These days, we are spoilt with choice as consumers, so you may find yourself asking: “What are your options when choosing car cover?” Driving an uninsured car is like riding on a roller coaster without strapping in – you just can’t afford to do it. In fact, driving without insurance is actually illegal in some countries.
Cars are expensive assets, so when accidents happen they can be major setbacks as it may take you some time to find the money you need to repair the damage. Remember, you can also be liable for damage to someone else’ vehicle, meaning double the cost. Fortunately, car insurance options have become more affordable and more adaptable. This allows you to choose the plan that best suits your needs and your budget.
These days, there are many car cover options that are customized to suit the individual needs of motorists. New policies for car cover are more flexible than ever before to offer sufficient cover at an affordable price. So, what are your options when choosing car cover? Essentially, there are three different types of car insurance policies that are the standard options that are refined over the years as motorists’ needs change:
- Comprehensive cover: Good for financed, expensive, high mileage or new cars.
- Third party fire and theft insurance: This option is good for older vehicles with average mileage and for vehicles that are mostly paid off.
- Third party insurance: This option is suited to old cars, cars that are paid off and for individuals who have a limited budget.
There are also new insurance options to help you personalize your policy so that you are paying for what you are using, such as:
- Motor Xtender plan: This kind of insurance also covers maintenance and motor repairs.
- Pay As Your Drive vehicle insurance: People who don’t spend much time driving may benefit from paying only when they use their car.
Here are some further details about the various car cover options:
Comprehensive car insurance
As the name suggests. comprehensive car insurance provides complete protection for your vehicle and is best suited to expensive and new vehicles. If your car will accumulate a high mileage it is also worth getting comprehensive cover. If your vehicle is financed by a lender they may require that you have this type of insurance.
What does comprehensive car insurance cover?
- Natural disasters
- Accidental damage (this covers your own vehicle as well as any other third party property or vehicles that was involved in the accident. It also covers third party accidental death or injury)
Third party fire and theft insurance
For average-mileage vehicles, cars that are paid off for the most part, and those that are not particularly new or old, consider third party fire and theft insurance. Also known as limited liability cover, this insurance is an affordable option that will cover your vehicle against theft, hijacking, or fire (including lightning and explosions). Third party fire and theft cover doesn’t insure your own vehicle against damage that occurs accidentally, but it does cover you for injury or accidental death of a third party as well as damage to the third party vehicle.
Third party insurance
This insurance option is usually recommended for old vehicle, people on a tight budget, and cars that are not often on the road. Third party insurance is a low-cost option that covers only third party accidents, such as damage caused by you to a third party vehicle, or injury or accidental death of the third party. Your own car is not covered for any loss or damage.
Motor Xtender insurance
The motor xtender scheme allows you to budget for repairs and routine car maintenance to keep you and your passengers safer when driving. A car that is well-maintained is also less likely to break down or be involved in car accidents.
Pay As You Drive insurance
Pay As You Drive is the new kid on the block in terms of car insurance, catering for people who don’t spend much time on the road. This comprehensive plan’s price is calculated according to how much time you spend on the road.