Tuesday, April 28, 2009

What Type of Car Insurance Should You Choose?

What Type of Car Insurance Should You Choose?

It is a legal requirement in the UK that before setting out on public roads a driver and their vehicle must be insured. The absolute minimum level of cover required is third party, although there are other types of cover available and your personal circumstances will determine which one is best value for you.

For example, a young driver who owns a relatively inexpensive car may opt for affordable cover such as third party, whereas an affluent older driver with a prestige vehicle is more likely to opt for fully comprehensive cover.

Third party car insurance is usually the cheapest car insurance and typically will cover any other person involved in an accident, including passengers in the insured vehicle but not the insured person; and damage to other property, including to other vehicles, but not to the insured vehicle

However, if you own an expensive car and choose third party cover it could prove costly if you are involved in an accident for which you are deemed to be responsible. In such circumstances the cost of repairs to your vehicle will be borne entirely by you. Conversely, if your vehicle is damaged in an accident and someone else is found to be culpable then you will be able to claim the cost of repair from their insurers.

So, although third party insurance is far cheaper there is also a lot more risk involved for the insured driver. However, young people - especially those that have just passed their driving test - face steep car insurance premiums due to their age and relative inexperience behind the wheel. As such, third party insurance is a more affordable option especially if their car is not particularly valuable.

Another form of cheap car insurance - but one which offers slightly more cover - is third party, fire and theft. This works in exactly the same way as third party insurance except that if your vehicle is stolen or damaged in a fire, the cost of replacement or repair will also be included in the cover.

The type of car insurance that offers the most cover is known as fully comprehensive. Under such a policy everything that is provided under third party, fire and theft is included plus there is also a great deal more cover. Typically, comprehensive policies cover accidental damage to the insured person's vehicle, regardless of who is at fault and a host of other benefits that will vary according to the insurer offering the cover.

Indeed, because so much cover is offered with a fully comprehensive car insurance policy it is therefore the most expensive. Most people who own a brand new or nearly new vehicle will usually opt for comprehensive cover to insure their valuable asset; and many often believe that the extra premium cost is justified.

So, when it comes to deciding whether to opt for cheap car insurance or one that is more expensive, often it will be entirely personal choice. However, just remember that you must purchase it before driving on public roads.

Andrew Regan writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.