Legally speaking, all drivers will need to make certain that their vehicle is covered by some form of insurance policy. Not only will such protection provide ample coverage in the event of an accident, but other instances such as fire, theft or glass damage are also frequently addressed. Like any insurance policy, vehicle insurance is designed as a “safety net” that will legally and financially protect the owner from numerous unforeseen circumstances. Still, there are a handful of variables to keep in mind.
The Types of Vehicle Insurance
Vehicle insurance can be grouped into three discrete categories: Third party, third-party fire and theft and a fully comprehensive package. Appreciating the differences between these packages is essential in making the correct choice. First, it is necessary to appreciate the fact that basic third-party coverage (often called liability) is the minimum needed to legally operate a motor vehicle. However, only damages caused to the other driver are covered; this policy will not financially protect the vehicle or medical costs of the policyholder.
Third-party fire and theft is the next level and as the name hints, this package will protect against any damages caused by a robbery or a vehicular fire. Fully comprehensive policies are the most robust plans, as they will protect against fire and theft alongside any damages to a third-party vehicle as well as the vehicle of the driver in question. Of course, premiums will vary depending upon one’s driving record and the plan that is chosen.
Things to Take Into Consideration
One of the most important considerations is one’s accident history, as this will have a direct impact upon the prices that are expected to be paid. Also, the type of vehicle and its intended use will have an effect on a policy. For example, an older car that is only driven a handful of times per week may very well be protected by basic liability. On the contrary, a sports car that is used for city commutes would be better protected by a more comprehensive policy. Those who live in areas of high crime should obviously consider fire and theft as an addendum to a basic package.
How to Get the Best Deal
Of course, the world of vehicle insurance represents a rather broad spectrum. So, some of the best tips to encounter the most amenable packages are:
- Compare multiple providers.
- Pay annual premiums as a lump sum (discounts can be encountered in this manner).
- Insure multiple vehicles under the same policy when applicable.
- Enquire how much a premium will rise in the event of an accident.
These are some of the best ways to make certain that the most appropriate plan is chosen.