What kind of motor insurance do you need?

October 5, 2007 By

OK, so you’ve been to your local dealer or visited an Internet used cars finder like Fish4 cars and picked up a bargain. Now you need insurance of some kind, but which type?
Car insurance protects motorists against liability in the event of accidents that they may cause. It can also cover the motorist’s own vehicle.
It’s a complex business with literally hundreds of different policies to choose from. Finding the right insurance at the right price can be a tricky process. There are hundreds of insurance providers these days – even supermarkets such as ASDA are offering car insurance. You will almost certainly find it advantageous to check around a number of providers, and traditional insurers such as Co-operative Insurance now provide car insurance online.
Types of cover
Although different companies’ policies vary, there are essentially three standard types of insurance cover ranging from third party cover (protecting individuals against liability should they injure a third party or cause damage to a third party’s property) through third party fire and theft to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties.
Third party only
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This is the basic requirement by law. It covers your responsibility and your legal liability if you injure other people or damage their property.
It covers liability for:

Injuries to other people, including passengers
Damage to property
Passengers for accidents caused by them
Issues arising from the use of caravan or trailer while attached to the car.

If you can’t afford a more comprehensive type of car insurance or your vehicle isn’t worth very much then third party may be adequate insurance cover. If you can afford it or have a more valuable vehicle, you need to consider something better.
Third party fire and theft
In addition to the standard third party policy (Sometimes written as TPFT) provides cover for loss or damage to your car by thieves or by fire.
As with standard third party cover, in the event of an accident for which you are at fault TPFT will not pay for repairs to your car.
Again, though offering limited cover limited TPFT cover is useful for people whose car of little value. It can also be useful for younger drivers whose fully comprehensive policies might be are too costly and also for occasional drivers or those with minimal no-claims bonuses.
TPFT is generally considered unsuitable for regular drivers, or those with expensive cars.
Comprehensive
In addition to TPFT coverage, comprehensive (normally known as a “fully comprehensive”) insurance will also cover any damage to your own vehicle regardless of whose fault the accident was.
Additional Comprehensive Motor Insurance policy coverage usually includes:

Accidental damage to your own car
A personal accident benefit - certain amounts are paid in the event of the death or specific permanent disablement of the policyholder (and sometimes his or her spouse or family member)
Medical expenses necessarily incurred, up to a stated limit
Loss of or damage to personal effects in the car, up to a stated limit.

Many insurers will offer (usually at a price) additional variants on their policies, such as courtesy cars in the event of theft, breakdown or accident, protected no-claims bonuses, free cover for driving in Europe and, in some cases, legal aid when the accident is not your fault.

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