A car insurance policy protects the vehicle owner from financial liability in case of road accidents and other misfortune events, such as thefts and fires. The exact insurance coverage will depend on the policy you choose. There are three basic types of vehicle insurance coverage. Let’s take a look at what they offer and which plan would be the most suitable for your needs.
Third-Party Car Insurance
The third-party motor policy is the first option available for everyone considering insuring their vehicle. As the name suggests, this plan will have you covered in case of third-party property damage and injury. If you have participated in a road accident, this policy offers financial protection for any injuries or damage that the third party suffered. While this is the most affordable policy out there, it is worth noting that it only provides essential protection.
Why you should choose this plan: A third-party motor policy is an excellent idea for drivers who don’t spend a lot of time in their vehicles.
Third-Party, Theft, and Fire Car Insurance
This car insurance policy is a bit more complicated since it covers multiple possible events. Here is how this insurance plan will protect you:
- Third-party property damage and injuries – if you participate in a road accident, any liability for the third parties involved will be covered by the plan.
- Fire – if there is a fire that you are not responsible for, and your vehicle suffers damage, this policy will protect you.
- Theft – vehicle thefts are quite common, so this policy can provide peace of mind. It offers financial protection if someone steals your vehicle.
While it is not as comprehensive, this plan offers more advanced protection than the basic third-party policy.
Why you should choose this plan: It is an excellent option for those who would like protection against theft and fire, but still don’t want the most expensive plan.
Comprehensive Car Insurance
As the word suggests, this plan is comprehensive and offers full protection to vehicle owners. If you go with this policy, it will include both the third parties and your own vehicle involved in the accident. You can also ask for compensation for the time when you didn’t use your car. It is worth noting that a comprehensive motor policy offers financial protection in case of thefts and fires. The rule that the fire should be accidental and you shouldn’t be responsible for the robbery still applies. Why you should choose this plan: It offers total protection, which makes it great for drivers who use their car every day.
Which Car Insurance Is the Best for You?
While it ultimately depends on your preferences, the comprehensive car insurance offers complete protection. It is worth noting that you can customize your policy by utilizing additional covers. Those include the following premiums:
- Personal accidents – it covers injuries of you or the passengers.
- Assessed repair time compensation – if you can’t use your vehicle for a while, you might be entitled to compensation.
- Windscreen – your windshield might break for no apparent reason. If that happens and it wasn’t caused by a road accident, this add-on will offer financial protection.
- Legal liability of and to passengers – a third party might sue you for injuries caused by the passenger in your vehicle. Alternatively, your passenger might sue you for the damages they suffered in the accident. These offer financial protection if that happens.
- Flood – if your vehicle suffers damage due to a flood, you will enjoy financial protection.