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What if you can’t afford top notch car insurance cover

We all know how important it is to insure the car we drive, but it can really cost us an arm and a leg to make sure we have that peace of mind. What if financially you just can’t afford the quotes, car insurers are offering you? Are there any alternatives?

Let’s start off by looking at the types of car insurance options available, in the market, and what they actually mean:
  1. Comprehensive Cover
As the name suggests, this is the type of cover that is most extensive and is typically offered by 99% of brokers and direct insurers. You are covered for theft and hijacking, as well as any loss or damage, caused by accidents, fire and natural disasters (like when hail stones the size of cricket balls fall from the sky). It’s also important to note that you are covered against claims by third parties, where you are the one responsible for damage to their vehicle.

If you can afford it, you should be opting for comprehensive cover.
  1. 3rd Party, Fire & Theft Cover
The only difference between this cover and the comprehensive type, mentioned above, is that it doesn’t cover accidental damage to your car. IF YOU HAVE AN ACCIDENT IN YOUR CAR IT’S NOT COVERED. But, if your car is hijacked, stolen, involved in a fire or you have a 3rd party claim, you are covered.

While this type of insurance is cheaper than comprehensive insurance, you need to think about the risk of driving around and not having cover for an accident. If you are on the road a lot then it might be too risky to opt for limited cover, like this. But, if your car is parked at home the entire day and you are seldom on the road, it’s worth a look (depending on the cost / risk trade-off, naturally)
  1. 3rd Party Only
This is the cheapest of the three covers. It’s going to cover damage you may cause to someone else’s vehicle (they are considered to be a 3rd party). Your vehicle is not covered at all. Any loss suffered to your vehicle (accident, theft, hijacking, fire, natural causes etc) will not be covered.

So, when would you consider this type of cover?

You really should only consider this type of cover if your vehicle is paid off and is of low value. You don’t want a situation to occur where you are sitting with a vehicle that is damaged or, even worse, been stolen or hijacked, and you still owe money on it.

Now that you know a little more about the types of car insurance cover, available to you, it’s important to always weigh up the risk vs premium factors.
  • If your vehicle is always on the road, you should opt for comprehensive cover
  • If your vehicle isn’t on the road much at all, perhaps go for 3rd Party, Fire & Theft Cover
  • If your vehicle is paid off and really has a low value, perhaps just 3rd Party Cover
Thanks for taking the time to read this article. Are you in the market for a quote? Apply now

The iHound