Insurance companies offer various insurance policies and deals in the UK, and many people find it challenging to choose the right one. However, when you understand the insurance types and the difference between each coverage, it becomes easier to choose a policy that best fits your needs. There are three types of coverage in the UK
1. ThirdParty
2. Third Party Theft and Fire
3. ComprehensiveInsurance
1. Third-party
Third-Party Insurance Policy is the minimum level of cover you need to drive on the UK's roads. If you are not a regular driver, you still need this type of insurance. You will pay the premiums even if your car is in the garage for a long time and covered with dust. It is due to the Legislation "Continuous Insurance Enforcement" passed by the UK Government in 2011.
Besides, Third Party Insurance does not provide substantial protection or coverage and will cover injuries and damages caused to other people's cars or property. The insurance company will pay for the damages if you are an at-fault driver. Remember, Third Party Insurance does not cover your injuries or damages to your own car.
2. Third-PartyFire and Theft
Third-Party Fire and Theft Insurance is similar to "Third Party Policy." However, it provides an additional protection layer, meaning the insurance company will also cover your injuries
and damages to your car or property. As the name indicates, the company will pay for damage or loss if your vehicle is stolen or damaged by fire.
If you have an inexpensive car, you can choose this type of insurance than other options available to you. Remember, this is not the cheapest type of insurance coverage in the UK. For example, this type of policy's average annual cost was £828 in 2020. It is more costly than the average comprehensive insurance policy by over £300.
3. Fully Comprehensive
As the name indicates, fully comprehensive insurance coverage provides the highest level of protection to motorists. It provides coverage for damages to your car, third-party car, and pedestrians. Fully comprehensive insurance will also cover injuries, fire, theft, and other types of accidents.
Fully comprehensive insurance was the most expensive policy in the UK in the recent past. Because many young drivers opt for Third Party Insurance Policies, the price has gone up in recent years. Thus, experienced drivers choose a fully comprehensive policy due to its cheaper premium rates.
The average cost of this type of insurance was £490 in 2020. Bear in mind that each comprehensive policy is different and varies from company to company. Therefore, as a driver, you must take your time and understand the terms and conditions to choose a policy that best fits your needs.
Final Words
Choosing the right car insurance policy is a daunting task for many drivers. We suggest you do your research, go through each policy's terms and conditions, get quotes from multiple
insurers, and compare them. That way, you can make an informed decision and choose a policy that will fulfill your requirements.
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