Types Of Cover
There are three basic types of insurance cover.
Third Party.
This is the legal minimum insurance level. This will cover costs to another person or property in the event you have an accident which is your fault. If your car is stolen or catches fire, any loss or damage will not be covered and you will have to take the loss. If you are driving a very cheap old banger, there is something to be said for Third Party Only cover, but if you wouldn't be able to afford to get another car in the event you lose yours, Third Party Only cover isn't really a very good idea - it can also be quite difficult to obtain.
Third Party, Fire and Theft.
This is the next stage up from Third Party Only. In addition to the cover to other people or property, your vehicle is covered in the event it is stolen or catches fire. This means you should be able to afford to replace your car in the event the worst happens - however, bear in mind that this cover does NOT cover damage or loss to your car in the event of an accident which is your fault or if your car is vandalised. However, this level of cover can result in a considerable saving for young drivers over the higher forms of cover.
Comprehensive.
This level of insurance includes the cover described in Third Party, Fire and Theft and also includes your own vehicle in the event of an accident or vandalism. Comprehensive policies vary enormously from policy to policy and company to company. Other benefits can include items stolen from your vehicle, medical expenses and personal accident protection. These policies generally offer the best cover, but it is important to read the policy carefully to be sure you know of any limitations and exclusions. Sometimes these policies will make certain stipulations such as the car must be garaged overnight - make sure you understand and conform to these or your cover may be void. This is the most expensive cover to buy.
In addition to the above you can also obtain Uninsured Loss Recovery which provides legal expense costs to pursue a guilty third party for your uninsured losses as well as costs to pursue a personal injury claim. This can be useful to Third Party, Fire and Theft policy holders. You can also obtain Motorists' Legal Protection which covers the cost of defending court actions arising from incidents on the road.
