What is car insurance?
If you drive a car, motorbike, van, lorry or any other kind of motor vehicle you must have insurance cover – by law.
Having car insurance means, if you have an accident or your car is damaged or stolen, you will be covered for the cost of the repairs or replacing it. Likewise, if you cause an accident and damage another person's vehicle you will be able to pay for their repairs or replacement.
There are three types of car insurance providing different levels of cover, they are:
- Third-party only
- Third party fire and theft
- Fully comprehensive
Third-Party Only
This is the most basic form of car insurance available and, as such, comes at a budget price so is the cheapest option on the market.
It provides cover only for damage you have caused as a driver to another vehicle. If your car needs repairs following an accident, or if it is stolen or destroyed in a blaze, you will not receive any money.
Third-Party Fire and Theft
This is the next step up from Third-Party Only insurance and again provides cover if you smash into another vehicle and damage it. But it also protects you, financially, against your own vehicle being stolen or destroyed by a fire, lightening or an explosion.
Fully Comprehensive
As the title suggests, fully comprehensive insurance covers all eventualities. It means you protected against accidental damage to another driver, fire, theft and will also receive cash to pay for any damage caused to your own vehicle. It also covers injury to third-parties and passengers in the policyholders' car. This is the most expensive option.