Types of car insurance in the UK
Car insurance. Which is the most suitable for us.
There are 3 types of car insurance:
- third party
- third party, fire and theft
Third part is the minimum that we need to buy insurance. In the most extended comprehensive version it may happen that it will be cheaper than the third part. Therefore, we do an analysis of all 3 types of insurance, as the simplest policy do not need to be the cheapest.
In the case of insurance: third part is the equivalent of Polish OC, or in the case of the damage of car the insurer will cover the damages only in the case of the second vehicle. If your car is damaged or you yourself, unfortunately, the insurer does not pay you anything.
In the case of insurance third party, fire and theft, if your car is damaged, the company will not pay you. The only difference is so that in case of theft or fire car insurer will cover the repair or compensation for scrapping a car. Also, in the case of affiliation may happen that the insurance will be more expensive than comprehensive version.
The most expensive and most complex policy is comprehensive policy. The policy has all previous versions of Thirta Party, fire and theft, and insures you in the event of damage of your car, even if it was your mistake. This policy is equivalent to the Polish AC.
Each policy has a few additional options that may vary between different companies. Therefore, carefully read your policy.
The differences may concern eg. the repair of damaged (broken) window, assistance services, insurance of equipment, Car Audio, etc. Also be aware that the policy is on the driver and not on the car and this means that as you want, eg. your wife also drive the car then you need add her to your policy as an additional driver.
Discounts affect the cost of your policy and the most typical scale of these reductions are presented as follows:
- 30% discount after 1 year
- 40% discount after 2 years
- 50% discount after 3 years
- 60% discount after 4 years
- 65% more than 65% after 5 years
In the event of an accident, an insurer may bring your discount. Therefore, you should buy an insurance policy, which has the ability to protect discounts even if there was an accident and compensation.
Therefore, pay attention to such a provision in an insurance company: 'No Claims Discount protection’. Of course there are some limitations and usually they involve a max. 1 accident per year or two. Each coverage in this case is different. Therefore check a contract thay you have with the insurance company.
Another characteristic thing you need to remember when buying insurance for your car is Excess. Excess means that in the case of compensation, insurance company will cut your payment of excess value, which is usually set when you buy the policy and it reduces the premium. Very often, if you purchase a policy with a higher value of the excess that you will get a bigger discount on your policy.
Of course, the agreement is checked what is your contribution for compensation depending on the damage. Another contribution will be for damaged windows and the other in the event of a failure in the accident.
NOTE: I present private opinions and I am not responsible for the readers’ decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser. Please refer to the page: disclaimer of responsibility, to make you aware of the importance of the information provided.