Archive for the ‘Insurance’ Category

Okay so now that you got yourself a brand new car, you might want to consider the different levels of insurance you can have. We have put some information together and made a guide to different insurance levels which might help you decide what kind of insurance you’d want to get for your car. In case you unaware, there are three insurance types that are available; the Third Party Only, Third Party Fire and Theft and the Fully Comprehensive.

It is a legal requirement for a driver to drive in the UK with at least a Third Party Only insurance. So what exactly does the Third Party Only (TPO) insurance cover? TPO ensure that the third party involved in the accident would be protected. So if one with TPO insurance were to crash into another car then his liability to the other driver will be covered by the insurance. This is of course if the accident was proven to be the insurance holder’s fault. As its name implies, this type of insurance will not cover for the damages that the holder will sustain.

TPO will cover for any injury or even death caused to the third party. This is of course if the insurance holder is liable for the accident. Also remember that TPO does not cover for your car in the event that it will be stolen or be burnt in a fire. In this case, you might want to consider upgrading to TPO, Fire and Theft. TPO Fire and Theft is the same as the Third Party only insurance type but it covers for your car if it will be stolen or burnt due to fire.

Aside from the TPO insurance cover, you also have the option to get a Fully Comprehensive car insurance. This type of insurance is most suitable for cars pricing over £1,000. Also, cars costing over £5,000 should have this type of insurance cover. It covers the same as the TPO Fire and Theft plus the Accidental Damage. Accidental damage is damage done to the insurance holder’s vehicle. These policies also include personal accident cover, wherein bodily injuries to the driver will all be covered.

Take note though that some insurance companies will push on the TPO cover and not the Fully Comprehensive or TPO, Fire and Theft. This may be due to the car being over thirty years old or older. In this instance, it would be hard for them to replace car parts that may no longer be readily available and replacing these parts would be very expensive for the insurance company.