As you drive your vehicle, you need to feel a sense of protection in case of any outcome. That is why vehicle insurance companies are existent. Car insurance companies offer variety of relief benefits to their clients depending on the insured cover. If your vehicle isn’t insured under a beneficial coverage plan, you might have to settle for damages in an event of an accident or any other calamity.
There are three major types of car insurance:
- Third party insurance
- Third Party fire and theft insurance
- Comprehensive insurance
Third Party Insurance
The law requires every vehicle to be insured before driving on the road. This type of insurance offers the most basic benefits of protection in case of an accident (minimum insurance level required by law). It insures for:
- Damage to some else’s car /property
- Injury to your passengers during an accident
- Injury caused to other road users
A third party insurance won’t be accountable for any safety to you in case of an accident. If you are sure that your car is not/ won’t face serious risks, a third party insurance can be of advantage to you.
Third Party Fire and Theft Insurance
This offers you one of the most beneficial coverage to your vehicle. This insurance policy provides coverage for specific and few risks that are likely to occur. It provides third party privileges in addition to:
- Fire damage on the vehicle
- Theft and damages incurred to the vehicle during the process
After paying any conceded compulsory and voluntary excess, the insurance company will incur all the damage costs. For better acquaintance, it’s better to go over the insurance company policies before signing an agreement.
Comprehensive Vehicle Insurance
Provides privileges that complete protection for your car. The comprehensive insurance covers for third party damages in extension to:
- Emergency medical bill payments
- Costs arising from loss or damage done to the car/ it’s parts
With comprehensive insurance, there are extras you can pay for to insulate you in unavoidable situations which are not covered as standard.
Supplementary Insurance Covers
1. Personal accident cover. Often constituted with comprehensive policies. This offer’s compensation if you are extremely injured/ killed in an accident.
2. Motor legal protection. If you want take legal action against another driver/ legal protection, this cover takes care of the expenses.
3. Windscreen cover. Offers compensation for any damages that affect your car’s windscreen.
4. Lost keys cover. Compensates you in an event where you misplace your car keys.
There are more extra cover policies to the ones mentioned depending with the vehicle insurance company you are registered to.
What Affects the cost of Car Insurance
1. Age. Most insurance companies tend to charge higher rates to young drivers. This is because young drives are perceived to be more reckless than their older counterparts.
2. Insurance Company. Different insurance companies charge varied rates to their clients.
3. Where you live. A vehicle insurance company will charge you more if the location you are in poses massive risk to you, your car and other road users.
4. Worth and model of your car. Vehicle owners with costlier cars pay much insurance cover rates than those whose cars are cheaper. Moreover, car models which are more powerful have higher cost rates.
5. Previous driving experience. Car owners who have any past insolvency cases involving their driving background are charged higher rates.
When you are looking for an insurance company for your vehicle, do a wide research on the market and carefully check policy details of various groups before coming to a consensus.