The Insurance Agent

Posts Tagged ‘Insurance Policy’

Car insurance is necessary if you wish to drive on the public roads.  Without it, you risk a hefty fine and even imprisonment. Car insurance is designed to protect the driver from the financial burden of an accident if the car, or its contents, is stolen.  Click here for more information.

There are many different insurance companies from which to choose, and this can lead to confusion – particularly if you are new to driving and have never purchased insurance before.  Here, we provide an overview of the type of considerations you need to be making when choosing your policy.

Firstly, although budget may feature highly in your list of insurance prerequisites, it is important that you do not select a policy based purely on cost.  Cheaper insurance policies will help your wallet in the short term, but in the end, they can end up costing you a lot more money.  Many drivers find that they have insufficient cover when trying to make a claim, the result of which is often the loss of the car with no compensation.

Therefore, it is important to know exactly which type of policy you need.  Here is a quick run through of the general types of policy available:

• Third Party:  this type of policy will cover other road users only. If you are involved in an accident, and it is your fault, you will receive no money, but the other driver will.
• Third Party, Fire and Theft: as above, but with the additional benefit of cover in the event the car is stolen or damaged because of fire.
• Comprehensive insurance: here, the policy covers you for most eventualities – including those listed above.  If the accident is your fault, if you are involved in a hit-and-run, etc.

Most insurance companies offer add-ons, which are optional extras.  For instance, you may opt for a courtesy car, so if your car is out of action, you will still be able to make use of a vehicle.  Some insurance companies do not allow you to opt in or opt out of such extras, which can make your policy more expensive than it needs to be.  Other companies, such as NoNonsense Car Insurance, enable you to select your extras.  This means that you only pay for those things you require, rather than paying for things you will never use.