A Guide to Motor Insurance

In many cases insurance is not compulsory; house insurance and insuring your own life are two examples. However, this is not the case with vehicles that are to be driven on the public road. The Road Traffic Act, makes it is an offence to drive your car on public roads without at least third party car insurance cover.

This is for a very good reason: each time that you travel in your car there is an element of risk. You might cause damage, not only to yourself and your car, but also to third parties (other cars and people on the road), as well as their property.

There are three primary forms of motor insurance coverage.

Third Party Motor Insurance

The first is known as third party insurance. This kind of policy offers the legal minimum of coverage. Third party insurance covers a driver’s liability in regard to injuring others; this may include the driver’s passengers or other people not inside the insured’s car. The insurance also covers any damage caused by the driver to other peoples’ property. This includes damage to a third party’s car and damage to property such as buildings, road signs, etc. It is important to note here that such insurance DOES NOT provide any cover for damage to your own vehicle however caused. So if someone crashes into your parked car you will have to claim against the other driver’s insurance. Your company will not be interested.

 

Third Party Fire and Theft

The next level of insurance coverage is third party (as above), plus fire and theft. This policy will include all the aforementioned aspects of third party insurance. In addition, it covers any damage to your vehicle that is caused by fire or the actual theft of the vehicle.

Comprehensive Motor Insurance

Finally, comprehensive car insurance, as its name suggests, is the most inclusive and wide-ranging car insurance available. As well as third party, theft and fire coverage, it also covers your own vehicle fully (subject to any agreed excess). This includes cover for any accidental or malicious damage to your vehicle; personal injury in an accident (both driver and passengers) and limited medical expenses; damage to or loss of any personal property in you car (though this is limited); and glass replacement for a damaged windscreen, sunroof or other windows. Such policies will also carry other benefits in the event of a claim. Comprehensive car insurance is the best option for most drivers. As with all things in life you do get what you pay for.

In addition to the different levels of car insurance, there is a range of different car insurance options/provisions to suit some special requirements or categories of driver. For instance if you only drive a few miles each year; are above a certain age; have an especially powerful kind of car or own a vintage model, you will find a provider that will cater for you. Also lady drivers will find that there are companies that specialise in providing car insurance just for their gender. This is generally cheaper than insurance for male drivers as females are considered a lower risk when driving. This is backed up by accident statistics.

The age and experience of a driver is also a very relevant factor. Young drivers are defined by insurance companies as being those below the age of 25 years. A young driver’s car insurance premium will be higher than for drivers who are over the age of 25. Young drivers of sports or fast models will pay hefty car insurance premiums; accident statistics from this category are too high for insurers to ignore. Nevertheless, young drivers’ car insurance premiums will dramatically drop as their age and driving experience increases. This is subject to hopefully a claim free record. They will also benefit, as we all do, from a no-claims discount that will accumulate year-on-year.