Third party, fire and theft, or comprehensive?
There are three main types of cover for Motor Insurance policies in the UK and it can be confusing to know which one to go for. Should you go for the cheapest option possible, or perhaps the most expensive?
It’s a good idea to make sure you’re getting the right type of cover for your individual needs. That includes: your own personal circumstances, the type of vehicle you wish to insure, where you plan to drive it, and for what reasons you plan to do so.
So, where do you get started?
The three main types of Motor Insurance cover
While there is a lot of choice in the market in terms of optional covers, additional excesses, and the like, in the UK there are three main types of Car Insurance:
Third Party Only
It’s a legal requirement to have insurance before you can drive on the roads in the UK, and third party insurance is the lowest level of cover.
This type of cover is very basic however, and will only pay out to a third party: the other person involved in any road traffic accident or incident caused by you. It doesn’t cover the costs of repair, or replacement of your own vehicle, and nor does it cover you if your car is stolen or catches fire.
Third Party, Fire and Theft
This type of insurance offers better protection for you if your vehicle is stolen, or if it catches fire. It works out cheaper than choosing a fully comprehensive policy, but it does still limit the potential eventualities that you’re covered for.
Fully Comprehensive Insurance
Fully comprehensive insurance does what it says on the tin (well, almost) – it offers you protection against the costs of compensation for third parties, and it also delivers cover for loss or damage to your own vehicle, whether they have come about as a result of fire, theft, or a road traffic accident.
You do still need to be careful, however, as not all fully comprehensive policies are created equal! While some will offer to cover the cost of breakdown recovery, legal expenses, and more; others may not.
Likewise, if you happen to be towing a caravan or trailer, your comprehensive policy will still only offer you third party only cover for any damage caused by that caravan or trailer while it’s being towed, or if it becomes unhitched while you’re on the road. In this case, you’ll specifically need Caravan Insurance.
Choosing the type of cover that’s right for you
If you have an older car, then third party only insurance, or third party, fire and theft, may work best for you, as they will not cover the cost of repairs to your own vehicle if you get in an accident, or if your car is stolen. In these cases, the cost of repairs or excess may be greater than that of your car itself.
Do check the levels of cover and the associated premiums against each other though as, with so many new drivers opting for third party only cover to keep their costs down, many insurers have pushed the premiums up for this type of insurance – you may still be better off with a higher level of cover.
If you have a newer car, you will be better protected with fully comprehensive insurance. There are many options that insurance companies may have added as standard, or offer as optional extras, so it’s always worth checking every aspect of the policies you’re selecting from to ensure you’re comparing them like-for-like.
These extras can include:
- Legal expenses cover: helping you to reclaim any uninsured losses
- Breakdown cover: which gives you access to roadside assistance if you need it
- Courtesy cars: to help keep you on the move in the event of an accident
If you have a special vehicle, one that has been modified for example, you’ll want to know that your insurance covers every angle, so it’s worth seeking advice from your provider to see what your options are.
Where you’re driving, and why
When selecting your motor insurance, it’s also a good idea to factor in where you’ll be driving to. In the UK only, in Europe, or even further afield? And also why you’re driving – are you going on a holiday, or will you be driving for business as well?
These are all questions that you may be asked when completing an insurance proposal form, and they’re factors that might increase your premiums. However, if you don’t disclose all the relevant information when arranging your insurance, or if things change during the course of your insurance, your policy may be void, and you could find yourself without cover.
Touring holidays with your car
If you’re planning to drive abroad, always check with your insurer before you go to see how this affects your policy. For instance, Club Care Insurance offers member up to 240 days of EU use cover.
You may also need a Green Card, which can be shown as proof of cover, whilst you’re driving abroad. While Green Cards aren’t a requirement in most European countries these days, they do make it easier in case an accident should happen; they’re free, so it’s definitely worth getting one.
Breakdown cover can also be an important extra for your motor insurance if you’re planning on long journeys in your car – in the UK, and abroad. When checking your cover for driving abroad, check that your breakdown cover extends at the same time: it can prove invaluable.
The cover you need for holidays, at home and abroad with Club Care Insurance
Club Care has been working with members for over 15 years to develop insurance policies that suit your needs. Our Club Care Motor Insurance policies have been especially selected to offer you protection to cover a host of eventualities. With up to 180 days’ EU cover, there are also discounts available for existing Club Care policy holders. For a policy built with taking your car on tour in mind, call for your quote today.