You are no doubt aware that there are three levels of car insurance – fully comprehensive, third party fire and theft and third party. The later is a minimum legal requirement but, apart from that, is it adequate to meet your requirements? Well, that depends upon a number of factors so let us have a look at some of them in a little more detail.
Firstly, let’s look at what third party covers. It will provide cover should you be involved in a car accident for any damage caused to third parties such as people, property and other vehicles even if the accident were your fault. However, what it will not cover you for is damage to yourself on your own car.
One of the major reasons why someone would choose third party car insurance cover is because it is usually cheaper to arrange such cover and in the current financial climate, with many people having to contain their household expenditure, this is an important factor. This may sound fine but could it not be a rather short sighted approach if your car were involved in an accident or were stolen as how would you go about replacing the car if it were so badly damaged that it had to be written off or pay for the repair costs?
If your car were only worth a few hundred pounds you may not feel it is worth arranging fully comprehensive car insurance that would have covered your car for any damage even if the accident were your fault. After all, the premium for such cover may even exceed the value of your car.
However, if your car is worth thousands of pounds, is third party car insurance really a sensible thing to arrange as it would not provide any cover for your own car?
So, as you can see, there are a number of things to consider when deciding if third party car insurance is adequate. The decision is yours.