Which type of car insurance do you require?
There are three levels of car insurance cover – third party; third party, fire and theft; and fully comprehensive. When purchasing car insurance it’s important to choose the option which will afford you the cover that you need.
The three levels of motor insurance cover are described below – take the time to read and understand the difference between them to make sure you select the right type of cover.
Third Party
This option offers only minimum coverage. It covers you for:
Injury to other people
Damage to another person’s property or car
Accidents caused by passengers
It does not cover you:
If your car is stolen
If your car is damaged in a fire
If you damage your own car
For medical expenses
Loss or damage to personal possessions (which are in the car)
As this type of insurance offers only very limited cover, it is really only suitable for people who cannot afford more comprehensive cover.
Third Party, Fire & Theft
This offers the same coverage as third party, plus you are also covered in the event of a fire, or if your vehicle is stolen.
However, it does not cover you:
If you damage your own car
For medical expenses
Loss or damage to personal possessions (which are in the car)
This type of cover offers a happy medium for those who cannot afford fully comprehensive cover.
Fully Comprehensive (‘Fully Comp’)
As the name suggests this type of insurance offers the same cover as third party, fire & theft; plus you are also covered if you damage your own car.
In addition to this, you will also be covered for medical expenses, and loss or damage to personal possessions which are in your car.
Please note, not all fully comp insurance policies offer precisely the same benefits. For example, in addition to the coverage outlined above, some insurers also offer fully comp customers additional benefits like courtesy cars in the event of an accident or theft. Many also offer protected no-claims bonuses.
Before taking out any policy it’s really important to thoroughly check that the policy offers exactly the cover which you require.
Summary of Coverage
| Third Party | Third Party, Fire & Theft | Fully Comprehensive | |
| Injury to others | Yes | Yes | Yes |
| Damage to other’s property or car | Yes | Yes | Yes |
| Accidents caused by passengers | Yes | Yes | Yes |
| Fire | No | Yes | Yes |
| Theft | No | Yes | Yes |
| Damage to your own car | No | No | Yes |
| Medical expenses | No | No | Yes |
| Loss or damage to personal possessions | No | No | Yes |