How can you be sure that you have the right kind of car insurance for your budget and your needs? A good start is to know the difference between the various types of insurance. Let’s take a look:
Comprehensive car insurance is the most common type of insurance policy for new vehicle owners. This kind of policy covers a wide range of risks that you and your vehicle might be exposed to. But what exactly are you covered for, and do you really need it?
The official term for this kind of cover is limited liability, but we know it as third party, fire and theft cover. The biggest difference between this cover and comprehensive cover is summed up in the name, it only offers third-party, fire and theft insurance. This means that the accidental damage to your vehicle won’t be covered by this insurance policy. But what else should you know?
Typically this cover will be taken out by someone who wants to only be covered if their car is stolen, hijacked or written off. Minor accidents and damage will be self-funded. Damage to third parties and properties are also fully covered under this policy.
So, the next time you’re hunting for insurance quotes, you can go in knowing a little bit more about vehicle insurance than before.