In UK it is necessary to have car insurance to be able to drive it unless you’re not using your car or have
registered your car to SORN. There are different types of insurance that differ policy to policy. Now it is
up to you to decide what level of cover you want and with insurer you want to work with.
- Third party insurance
- Third party, fire and theft (TPFT)
- Comprehensive insurance
Third Party Insurance
What exactly is third party insurance? What does it cover?
This is the most simplest type of car insurance and it is the least compulsion when it comes to insurance
legally. This type of car insurance will not cover any damage done to your car or to you. however, it does
fund for any type of damage done to a third party.
Some of the things that it covers are:
- Medical bill for the injury caused to other people or even animals.
- If there’s any damage done to the other car, it is covered by this insurance.
- Even if a passenger sitting in your car suffers injury when you’re at fault, this insurance covers it.
- Accidents that are your fault.
Although it won’t take responsibility or cover if your car is lost.
Third Party, fire and Theft
This is similar to third party insurance but has some additional coverage provided.
In third party, as mentioned above any damage or injury that you suffer with is not covered. However, to
a great extent TPFT covers it.
Along with all coverage provided by third party, it also covers:
- Damage that comes to your car by fire or if someone steals your car.
- Injury that comes to you due to theft or fire.
Although this is a very cheap insurance policy but all insurers see the risk before coming up with a price.
So if you’re young, you’re usually seen as high risk thus this insurance could also prove to be very
expensive for you, sometimes even more expensive then comprehensive policy. Also due to its low
price, it is not a common policy provided by every insurer.
Comprehensive Policy
Just as the name suggests, this policy covers everything. It also includes TPFT and can also cover any
sort of damage done to your car.
Some insurers also supply cover for things like windscreen, windows, personal belongings, medical bills
(obviously to a certain extent) etc.
There are different insurers who have the same policy with different features and benefits. Some
generally include the above mentioned benefits where as some have additional price for that. So before
you sign yourself up, it is necessary that you overlook through every point, discuss every situation with
your insurer so that you know it has everything up to your expectations.
What is compulsory and voluntary excesses?
Compulsory excesses
This amount is decided by the insurer and youve to pay it so that you can opt for a claim. The amount
certainly depends on many different factors such as age and for example you’re young, this amount
could be high because the risk involved is more, same with if you own a relatively high priced car, this
amount could be high too.
Voluntary excesses:
This is amount that you pay on your own will. If you increase this amount, chances are that the total cost
of your insurance could actually be reduced. However, ofcourse there’s a certain range in which you can
pay. This amount also depends on many different factors like age, vehicle type etc.
So for example the total amount of your compulsory and voluntary excesses is £200 and the total cost
for repair is £700. Then you’ll pay £200 where as the insurance company will pay the remaining £500.