Types of Car Insurance

A review of the types of car insurance will help you to make an educated choice when you're buying cover for your car. Buying car insurance as a young, newly qualified or learner driver can be challenging. In addition to sorting through the different types of car insurance, you must find a policy that doesn't stretch your budget. Because insurance companies consider young drivers to be a high risk, premiums are often higher. However, affordable car insurance is available if you compare quotes from multiple companies.

If you're searching for ways to cut the cost of car insurance, it may be tempting to buy a policy that offers minimal financial protection in order to save money. When you compare the cost of your car insurance premium to the cost of paying for an expensive vehicle repair out of pocket, however, you may decide that buying a more comprehensive policy is worth the extra cost. Explore the basic types of car insurance and optional extras to find a level of protection that's suited to your needs as a young driver.

Third Party Only Protection

The Road Traffic Act of 1988 declared that all UK drivers must carry a minimum level of car insurance in order to drive legally. Third party car insurance, the most basic level of protection, meets this legal requirement. A third party policy pays out if you are responsible for an accident in which other drivers, passengers or property owners are injured or suffer property damage.

Some third party car insurance policies cover your legal expenses as well as third party claims, depending on your level of cover. Although a cheap third party policy may seem highly attractive if you're on a tight budget, bear in mind that this level of protection does not pay out to repair or replace your car if it is damaged in an accident or fire, or if the car is stolen. If you carry only third party cover and you cause an accident that damages your vehicle, you will be required to pay for any of your own costs out of pocket.

Third Party Fire and Theft

Third party fire and theft policies offer a higher level of protection than basic third party cover provides. For extremely cost conscious young drivers, a third party fire and theft policy offers more extensive financial security at a slightly higher cost. You may even find that some insurance companies charge less for third party fire and theft policies than for basic third party cover in an effort to discourage drivers from buying only the minimum level of car insurance.

Even if you own an older car, your vehicle represents a source of transport and a means of independence. Third party fire and theft policies pay out to replace your automobile if it is damaged or destroyed in a fire, explosion or break in, or if the car is stolen. A third party fire and theft policy may also cover the audio equipment in your automobile, as these devices are often the targets of car thieves.

Comprehensive Car Insurance

Comprehensive car insurance is the highest level of financial protection you can purchase for your vehicle. If your car is damaged or destroyed in an accident, fire, explosion or break in, or if the car is stolen, your policy will pay out for the replacement or repair of the automobile. A comprehensive policy often includes coverage for the windscreen and mirrors, and for a percentage of the value of the personal property inside the car.

When you buy a new car on a loan, the financial institution that lends you the money will generally require that you carry comprehensive car insurance to protect the investment. Once you've repaid the loan, you may reduce your level of cover. However, you may be surprised to find that comprehensive car insurance is not always significantly more expensive than third party fire and theft policies. Comprehensive car insurance gives you greater financial security and peace of mind, which may give you the extra confidence that a young driver needs.

As a young driver, you can choose from a number of optional extras that will enhance the value of comprehensive car insurance. Breakdown insurance is not included in most standard policies, but many young drivers find this optional feature quite valuable. If your car breaks down on the road or motorways, breakdown cover will pay out for roadside repair, towing or spare tyres.

The longer you drive and the more carefully you observe the rules of the road, the cheaper your car insurance premium will be. Out of the types of car insurance you have to choose from, select the level of protection that will give you the financial security you need. Look for a reliable provider that specialises in covering young drivers like you.

" This site taught me a lot about shopping for my first insurance policy, and helped make it easy to get some quotes too. "

Oliver D
Wales UK