Various Types of Vehicle Insurance
Even if you’re not a car owner, you will have an idea of the basic types of vehicle insurance. Most of us know that there are full, third party and third party and theft car insurance policies. We’ll explain each kind of insurance and their advantages and limitations. This article will help you, in case you own a car or plan to get one soon, to find suitable insurance.
Various Types of Vehicle Insurance – Comprehensive Cover
If you’re paying for your car via a bank facility or hire purchase, you must have this kind of car insurance. That sort of insurance gives you the most peace of mind as a car owner. Whether you lose your car in a fire or to a carjacker or it gets damaged in an accident, your insurer will compensate you. You will also not need to go back into your pocket if you injure yourself or a third party in a road accident involving the insured vehicle.
In addition to this, some kinds of comprehensive car insurance will pay for the replacement of some car parts. Others will go as far as cater for the towing charges in case you can’t drive your car to the repair shop. Should your vehicle sustain extensive damage and require a few days in the garage, some will pay for rental cars for you to use in the interim. These extras vary from provider to provider so you need to find out what exactly the benefits are from each insurer.
Various Types of Vehicle Insurance – Third Party Only Cover
This kind of car insurance only pays out when your vehicle causes damage or injury to other parties. In the event of an accident, your policy will cater for repairs to the other person’s car. Also, it will cover any injuries they may have. If there were other passengers in your vehicles, they would be catered for as well. But you will have to provide for yourself and your cars from your pocket. Should your cars cause damage to another person’s property, your insurer will cover the cost of repair. This cover is the most necessary in car insurance. Of course, it attracts buyers with its low premiums. However, if you are financing the car through a bank or any other institution, you can’t have the third party only cover.
Various Types of Vehicle Insurance – Third Party, Fire and Theft
This cover is wider than just third party. The insurance covers a broader range of risks. The insurance caters for the expenses associated with other parties in an accident. This class of car insurance covers damage caused by fire as well. It also replaces your vehicle should it get stolen. Even this kind of protection is not allowed if you depend on a bank or other institution to finance the purchase of your car.
Various Types of Vehicle Insurance – What to consider when choosing
So, in summary, the main determining factors for most people shopping for car insurance are the:
- Size of the premiums
- Extent of risk covered
- Extras that come with the cover
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