Car insurance. Not something we really want to think about. After all, it’s incredibly expensive. In fact, those dreaded renewal fees can leave us feeling frustrated by the costs involved. After all, most years, we won’t need to claim. That’s before remembering that your insurer may not even pay for repairs if the car’s damaged beyond its value. Ouch.

This begs a simple question: what type of insurance do you need? Well, if you’ve been asking yourself this, today’s quick guide may help.

Always Double Check Your Vehicle’s History Before Taking Out Insurance

Thus far, we’ve considered the two main types of car insurance: Third-Party and Comprehensive. However, while the type of plan you pick is the biggest influence on your policy’s cost, it’s worth noting that there are many other factors to account for too. Notably, the value of your car and its history can have a huge role to play. As such, if you’re insuring a new car for the first time, always run a car checker first. This allows you to view its MOT history, thus helping you understand your insurance offers more clearly.

The Basic Requirements to Drive Legally

Not all policies are the same. Naturally, each policy can differ significantly from the next. Still, you’ll at least need basic cover to legally drive on the road. Such policies are called “Third-Party Insurance.”

If you don’t hold third party, driving on the roads will be illegal. This is largely due to the risk you could pose to other road users. However, Third-Party policies are much more limited than many people initially realize. As such, you may still want to consider investing in a more thorough plan.

Third-Party vs Comprehensive

Before choosing a policy, you’ll first need to understand the two main types of cover. These are Third-Party versus Comprehensive. These two policies are very different in coverage, and whereas Third-Party is a minimum requirement, comprehensive plans offer a slightly more thorough coverage. However, bear in mind they differ widely in cost, too. Naturally, Comprehensive plans are much more expensive each month.

What is Third-Party Insurance?

Third-Party car cover is the most basic requirement to drive legally on the roads. This insurance policy offers coverage for any third party individuals involved in a collision with your vehicle. This helps ensure, should you end up in a crash, you will be covered for any damage or injuries others sustain. However, keep in mind that this policy doesn’t cover your car. As such, if you need private medical care or your car needs repairs, you’ll be liable for the costs.

How Does Comprehensive Insurance Differ?

As the name would suggest, comprehensive cover goes above and beyond the main offerings of regular Third-Party plans. Indeed, these policies don’t just cover other people but also you and your car. Therein, if you’re involved in a bad crash, you can claim on your policy for your losses, too.