Types Of Car Insurance Cover
What different types of car insurance policies are there?
There are three fundamental types of insurance policy that you can buy. There is third party only cover, which will cover you for the damage you cause to other people's property or injury to other people. There is then third party fire and theft, which will cover you for the liability, that damage you cause, plus it will cover you for fire damage to your vehicle and theft of the vehicle. Then, the final cover is comprehensive cover. This covers you for the third party liability, fire and theft, and indeed for damage to your own vehicle, irrespective of fault. Over and above that, when you get into various policies, various insurers will have numerous benefits which they will attach to the policies to try and entice you to buy from them. These benefits obviously will cost more money, and so you have to decide what is the fundamental cover you require, and from there, what extra policy benefits do you feel you need and you can afford.
What is 'fully comprehensive motor insurance'?
It can be all kinds of things, but fundamentally, fully comprehensive car insurance covers you for liability damage: the damage that you cause to other people's property or injury you cause to their person. Fully comprehensive car insurance will cover you for fire or theft damage to your vehicle. It will also cover you for damage to the car after an accident, irrespective of who is at fault. From there, fully comprehensive insurance may well offer you all kinds of additional benefits, such as courtesy car cover, windscreen cover and overseas European cover. This will depend on the insurer and on the price that you want to pay for car insurance.
What does fully comprehensive motor insurance cover?
Fully comprehensive type of motor insurance covers you for the damage that is sustained to your vehicle in respect to an accident, irrespective of who is at fault for that particular accident. In addition, it will of course cover you for the mandatory liability cover; that is, damage you may sustain to someone else's vehicle, or injury to that other person. Fully comprehensive car insurance will also cover you for fire damage, theft damage, or indeed theft of the vehicle.
What is 'third party motor insurance'?
Third party motor insurance is the minimum legal requirement of insurance that you need to drive on the road. This means that when you purchase third party car insurance you are allowed to drive on the road, and your insurance company will pay for any damages levelled against you for injury or damage to property in event of filled claim. Third party motor insurance is different from comprehensive insurance, which will also give you the same cover, but will also cover you for damage to your own car.
What does third party motor insurance cover?
Third part motor insurance cover relates to if you are driving on the road and you have a claim involving hitting somebody else's car, your insurance company will pay for the repair of that person's vehicle. More importantly, if you drive on the road and you injure somebody, maybe a pedestrian and they are very badly injured, then third party motor insurance will mean your insurance company will pay for all of the costs that come from that person's injury. This could be many millions of pounds.
What is 'third party fire and theft motor insurance'?
Third party fire and theft motor insurance is the minimum requirement that you need to drive on the road, in case you injure or damage somebody else's property. In addition it will also cover for damage to your vehicle in the event of a fire claim or if somebody steals your car and the car is not returned or is returned damaged. So it's third party lability, plus fire damage or theft damage to your vehicle. But it will not include damage to your vehicle in the event of a claim or accident, even if you are not at fault. For that cover, you will need comprehensive.
What is 'business car insurance'?
Business car insurance is a type of car insurance which covers cars owned by businesses, where the car is required to be used in connection with that business. In such a case, there are often others drivers that will need to drive that car in connection with the business of the employer. That employer will therefore have to buy business car insurance to allow those other drivers to drive that vehicle in connection with that business and be legal on the road. This policy differs with most people who buy car insurance policies for themselves to drive the car, or maybe their spouse, or other drivers for purely social, domestic and pleasurable use.
What do business car insurance policies cover?
A business car policy will cover exactly the same cover as a person insurance policy. It will simply allow people to drive that car in connection with the business of the policy holder. It really is as simple as that. The coverage itself will be dependent on the cover that the owner of the vehicle requires to have; third party only, third party theft, or fully comprehensive. But the reality is, it will allow people to drive the vehicle in connection with that policy's holders business, providing they are named on that policy.
Am I fully insured when driving a company car?
I terms of types of car insurance cover, when you drive a company car you will be fully insured providing the policy holder has notified the insurance company that you will drive that company car and they have accepted you as a driver for that vehicle. If that is the case, you will not need to worry as you will be fully insured.
Will my company car insurance cover me for injury to my passengers?
In terms of car insurance cover, company car insurance will cover yourself for injury and your passengers, but of course, as always, it's providing that your employer or the policy holder has notified the insurance company that you will be driving the company car. In such a circumstance, all passengers will be covered and against injury in the event of a fault claim.
Will my company car insurance cover me when I use the car for personal use?
Your company car insurance will almost definitely cover you when you use the car for personal use, but it really does depend on the type of car insurance policy that your employer has purchased and whether he has asked the insurance company whether you can drive the car for personal use. Really, you just need to check with your employer whether your company car is covered for personal use in the first instance, and if he says you can, then you'll be covered.
Will my insurance pay for a courtesy car if mine is off the road after an accident?
In terms of car insurance cover, your insurance company in most cases will pay for a courtesy car if yours is off the road after an accident. But this is one of those situations where a courtesy car is a policy benefit and some policies will offer it, and some policies will not. You really need to talk to your broker or your insurer when buying the car insurance policy and request to them that a courtesy car is included. But of course you may have to pay a small additional premium.
