Car Insurance explained

Car insurance is a regular financial outlay for the majority of us - and a legal requirement if you are driving a vehicle on the roads. Yet many of us still do not know enough about the product. When shopping around, or indeed buying car insurance for the first time, it is necessary to know what kind of policy you require. This particular issue centres around what you are driving and for what reason.

The basic product is standard Third Party insurance. This covers a few eventualities that may occur when you are out on the road. Situations that you can insure against with this product include injuries to other people. If you damage other people's property with your vehicle, the insurance will cover a portion of the costs This type of policy may be useful for motorists whose cars that are a little on the older side, where the cost of replacing them if damage occurs isn't too much. But if you have a newer car, other policies may be more fitting.

You could consider taking out Third Party Fire and Theft insurance. Just like the name suggests, this covers everything that Third Party insurance does, but also covers you in the event of a fire or theft of the vehicle.

Again, this is good as a policy for those owners whose cars do not cost a lot. It is not the most expensive product, so might be suited to younger drivers who find the cost of a more sophisticated insurance product prohibitive.

If you want the most complex product as regard car insurance, ie one that covers just about everything, then you should consider a Fully Comprehensive policy. This is not the cheapest of options, but if you have a reasonably expensive motor, then it is what you may wish to opt for.
Not all fully comprehensive insurance is the same. But most providers offer a product that covers everything that Third Party and Third Party Fire and Theft cover, plus a little more. Any accidental damage to your car can be part paid for by the policy, for example. You will also receive some personal accident benefit. Any medical expenses that arise from an accident will often be covered too, which is a great plus point for the product. The product is most attractive for a lot of motorists due to the fact that it can also cover loss of or damage to any personal effects in the vehicle. So if there is any damage to anything in your vehicle for whatever reason, then in most cases you will get some financial compensation.

There are a vast number of car insurance providers out there. The average motorist can be forgiven for thinking that organising insurance for their vehicle is beyond them, simply due to the mass of information available. One thing you can do is arrange for a specialist broker to shop around for the best deal for you; this will reduce the legwork you have to do to find a good policy.
by
David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to giving consumers the best insurance deal. They offer great value home, life and car insurance.

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