Car Insurance



Everyone needs car insurance - it is a requirement of the law. But what type to buy?


Third party


If you are going to drive on public roads, you must, as an absolute minimum, have third party car insurance. But this is not because the government is interested in protecting your car or giving the car insurance industry more business, in fact, third party insurance does not protect your car, it protects other people, third parties.

Consider an unfortunate incident in which you go out for a drive, and crash into someone through your own fault. As well as damage to your car and injury to yourself, there will be damage to the other car, possible injury to passengers in the other car, and possible injury to any passengers in your own car. All of these people may be looking for someone to pay their costs and possibly sue - and if the accident was your fault, their action will be against YOU. The claim could run to millions if serious injuries were caused. The government is not willing to let everyone take this risk, and what’s worse, leave any injured people without any remedy (since most people would not be able to pay any court judgements made against them). Therefore, third party insurance steps in to pay all the other people what you might find you owe them if you cause them loss.

This is third party insurance. However, many people, go above the minimum car insurance requirement and buy a more extensive insurance policy.


Third party, fire and theft


The next level up from third party insurance is third party fire and theft car insurance. This will give you the added protection of reimbursing you if your car is damaged by fire or theft. However, it will not cover the most common forms of damage caused to cars, which is damage caused while driving.


Comprehensive insurance


For this you need fully comprehensive insurance. This will cover you for any damage that may occur to your car. It is also the most expensive type of car insurance available, but if you have just paid for a brand new car, it is usually a good comfort to be able to pay a little extra and know that your car is insured.


No claims


Another thing that many people ask about when seeking to buy car insurance, is no claims bonuses. These are discounts on your premium that insurance companies give to their customers who do not make any claims. There is nothing an insurance company loves more than a careful driver who never makes a claim on their insurance. So if you do fall into this category, then you will be rewarded by discounts on your insurance premium each year. The discount will usually grow each year if you continue without making a claim. If you do make a claim however, then you will lose your no claims bonus and therefore, there may be situations where you damage your car slightly, but instead of claiming from your insurer, you simply pay for the repairs yourself so that you get to keep your no claims bonus.




Insurance prices, or premiums as they are called, are calculated based on the risk the insurance company thinks you have of having an accident, and the cost of such an accident. Therefore, if you are young, a male, or have a fast or expensive car, then the statistics will show that you are more likely to have an accident and your car insurance will cost more as a result.




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