Choosing the right vehicle insurance
We all have to have vehicle insurance to be able to drive legally, but how do you know whether you are choosing the right type of vehicle insurance. Many of us are blinded and confused by all the technical jargon used by insurance companies and as long as we can afford the monthly premium they are charging then we are happy to pay. What if you were being over charged by having an insurance package that you may not necessarily need? By understanding what insurance package is right for you, you could save yourself a fortune on premiums.
As far as insurance packages go, there are three main types of vehicle insurance in the UK. When you are searching for insurance it is important to know which one of the following insurance type’s best suits you, your vehicle and your budget.
- Third party
- Third party fire and theft
Being the most basic insurance package, third party is something that needs to be carefully considered. Although it is the cheapest option, the reason for this is the limited cover it offers. Third party insurance will only cover you for your liability to others. Should you have an accident and damage your own car, you will not be covered for any repairs or payouts should your vehicle be written off.
This type of insurance should really only be considered if your car is completely worthless to you. If your vehicle is incredibly old, has no finance or money owing on it and not likely to be repaired if it was damaged then this could be a cheaper option for you to take. However, be wary of using this option as a money saving option on a newer car as it could end up costing you dearly.
Third party fire and theft
Third party fire and theft is the next level up from third party. As well as including liability cover for others, this also includes cover for your vehicle if it is stolen, suffers an attempted theft or is damaged by fire. Again this is a relatively cheaper option of insurance but as above it is only advisable for an older vehicle with little or no value. This type of insurance will still not cover you for damage to your vehicle as a result of an accident.
Comprehensive is by far the most common type of insurance. This type of cover will not only cover your liabilities to others but also any damage to your own vehicle. However, comprehensive cover is where most confusion is caused. Comprehensive cover is recommended for a car that has a value, is on finance or where you know you could not afford the repairs if an accident should happen. Comprehensive cover gives you a far greater peace of mind.
The basic comprehensive cover will cover all of the above but as a rule it does not cover break downs, courtesy cars and general vehicle wear and tear, these are added extras. Some insurance companies will automatically quote you with these added extras included without clearly explaining that they are going to increase your premium. They tend to sell this as a package and we accept that.
However, you can save yourself a considerable amount of money if you start to knock off some of the extras that are either not necessary or you can get cheaper elsewhere. For example, breakdown cover could add as much as £70 to you premium per year yet you could find your own breakdown cover from as little as £30 per year. When getting insurance quotes it is a good idea to ask for quotes on packages with and without the extras so that you can make an informed choice.