The Various Types of Car Insurance

All vehicles being driven on the roads of the UK must have appropriate insurance. Thankfully, there are various types of car insurance available to meet the needs of all cars and all drivers. By law, the minimum car coverage required is one called third-party coverage; however, there are other types of car insurance you can choose from.

Third-Party

Third-party insurance is the cheapest car insurance available and covers all parties in an accident involving the insured automobile except for the person holding the insurance policy. Damage to property and other vehicles besides the insured person’s vehicle are covered as well.

Fire and Theft

Another type of car insurance that is fairly cheap, but includes more coverage than the standard third-party policy, is fire and theft. Fire and theft work in the same manner as as the standard third-party insurance except that fire and theft covers stolen vehicles or those damaged by fires. Replacement and repair costs are included in this type of policy.

Types of Car Insurance

Fully Comprehensive

Fully comprehensive is a type of insurance for cars that provides the most coverage for drivers and their automobiles. This policy is a combination of the coverage of fire and theft, third-party, and other coverage scenarios. Under most circumstances, fully comprehensive policies insured accidental damaged to the vehicle despite who the at-fault driver is. There are also many other coverage points included in fully comprehensive insurance that are different depending upon the individual company and the plan.

However, because there are a lot of coverage options when you purchase a comprehensive car insurance plan, it can be expensive to pay for. Owners of new automobiles tend to lean towards comprehensive insurance because new cars carry a lot of value, which justifies the high premium rates that come along with it.