Car Insurance Explained
Motor insurance is one of the biggest single costs of driving - recent research suggests that it is responsible for around 22% of the total annual cost of running a car.
Seeing as it's such a big part of a motorist's expenditure, it pays to shop around for the best deal, and to do this you need to know about the main kinds of insurance and the various features that different policies offer.
Main Types
There are three main types of car insurance available, starting with the cheapest:
Third Party
This is the minimum level of insurance required by law - all drivers must take out at least this kind of policy. It covers damage caused to someone else's car, or injury to them, in the event of an accident that is your fault.
With this kind of insurance you won't be able to claim for yourself for any reason.
Third Party, Fire and Theft
This is a step above basic third party cover. If your car is stolen and not recovered, or destroyed by fire, you'll be able to make a claim. You'll still be insured against damage or injury to someone else in an accident blamed on you.
Comprehensive
With comprehensive insurance, you can claim for damage to your car even if the damage was caused in an incident that was your responsibility. This kind of insurance also covers the same things as third party, fire, and theft.
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