Car Insurance
All UK drivers are required by law to take out a valid car insurance policy. Car insurance is one of the most costly aspects of driving, so it's a good idea to make sure you're getting the best deal possible on the right policy for you.
Car insurance cover comes in three basic forms. The type of cover you choose will affect your final premium.
1. Comprehensive Insurance
Comprehensive car insurance is the most expensive kind of car insurance because it covers any damage caused to your car in an accident that was your fault.
You will also be covered for damage caused to your car by someone else in the event that the individual's insurance can't be claimed on - for example, in a 'hit and run' accident when the driver cannot be traced.
Some comprehensive car insurance policies offer additional aspects of cover, including free windscreen replacement, roadside assistance, and even accommodation and transport if you are stranded as a result of damage to your car.
However, as with all insurance policies, it is important to note that additional features will increase the cost of your premium. As a result, only opt to include them on your policy if they are extras that are likely to be useful to you.
2. Third Party, Fire and Theft
This kind of policy is more comprehensive than third party insurance. Any damage you cause to another vehicle is still covered, but your car is also covered against theft or damage caused by fire.
Third party, fire and theft insurance is not much more expensive than third party, which makes it the most popular kind of policy because it gives better cover for little additional cost.
3. Third Party
This is the simplest and cheapest form of car insurance available. Third party cover basically means that if you cause an accident, any damage caused to someone else's vehicle will be covered. Your insurance company will pay the individual for the damage after the value of any excess that your policy requires you to pay.
It is important to know that third party insurance will not be cover damage to your own car and you will not be able to claim if your car is stolen.