The Right Coverage: What Are the 3 Different Levels of Car Insurance?

As a car owner, it is your legal obligation to have car insurance. Besides being a legal obligation, car insurance protects you and your family from costly expenses. You also protect other road users since, in the case of an accident, they can have the injury expenses warranted by the insurance company.

Although we try as much as possible to prevent an accident, we all make mistakes sometimes. A car insurance policy gives you peace of mind since you are insured in case of anything. Car insurance policies are on three levels, each level having unique features, as we have outlined below.

1. Comprehensive Insurance

The comprehensive insurance is the highest level of policies. Besides insuring damages to a third party, fire, and theft, it also protect you if you damage your car, even if you are at fault.

You are at liberty to claim repairs after an accident, accidental damage of your car, or vandalism. Comprehensive insurance also tend to have a policy for the windscreen.Although the comprehensive policy entails many things, it is vital to confirm what your policy says. For instance, check if it insurers personal belongings in the car at the time of an accident, loss or theft of the car keys, and the car stereo or speakers. Check out A Better Choice for an all exclusive comprehensive policy.

Besides, ask other questions such as getting a courtesy car to drive while yours is under repair. How long will they keep your car? Do they have an approved repairer? Can the policy insure extra people, such as a spouse?

2. Third-Party, Fire, and Theft

Like the third-party policy, it warranty damage caused to other vehicles, injury to other people or animals, and property damage. Besides, it caters for repairs and replacement if your car is stolen or catches fire.

Besides, it may also cater for any damage to your car resulting from an attempted theft, for instance, if a thief breaks your car window in an attempt to steal the stereo system.

3. Third-Party Car Insurance

The third-party insurance is the minimum you can have according to the law, although not always the cheapest. However, as the name suggests, it protect other people, not you. The insurance will compensate for injuries caused to other people or any damaged property. However, it does not insure your injuries or car damages.

You can consider a third party car insurance if you don’t have a any claims bonus, or live in a neighborhood considered a high-risk for crime. It can also be the right choice if you can easily afford to buy another car in case of an accident. Understand any inclusions or exclusions.

The no Claims Bonus

Insurers would be happy if you don’t claim. Therefore, they give you a bonus if you don’t claim within your policy. The bonus grows every year if you don’t make a claim.

However, if you claim after an accident, you lose two years’ worth of no claims bonus, and your premiums will go up. If you are involved in more than one accident in the same year, you might end up losing your entire no claims bonus.

It is essential to notify your insurer of an accident, even when you don’t claim. Otherwise, your future claims might be denied.

Protect your Policy

Ensure that you give your insurer accurate details, and notify them of any changes. Otherwise, you would have challenges making a claim in the future.

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