Car Insurance Types

There are three main types of car insurance that you can purchase depending on the type of coverage that you want.

The first of these insurances is third party car insurance. This type of insurance is the most basic of the three. Third party car insurance means that if you cause an accident then the insurance company will only cover the cost of the damage that is done to the other vehicle. The insurance company will not cover damage done to your car. Accordingly this is the cheapest of all types of car insurance

The second type of car insurance is third party, fire and theft car insurance. This includes the above, but also extends to include cover to your car if damage is caused by either loss or fire. Accidental damage however is not covered. This will cost you slightly more than the basic third party insurance, but the extra cost is worth it for the peace of mind that the added cover brings.

The third type of car insurance that you can buy is comprehensive car insurance. This is the most expensive of the three but covers third party, fire, theft and accidental damage. This means that even if you cause an accident your vehicle will also be covered for any damage that has been done. For people who like to be covered in all eventualities this is the policy to go for. In addition, you will most likely be covered when you drive other people’s cars or hire cars.

Other than these three there are many specialty policies for things like rare or classic cars, electric cars and cars that are intended for business. You will normally need to look for these more specialist policies through a broker however. You can find independent insurance brokers who specialize in bespoke insurance (and other financial) packages by searching for companies that sell everything from classic car insurance to landlord insurance to umbrella companies and contractor insurance.