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Choosing the Right Car Insurance Policy

Types of Insurance

Third party only
Third party fire and theft

Comprehensive
No claims bonus
Legal cover
Breakdown
Courtesy car
Vehicle excess

 

Third party only

This is the minimum level of insurance cover the law requires you to have to drive a car in the UK. It does not cover any damage to your own vehicle – only your liabilities to other parties.

If you crash into someone and you’re to blame then your insurance will cover the damage to the other driver's car. You’re not covered if the accident was your fault or if your vehicle was stolen or damaged by fire.

 

Third party fire and theft

In addition to third party cover, this will insure your own vehicle against theft or damage caused by fire.

 

Comprehensive

Comprehensive cover will provide you with the same cover as fire and theft and third party only, as well as accidental and malicious damage made to your own vehicle.

 

Protected and guaranteed no claims bonus

For each year of claim-free motoring, drivers get a ‘no claims’ bonus discount which can lower premiums. Motorists can protect this benefit for an additional price when they have a four-year bonus.

When protected, drivers are allowed up to two claims over a three-year period before they lose their ‘no claims’ entitlement.

 

Legal cover

For an additional charge you can get legal cover, which will cover you through your insurance if you’re involved in a legal suit. Always find out how much legal cover your policy entitles you to.

 

Breakdown

Many insurance companies offer breakdown cover at an additional price. Always check the extra cost and ensure the cover is adequate for your needs.  If you already have breakdown cover you may wish to add this to your policy at a later date.  

 

Courtesy car

If your car is off the road as a result of an accident, some insurance companies will provide you with a courtesy car. Most fully comprehensive policies offer a courtesy car at no extra cost. The garage carrying out the work on your car will usually provide you with a courtesy car while your vehicle is being fixed.

 

Vehicle excess

An excess is the amount you’ll have to pay in the event of a claim. Young drivers normally have a higher excess as part of their policy due to the high chance of a claim.  By increasing the excess on your policy, your premium may be lowered.