There are three types of car insurance, beginning with the most affordable and least popular:
Third Party
This is the minimum insurance requirement by law. All drivers must have at least this type of policy. This insurance covers injury or damage to another person’s vehicle if you are involved in an accident. This type of insurance doesn’t cover any personal injuries or losses.
Fire, Third Party, and Theft
This policy is an additional step beyond basic third-party coverage. You can file a claim if your car is stolen, not recovered, or damaged by fire. In the event of an accident that is attributed to you, you’ll still be covered for damage or injury to another person.
Comprehensive
Comprehensive insurance allows you to claim for damage to your vehicle even if it was damaged by someone else. Comprehensive insurance also covers third party, fire and theft. Comprehensive coverage usually allows you to drive another person’s car with their permission. However, you should make sure you check your policy for specific details.
Extra Features
These are the most basic types of insurance. However, policies from different insurers may offer additional features that you should consider when choosing whom to insure. Comprehensive policies can include quite a few extras. It is important to remember that there is no such thing as a ‘freebie’ when comparing policies. You might be able get a cheaper policy if you don’t require a particular feature.
No Claims Bonus
Your premiums will decrease if your insurance policy includes a No Claim Bonus or No Claim Discount. This is to show that you are not a high risk to the company. The discount will increase year after year, until it reaches the maximum limit. This can be anywhere from 60-70% depending upon your insurer. Your bonus will be reduced if you file a claim. This can happen even if you do not make a claim. This is a great option if your maximum discount has been reached. Your bonus will remain intact no matter what happens. This is a topic that many insurance companies will let you transfer your existing discount from another company. If you were to lose your discount, it would be unlikely that you’d switch insurance companies.
Named Drivers
Named drivers can be added to your policy so they are covered while driving your car. Parents often add their children, who just passed their driving test, to their insurance policies. This is often the best and most economical way to insure a new driver in today’s insurance market.
Courtesy Car
This feature allows you to use a rental car for repairs or maintenance until your vehicle is repaired.
Windscreen replacement
Broken windscreens can usually be replaced free of charge under roadside assistance. However, if you don’t have this type of coverage or your windscreens are not included, you should make sure to get a replacement free from your insurance.
Audio equipment
You should ensure that your policy covers expensive equipment in your car. There are limits to the amount of audio equipment that policies will cover.
Roadside Assistance
Many policies include some form of recovery and breakdown cover, or offer discounts for such coverage. You may save money if you have already purchased breakdown coverage.