Types of Car Insurance Cover

Understanding the types of car insurance cover before you shop for a policy will help you to make a decision with confidence. The type of car insurance cover that best suits your needs depends upon the car you drive, your driving routines and your financial circumstances. To avoid spending too much money on unnecessary cover, or spending too little and ending up without adequate financial protection, take a moment to review the types of car insurance cover.

The more you know about the types of car insurance cover information, the better equipped you will be to buy and maintain the proper level of coverage. If you've held the same policy for years, review your cover to determine whether you might be saving money by eliminating certain benefits or features. Alternatively, you may decide to extend your cover if you fear that your current car insurance policy leaves you underinsured.

Compulsory Car Insurance Cover

All drivers in the UK must carry a minimum of third party car insurance cover. This type of cover protects you financially against claims made by drivers, passengers, or other individuals who suffer injuries or damage to property as a result of an accident that you caused. Any legitimate car insurance policy that you purchase in the UK, from the most basic to the most comprehensive, includes third party cover.

Third party only car insurance cover is generally the cheapest level of protection available. However, a third party only policy does not pay out for accidental damages to your own vehicle. If your car is stolen, damaged during a break in or burned in a fire or explosion, third party only policies do not cover these losses. Third party only cover is appropriate if you are very cost conscious and you own an older vehicle that would likely be written off by the insurer in the event of a claim.

Commercial vehicle insurance is compulsory for businesses that utilise one or more vehicles as part of their operations. A commercial vehicle policy may cover a delivery van, one taxi or a fleet of taxis, or a company executive car. Commercial vehicle policies protect a company against the consequences of third party claims that could threaten the company's financial assets.

Optional Car Insurance Coverage

Although a cheap third party only policy meets the legal requirements for drivers in the UK, many car owners choose a higher level of financial protection in order to secure their investment. Third party fire and theft is an intermediate level of car insurance cover that pays out to repair or replace a vehicle if it is damaged in a fire or explosion, or if it is struck by lightning. Third party fire and theft cover also recompenses the policyholder for all or part of the value of the car if it is stolen.

Out of all the types of car insurance cover, fully comprehensive car insurance is the only level of protection that pays out to repair or replace a vehicle if it is damaged in an accident. Comprehensive coverage also includes fire, explosions, lightning or theft. Many comprehensive policies cover the windscreen, mirrors and other glass structures in a vehicle. Some comprehensive policies cover a percentage of the value of the audio equipment or other property inside the car if the vehicle is damaged or destroyed in an accident or stolen.

In addition to the standard types of car insurance cover, you may extend the value of a policy with optional features such as breakdown cover, legal expenses cover and personal accident protection. Breakdown coverage pays out for the costs of towing and spare tyres after a break down. Legal expenses coverage provides financial support for pursuing claims related to an accident, and personal accident protection covers serious injuries or the loss of physical function after an accident.

Choosing the Best Type of Cover

Car insurance providers and brokers all have opinions about which type of car insurance cover is the best for their customers. Ultimately, however, your choice of car insurance cover is a personal one. When you're considering car insurance, think about how often you drive, your reasons for driving, the type of vehicle you own and the amount of money you can afford to spend. The policy you choose should address your needs and risks without exceeding your budget.

Comparing quotes on the different types of car insurance cover will demonstrate how the types of car insurance cover affects the cost of a policy. Although you can save money in the short term by buying the cheapest type of cover, you may find yourself paying a large sum of money out of pocket if you have to repair or replace the vehicle after an accident or theft. The policy you choose give you the security you need to feel confident and comfortable on the road.

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