Types of Car Insurance Policies
Motor insurance is one of the few compulsory forms of insurance, apart from employers' liability and buildings insurance (if you have a mortgage). It is an offence under the Road Traffic Act to take your car onto the public highway without insurance.
Every time you take the wheel, you run the risk of damage to your car, to yourself and to third parties and their property. While it may be tempting to go for the cheapest insurance cover, this may turn out to be a false economy.
There are three forms of motor insurance cover:
1. Third Party
Third party is the minimum legal level of insurance. The first two parties are the insurance company and the driver. Third party insurance covers your liabilities in respect of:
Injuries to others (i.e. to your passengers and other persons not inside your car).
Damage to other peoples' property (e.g. the third party's car, but not your own vehicle).
2. Third Party, Fire and Theft covers the aforementioned Third Party risks plus theft, and damage to your vehicle caused by attempted theft and fire.
3. Comprehensive
Comprehensive insurance covers third party, fire and theft risks plus:
Accidental damage to your vehicle
Malicious damage to your vehicle
Personal accident
Medical expenses, to a limit
Loss of, or damage to, personal property carried in your vehicle, to a limit
New for old replacement in the first year.
Glass replacement (windscreen, sunroof and windows).
