotes to get the best deal. With so many options available, it’s important to understand exactly what kind of policy is best for you.
How Much Cover Do You Need?
When looking for an insurance policy, one of the most important questions to ask yourself is how much cover you’ll need. The amount of cover you choose depends on a variety of factors such as the value of your car and its age, as well as the types of risks that apply in your area.
Generally speaking, fully comprehensive car insurance will offer the most cover and peace of mind. For additional protection, you may want to opt for a breakdown cover package as well.
How to Choose the Right Policy for Your Needs
When choosing an insurance policy there are a few key factors that should be taken into account. It’s important not to just go with the cheapest option available; instead look at what each provider offers in terms of cover levels.
This will help ensure that they are able to meet your needs if something goes wrong down the line. Also, make sure that any additional features included within the policy such as breakdown cover or legal expenses are suitable for your needs too.
How to Compare Insurance Quotes
Once you’ve decided which type of policy is right for you, it’s time to start comparing quotes from different providers. The easiest way to do this is by using comparison websites like GoCompare or ComparetheMarket which allow you to easily compare quotes side by side.
Alternatively, if you prefer a more hands-on approach, you can get quotes directly from insurers by filling out their online forms with your details and requirements. This method may take longer but can often result in better deals since not all insurers are on the comparison websites.
Advice On How To Save Money On Car Insurance Premiums
There are several ways you can save money on your car insurance premium. Here are some ideas you could explore:
- Park your car somewhere safe overnight, like your garage or driveway rather than on the street
- Get a black box policy that tracks your driving and rewards good habits
- Increase your voluntary excess when you sign up to lower your premium; but make sure you can actually afford it
- Consider multiple car policies where you insure several cars under the same policy for a discount
These are just some ideas you could try out to get you started. But, there are lots of other ways you could lower your premium too. Make sure to shop around to find the best deal.
The Importance of Comprehensive Car Insurance
Having fully comprehensive car insurance in place is a great way to protect your car if an accident or incident occurs. A fully comprehensive policy means the costs associated with repairing your car will likely be covered by your insurer in the event of a claim.
Not having this policy in place means you have to foot the bill for your own car repairs. This can often be high. Or, if your car is written off, you’ll likely have to find the money to buy a new car. This is where a fully comprehensive policy becomes a much more stress-free option as compared to third party car insurance.
