Everyone is well aware of the fact that car insurance is a necessary expense that must be included in every driver’s budget.
There are basically three types of policies available. ‘Comprehensive’ insurance will cover you for the damage to your vehicle as well as the damage you may cause to other people’s vehicles or property. ‘Third Party Property Damage Fire and Theft’ only insures your car if it is damaged by fire or as a result of theft as well as damage to other people’s vehicles or property that you cause with your vehicle. ‘Third Party Property Damage’ only covers damage you cause to other people’s vehicles or property.
When looking for an insurance policy to meet your needs and budget, here are five things to remember:
- Think about who will drive the vehicle, even if only on occasions. Ask if there are any restrictions on who can drive the car, particularly young drivers.
- Find out about the Excesses that apply. An Excess is the first part of the claim that you may need to pay depending on the circumstances of the accident. Ask about any additional excesses for young or inexperienced drivers, or if the policy provides the ability to select a voluntary excess allowing you to reduce your premiums.
- Talk to your insurance consultant about the options available to tailor your insurance; for example, can you remove the excess for windscreen or other window glass breakage; is a hire car available should yours be off the road due to an accident?
- Consider whether it is important to you to have a choice of repairer and see if the policy allows you to do so.
- Resist the temptation not to have any insurance. You might be able to pay for damages to your own car, but can you also afford the repairs to someone else’s car or other property? What if you hit a high-end BMW or damaged a set of traffic lights? At the very least you should have third party property damage cover to avoid paying for these repairs out of your own pocket.
Find out more about car insurance which can be tailored to suit your needs.