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Choosing the Right Auto Insurance
When we buy a car, we usually get to interact with an insurance agent right at the dealers shop and end up buying it. Thereafter, we carry on with the same company for the ease of continuing with it. We often avoid surveying for good car insurance because it sounds tedious.
It is important to check what various car insurance policies provide cover for and then compare. By not doing so with might be paying a lot more than it is necessary. Checkout what types of car insurance are available and see what you need the cover for.
Types of car insurance:
i. Third party cover This is mandatory by law. If you wish to drive, you must have third party insurance for your vehicle. It covers injury to another person or damage to another property caused by your vehicle. It is the cheapest cover available and fulfills the legal requirement.
While this is enough to put your vehicle on road, it does not provide any safety cover to your vehicle. So if something happens to you or your vehicle in an accident, you are left with no financial cover. You will have to pay for everything on your own, though you still have a minimum accidental cover as the owner of the vehicle. If your vehicle is very old or if you are planning to sell it soon, then it may suffice. In case of a new or not so old car, it proves to be insufficient.
ii. Third party, fire and theft cover This covers the third party liability to person or property and also covers damages to your car in case of theft or fire. It can be taken in combinations like third party and fire cover, third party and theft cover and third party, fire and theft cover.
This gives some protection to your vehicle as well. So in this case if the damage to your vehicle is due to fire or if your vehicle is stolen, it is covered. This still does not provide any cover in case of an accident. It is better to go for this cover for cheaper cars or for the older cars.
iii. Comprehensive cover As the name suggests it provides complete cover. This includes third party damages and damage to own car due to fire, theft accident or vandalism as well as accidental cover for self. This gives ample protection to third party damages and own car damages due to any reason and theft. This kind of vehicle insurance is generally sufficient to cover most situations.
Although comprehensive car insurance provides good cover to the vehicle along with covering the mandatory aspects, it is much more expensive than the other two types. While it is most suitable for new or expensive cars, it may be a little excessive for older or cheaper cars.
Even the comprehensive car insurance does not cover all. There are certain emergency situations that are not covered in any vehicle insurance. Now, to make the car fully covered, car insurance companies introduce add-on covers like:
Zero depreciation cover
No claim bonus protection cover
Emergency transport cover
Roadside assistance cover
Loss of personal belongings cover
Key replacement cover
Windscreen and accessories cover