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Types of Car Insurance

Posted on April 12, 2012 ยท Posted in Insurance Guides

If you are considering looking for multi car insurance then it is comforting to know that for each vehicle included on your policy, you can get one of three different types of cover.

Third party

If you are going to drive on any public roads in the United Kingdom then third party insurance is the most basic level of insurance you can have to drive legally on the roads. Third party insurance covers any damage or injury you may cause to third parties on the road, but means that all other costs relating to the damage sustained by you or your vehicle, or if it is stolen or damaged by fire, are not covered and the policyholder will have to meet the costs of any repairs to their vehicle in full.

Third party fire and theft

Third party fire and theft is an insurance policy that not only offers the same level of cover as third party insurance in terms of covering accidents to other people and vehicles, but also offers additional cover to indemnify the policyholder should their vehicle be stolen or damaged through fire. This means that should you opt for this level of cover, you will not only receive the same level of third party cover outlined above, but you will also receive compensation from your insurer should your vehicle be stolen or damaged by fire.

Comprehensive

The final form of cover available in the UK is comprehensive insurance. As the name suggests, comprehensive insurance offers an all-encompassing level of cover for drivers. Not only does this type of cover insure you for injuries and damage caused to third parties, and the loss or damage to your vehicle caused by fire and theft, it also covers repairs to your vehicle if you are involved in an accident. In addition, comprehensive cover can also offer many other benefits to the policyholder including breakdown recovery service included in the price, free windscreen replacement should you get a chip in your windscreen as well as covering damage to personal belongings in the car.

In most multi car insurance policies, each car in the policy is afforded the same level of cover. Obviously, third party and third party fire and theft policies tend to be cheaper, but they do not offer the same level of cover, additional bonuses to the policyholder or collective peace of mind as a comprehensive policy.