How many types of the car insurance

[Jhon watson]

Today I want to discuss the following topic that how many types of the car insurance and which one is best and why 

[Wino]

Any that don't wriggle out of a claim would be a good start.

Only had to claim once which was back in 2018 when some numpty forgot to put there handbrake on in the carpark at the newly built Co op across the road from our house.

The car rolled across the car park and staggeringly across a very busy main A road and ended up coming to halt after knocking our wrought iron gates over and both the car and the gates hitting our car which was parked on the driveway. It was fortunate that nobody was stood at the bus stop at the end of our driveway too.

 

[pragmatix]

Basically there are 3 types of cover, fully comprehensive, third party, fire and theft, and third party only.

Third party only, as it says only covers damage to other people's property, it's the legal minimum and can be expensive as it's often high risk drivers that have it

Third party fire and theft covers other for damage plus your car is covered for fire damage and theft, again not always the cheapest 

Fully comprehensive covers all the above and damage to your vehicle, it also covers personal items in the car,  all policy's of this type vary as to the extras they cover and the value of them, windscreens are normally covered too, also you often get legal cover too, this type of policy is the best and often the cheapest as it's only the more responsible drivers that get it.

If you are younger driver all will be expensive, also where you live has a big impact on the price you pay.

im lucky I'm an old git so only pay £235 fully comp it was £227 but I moved full no claims bonus. Though in the next year I expect it will go up due to my age I'm just coming out of the insurance age related sweet spot.

 

[Eric Bloodaxe]

2 hours ago, pragmatix said:

Basically there are 3 types of cover, fully comprehensive, third party, fire and theft, and third party only.

Not seen it offered for years, but below Third Party only, there was also Road Traffic Act only cover, which as the name suggests, covers the absolute bare minimum required by law.

I started out with Third Party only 50 odd years ago 'cos it was all I could afford, but found fully comp got relatively cheaper as time went on. As Pete mentions, I have found it cheaper than TPF&T on some sites. 

 

 

[Frembrit]

As Pete says really.

Sometimes (and maybe because I'm getting old too) , Fully comp is cheaper than Third party fire and theft (TPFT) and Third party (TP)...or would only be a few pounds more. 

I've owned my car for over 7 years and has just turned 10 years old, started paying £320 fully comp to now paying £175 😁 and that's with modifications declared. Did a quote for a Focus RS last year and that was about £320. Can't imagine what a young or inexperienced driver would be charged.

[TomsFocus]

Think I was TPFT for the first year, but every year since then it's been cheaper to go fully comp for me!

I've just had to reinsure my old (virtually worthless) car as a second car with 0NCB due to an unusual situation and found that even then it's cheaper to go fully comp for me.

Makes you wonder who's still buying TPFT, let alone TPO.

[Eric Bloodaxe]

1 hour ago, TomsFocus said:

Makes you wonder who's still buying TPFT, let alone TPO.

Yeah, as discussed on here many times, no-one can really work out the reasoning behind some insurance quotes!

When I started out the prices were (logically) cheapest for TPO and highest for Fully Comp, but that doesn't now seem to be necessarily the case for all drivers. I have seen the suggestion that people going for Fully Comp would be regarded as more reliable types and therefore a better risk and those looking at TPF&T or TPO might be considered a bit dodgy😀. Or possibly if they perceive you to be a poor risk they might not quote you an affordable premium for Fully Comp but might offer TPF&T or TPO rather than decline you altogether?

 

 

[pragmatix]

8 hours ago, Eric Bloodaxe said:

Not seen it offered for years, but below Third Party only, there was also Road Traffic Act only cover, which as the name suggests, covers the absolute bare minimum required by law.

I started out with Third Party only 50 odd years ago 'cos it was all I could afford, but found fully comp got relatively cheaper as time went on. As Pete mentions, I have found it cheaper than TPF&T on some sites. 

 

 

I had forgotten  about road traffic only, as you say not seen it for years, was never sure what it would cover as third party doesn't really cover much.

[Eric Bloodaxe]

3 hours ago, pragmatix said:

I had forgotten  about road traffic only, as you say not seen it for years, was never sure what it would cover as third party doesn't really cover much.

Yeah, don't think there would be a lot of difference nowadays as the minimum legal requirements have increased since we started driving, which is probably why TPO is in effect the minimum now.

Found the following on the Chartered Insurance Institute site:

 

Road Traffic Act (RTA) cover

This is the minimum level of cover which is available and provides the cover needed to meet compulsory insurance requirements. Very few RTA policies are issued, as the difference in cover between RTA and Third Party cover is not great. For all practical purposes, the lowest level of cover offered by insurers is Third Party.

The cover provided under an RTA policy includes:

• indemnity for bodily injury or death caused to third parties, including passengers, which must be unlimited in amount
• indemnity for loss of or damage to property belonging to third parties; limited to £1,000,000. This complies with the Motor Vehicles (Compulsory Insurance) Regulations 2007, which were passed in the UK to meet the requirements of the Fifth EU Motor Insurance Directive
• indemnity for claimants' costs and the expenses of handling the claim
• charges for any emergency medical treatment and hospital charges arising out of the use of the vehicle
• the minimum legal cover required when a vehicle is being used in another EU country (or the minimum cover required in the country where the vehicle is kept, whichever is the greater). This meets the requirements of the Third EU Motor Insurance Directive
• liability to persons in the employment of the insured, when travelling as passengers in the course of their employment (but not the driver). This also meets the requirements of the Third EU Motor Insurance Directive. Any legal liability that the employer has towards the driver would be covered under their employers' liability policy.

There is no cover for damage to the insured's own vehicle.

Third party only

The cover provided by a third party only policy includes all the cover under an RTA policy, plus the following:

• cover is extended to apply whilst the insured vehicle is being driven on private land, as well as on a road or public place. Territorial limits apply, which are usually anywhere in the United Kingdom, the Isle of Man or the Channel Islands. Some insurers extend cover to apply to the whole of the EU for a limited time in any one period of insurance
• a limit of £20 million for third party property damage
• indemnity for accidents which occur whilst the insured is driving a car that does not belong to them. Not all insurers provide this extension or only provide it for certain policyholders (such as those over 25 years old)
• indemnity to anyone who is driving or using the vehicle on the insured's order or permission. In practice, it is common for the insured to choose to restrict cover to, for example, named individuals or husband and wife only, in return for a premium saving
• indemnity to passengers, employers or business partners, should they be held responsible for an accident
• legal costs incurred in the defence of a claim
• limited cover for legal representation costs following a prosecution for a motoring offence which may give rise to a claim.

There are specific exclusions that relate to a third party only policy:

• damage to property owned, held in trust by or in the custody or control of any person claiming indemnity under the policy
• liability covered by any other insurance policy.

[pragmatix]

@Eric Bloodaxe Good find, interesting read, thanks.

[DAN@ADRIAN FLUX]

Hi.

If you need any help with insurance at all then please feel free to drop me a line.

Regards,

Dan.