Third Party Car Insurance

Third party car insurance is the most basic level of financial cover that you can buy for your car. Third party car insurance protects young drivers against the financial consequences of an accident. If you cause an accident in which other drivers, passengers or property owners are injured or lose property, third party car insurance will pay out to recompense these individuals for their losses. Third party car insurance does not pay out for your own losses or injuries.

Higher levels of car insurance, including third party fire and theft and comprehensive auto insurance, are available at a higher cost. When you're shopping for car insurance as a young driver, buying third party car insurance may seem like an effective strategy for saving money. However, when you weigh up the potential cost of paying for your own vehicle repair or buying a new car out of pocket, the extra money you spend for more comprehensive cover may seem well worth the cost.

Legal Requirements for Young Drivers

All drivers in the UK must carry a minimum of third party car insurance, according to the Road Traffic Act of 1988. Third party cover protects insured drivers against financial liabilities in the event of an accident. This basic level of car insurance also protects third parties against devastating financial losses if they are injured or lose a vehicle or other property in an accident that they did not cause. Driving without third party cover may result in severe fines and penalty points on your driving licence.

Young drivers must complete a 2 year probationary period after qualifying for a full licence. During this time, your licence may be revoked if you reach 6 or more points on your licence. Because driving uninsured may carry 6 to 8 points, you may lose your licence if you do not have the proper insurance. Once your licence has been revoked, you must apply for a provisional licence again and pass the theory and practical exams in order to regain your privileges.

With the cost of third party and comprehensive car coverage for young drivers so high, it may be tempting to drive without cover, or to have a parent carry the policy on the vehicle you own. However, the costs of driving without coverage, including the possibility that you will be held financially responsible for an accident, are much higher than the cost of insuring your automobile. If you own a vehicle, you may name your parent on the policy in order to save money, but as the registered keeper, you must be the regular policyholder, or your insurer may invalidate your coverage.

Third Party Car Insurance Benefits

When you carry third party cover, you may not receive any benefits from the policy as a driver. Only another party, such as a driver or passenger injured in an accident that was your fault, may receive a payout for bodily injury, vehicle damage or other property loss. Your own passengers may make a claim on your cover if they are injured in a collision that was your responsibility. However, you may not make a claim to receive benefits, unless your coverage includes benefits for solicitor's fees.

Third party coverage pays out if your automobile strikes a fence, garage or other external structure and damages the property. Your insurance also covers damages caused by a trailer or caravan attached to your vehicle. However, if your own automobile is damaged, your insurer will not pay out to repair or replace this asset. Your insurer also will not pay out if your auto is stolen.

This minimal form of protection gives you the amount of financial security required by law, with few or no extras. You may be surprised to learn that when you compare quotes from multiple insurers, third party car insurance does not offer the best value. Although you may pay more up front for comprehensive coverage, the value of the benefits you receive outweigh the extra cost.

If you buy a new auto on a loan, your lender will require that you buy comprehensive coverage for the purchase. Comprehensive policies pay out if your automobile is damaged in an accident, burned or stolen. Your windscreen, mirrors, and a portion of the value of the personal property in your automobile are also covered.

Rather than minimising the level of coverage you buy in order to save money, consider cutting your costs by buying a model that's cheap to insure. A low risk, low powered automobile is cheaper to insure than a fast, high powered, modified sports model. Housing your auto in a locked garage and investing in insurer-approved security devices, such as trackers and immobilisers, will help you to achieve lower premiums on a comprehensive plan. Rather than limiting yourself to third party car insurance, consider a policy that will allow you to drive with greater confidence.

" Rather than calling around to different insurance companies, this site let me compare car policies for my son instantly. "

Ruby T
London UK