When considering car insurance people often adopt an all-or-nothing stance. If the premiums are out of reach for a fully comprehensive plan, then the quest to get cover is often abandoned. While the whole enchilada is the best way to go, your next best option is third-party cover.
Comprehensive vehicle cover is the way to go because it covers you for everything barring your car being trampled by dinosaurs. However third-party cover can also prevent a lot of headaches if you are involved in an accident. A cheaper policy like Third Party will not cover you for accident damage on your car but it will cover the other person's car or property should you have an accident and it has been proven that it was your fault.
So for example, if you bump into someone’s car in a parking lot while they are getting into their car and they injure their foot; third-party insurance would cover the cost of damage and medical expenses. Alternatively, if you swerve to miss a pothole and you crash through a fence, the policy will pay for repairs to the fence.
Another alternative policy to consider is third-party, fire and theft. As well as third-party damage, third-party fire and theft will cover the cost of replacing your car if it’s stolen, catches on fire, or is damaged as the result of an attempted theft; for example, a stolen radio or broken windows or doors.
Don’t assume that the limited policies are substantially cheaper. Get a quote for all types of policies before you dismiss the fully comprehensive option.
Third-party cover could also be considered if you drive a very old car that is cheap to repair or replace, or if you drive very infrequently and have no instalments on it. A new or high-end car will cost you a small fortune to repair or replace in the event of an accident. It is worth cutting down on your fast food bill to afford the extra premium. As with all policies read the fine print so you are fully aware of the extent of your cover.
