If you need to buy insurance for your car or van, then you will have doubtless seen that there is a myriad of different insurance policies available to buy. But the trouble is, how do you know which is the best insurance policy for you?
This expert guide will discuss the different options available so that you can make an informed purchasing decision!
Third Party Fire & Theft Insurance
Sometimes referred to as “TPFT” by people in the motor and insurance industries, this is the basic insurance policy that you can buy for a car or van.
Although ‘third party’ is the absolute minimum legal level of cover that you can buy for vehicles in the United Kingdom, you will find that most, if not all, insurance companies only offer third-party fire and theft policies as their most basic cover.
This type of insurance will cover you if you are involved in an accident with other motorists, and you need to pay for repairs to their vehicles, or for personal injury compensation. However, it does not pay out for repairs to your own vehicle, except in the case of fire or theft.
Three Types of Coverage You Should Know About
Fully Comprehensive Insurance
This type of vehicle insurance is the same as third-party fire and theft, except that it will also cover repairs on your vehicle too.
If your car cannot be economically repaired (i.e. the repairs costs exceed a certain percentage of the value of your car), then the insurance company will declare the car an insurance write-off, and issue you with a cheque for what they believe the value to be.
There are other benefits to fully comprehensive car and van insurance, such as windscreen and glass cover, as well as cover for any valuables that have been stolen from your vehicle. The additional benefits on fully comprehensive policies vary by insurer, so it’s always best to shop around and see what exactly you get for your money.
Also known as commercial vehicle cover, van insurance as you might have guessed is aimed exclusively at van owners. The levels of coverage on offer are exactly the same as for cars (third-party fire & theft and fully comprehensive), but van drivers tend to get better insurance quotes from insurance companies that specialize in covering commercial vehicles.
If you are self-employed or you have a company that operates a fleet of vans that your employees use, then it is definitely worth considering approaching a specialist van insurance company. They can usually offer add-on products suitable for your requirements such as goods in transit cover, which is extremely useful for those who work as couriers and carry other people’s goods in their vans when making deliveries.
One Day Insurance
Although, for the most part, people want to insure their cars on an annual basis, there are occasions where you only need temporary cover for literally a day or so – this is where one-day insurance cover comes in handy!
For example, if you are repairing your car at home and you need to drive it to a garage for an MOT test, but you don’t want to go to the expense of insuring your car for an entire year or 10 months, then a one-day insurance policy would be ideal for such circumstances.
This type of cover is often a lot cheaper than an annual policy and is available to buy from most reputable car insurers. Be aware though, that the cover will be for third-party only, so you won’t get any repairs or replacements if your car gets damaged!
What are 3 things we should consider when choosing auto insurance?
1. Coverage Levels – One of the first things to consider when choosing an auto insurance policy is the level of coverage that is most suitable for your needs. Different policies offer varying levels of coverage and deductibles, so it’s important to understand what each option covers and how much protection it provides. Generally speaking, higher coverage levels provide more protection in case something happens to your vehicle or if you are involved in an accident.
2. Price – Another factor to consider when purchasing auto insurance is price. While price shouldn’t be the only factor in determining which policy you choose, it’s important to remember that the cost of premiums will have an impact on your budget over time. That’s why it’s important to compare different policies from various companies and look for any discounts or benefits that may help reduce your costs.
3. Customer Service – Last but certainly not least, customer service should be taken into account when selecting an auto insurance provider. Just like any other business transaction, quality customer service is essential when dealing with claims and getting assistance in times of need. It’s always a good idea to do some research ahead of time and read through online reviews before signing up with any particular company or broker.
Hopefully this guide has helped to explain some of the different types of car and van insurance policies available in the UK, and what each one covers you for. Always remember that it pays to shop around and compare quotes before making a decision – this way you can ensure you get the right policy at the right price! Good luck with getting insured!