Car Insurance Policies

The only times you are exempted from purchasing car insurance are if you have an official Statutory Off Road Notice (SORN), if your car is stolen or has been scrapped or exported and the due notifications documented. The other insurance exemption is for cars that have not been driven on a public road since February 1, 1998. If you do not fall into any of the above categories, you should not drive an uninsured car. Not only do you risk getting a ticket, failure to produce an insurance certificate or cover note can lead to your car being confiscated by the police.

There are many car insurance policies to choose from so finding a cover will not be a problem. The only hard work may be in choosing the right policy for you. Thus, it is important to know the different types of policies available so you can make an informed choice when buying one. There are three main types of car insurance policies: third party insurance, third party, fire and theft insurance and comprehensive insurance.

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Third party insurance

Third party insurance is the minimum amount of insurance a motorist is required to have by law. This type of insurance only covers damage caused to another driver’s vehicle or property when your car is involved in an accident. This can be repairs for hitting the other car, compensation for hitting someone’s house or other property. In a nutshell, it covers all forms of damages occasioned by your car, following your behavior on the road or that of your passenger (s). Third party insurance does not cover damages to your car. You would have to meet these out-of-pocket.

Third party, fire and theft insurance

This type of coverage ensures that your car is protected from all third party claims (as described above). In addition, it protects your car from damage resulting from fire. Should your car be destroyed in an inferno, the insurance company will compensate you fully if you had purchased this policy. It also covers your car from theft, meaning should you lose your car to thieves the insurer will compensate or replace it.

Comprehensive insurance

The most extensive of the three policies, comprehensive coverage protects your car from third party claims, fire, theft and malicious damage to your car. It pays for all repairs needed to get your car back into roadworthy status, regardless of the cause of accident. Many insurers provide additional coverage to clients who purchase comprehensive insurance. In most insurance companies, this additional cover is offered at no extra charge. However, it is important to confirm with an insurer on whether this is just a bonus cover or you would have to pay for it. This could make a big difference in the quality of coverage you are getting and the amount of money you are spending on it.

Bonus cover offered in different companies includes:

- Cover for legal and medical costs incurred following an accident
- Cover for personal belongings stolen from the car or damaged in an accident.
- A limited amount in coverage for injuries sustained by self or family members in the car.
- Cover for death should you die in an accident involving the car. This can also extend to cover members of your family and perhaps any passengers who die following an accident involving your car.

The cost varies for each of the above policies, with comprehensive coverage costing more. When choosing a policy, it is important to ensure that it meets your driving needs. If for instance you have an old car, it might be necessary to do away with the comprehensive coverage and remain with third party only. If your car is brand new and a sports car for that matter, you will be better protected if you have comprehensive coverage.