What your vehicle insurance covers can vary hugely depending on what policy you have. Usually, car insurance covers your car for any damage caused in an accident or crash, whether to your vehicle or another, plus damage to the property of other drivers, and finally personal injury.

It can equally be extended to cover breakdown costs, medical assistance that may be required and theft or damage to personal belongings stored in the car. The main types of car insurance are known as ‘Third Party’, ‘Third party, Fire and Theft’, and ‘Comprehensive’. We’ll now explain what each one of those means in turn.

Types of Car Insurance
Comprehensive Car Insurance
Comprehensive car insurance is largely thought of as the best level of cover. It covers not only damage to your own vehicle but also any damage suffered by others, and from any cause including accident, fire and theft.



This is a better standard of protection than ‘Third Party’ or ‘Third Party, Fire and other Theft’ car insurance.

One thing to watch out for though is that Comprehensive car insurance often contains a lot of different clauses and not all the policies are the same. For example, some require the policyholder to be driving the vehicle for a claim to be valid, while others do not.

That’s why it is so imperative to thoroughly read the terms and conditions of your insurance policy, so you’re fully aware of what it includes and what it doesn’t include.

Third Party Car Insurance
Third party car insurance is the lowest level offered and covers damage caused by you or one of your passengers to other drivers and their vehicles, as well as objects such as lampposts and walls. This type of insurance, does not cover the cost of damage to your own vehicle meaning you’ll have to pay for any damage you want to repair.

Third Party, Fire and Theft Car Insurance
The Third Party, Fire and Theft policy is the same as Third Party cover, except it also pays to replace or repair your vehicle if it is stolen or damaged in a fire. It is often taken out by those that only want Third Party insurance (i.e. they don’t want to cover damage to their own vehicle), but they want a greater layer of protection in the situation of accidents or incidents out of their control.

If your vehicle is relatively cheap or old, it’s a good idea to look into Third Party, Fire and Theft Insurance as it is often a lot cheaper than fully comprehensive cover.

Factors affecting the cost of car insurance
Changes to your premium
Your insurance ‘premium’ (the amount you pay for your insurance each month/ year) is dependent upon many different things, including your history as a driver, the car and its level of power and your own personal circumstances. If you are a more experienced driver, and you live in a safe area with a sensible ride, your premium will likely be relatively cheap.

Excess
Read More:https://automobileglobe.com/what-is-the-best-kind-insurance/