The Basics of Car Insurance
If you're new to car insurance it can seem like a complicated subject, but once you get past all the hype and marketing of the insurance companies, it's really quite simple. Motor insurance comes in three basic forms, which will be your starting point when deciding which policy to take out.
Third Party
This is the simplest, cheapest form of insurance you can buy, and it's also required by law for every vehicle on the road. Basically, a policy of this kind means that if you cause an accident, then any damage caused to someone else's vehicle will be paid for and they won't be left out of pocket.
With third party insurance, damage to your own car will not be covered, nor will you be able to claim if your vehicle is stolen.
Third Party, Fire And Theft
This kind of policy is one step up from simple third party. As well as covering damage you cause to another vehicle, your own car is covered against theft or damage caused by fire. This insurance isn't much more expensive than the most basic kind, and so most people choose it in preference as it gives better cover for little extra cost.
Comprehensive Insurance
Comprehensive car insurance is quite a bit more expensive than third party, as it will also cover any damage to your own car in an accident that was your own fault. You'll also be covered for damage caused by someone else if that person's insurance can't be claimed on - for example, in a 'hit and run' accident.
Many comprehensive policies go even further, covering your in-car audio systems for example, or providing free windscreen replacement, roadside assistance, and even accomodation and transport if your car is put out of action. Naturally, these features will tend to bump up the price, so only include them on your policy if they're likely to be of use to you.