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Home Article Best Motor Insurance Types

Best Motor Insurance Types

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Motor insurance can be intimidating, with so many options to choose from. However, protecting your vehicle is easier than you believe, provided you know what type to choose. So how do you know what the best types of motor insurance are? 

We’ve done the research and comparison. Therefore, we’ll present you with the three best options for your vehicle. Read on to learn more about these top picks and what makes them stand out from other types. 

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What is Motor Insurance?

Before diving into the best types of this coverage, let’s look at what it means.

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Motor insurance operates like any other policy, ensuring that you protect your possession in case of an unforeseen event. Since different vehicle types exist, various insurance options are in place. We will discuss these types in the following section.

Types of Motor Insurance

The following are the three common types of motor insurance:

Comprehensive Motor Insurance

If you own your car, it’s good to purchase comprehensive insurance. This type of coverage, like other options, protects you from future financial losses if any event leads to such. As the name implies, this insurance type is pretty extensive, unlike third-party options. 

This option is one of the best for your vehicle as it covers damages and losses due to accidents. Comprehensive insurance also covers medical payments for injuries sustained in an accident regardless of who was at fault. In some states, you can purchase additional protection covering rental cars and roadside assistance while repairing your vehicle. 

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However, be aware that when purchasing comprehensive insurance, deductibles usually apply. As with collision coverage, make sure you understand your deductible before purchasing any policy. Also, keep in mind that your state may require you to have liability insurance. 

It’s also important to note that there are different comprehensive policies. Therefore, be sure you understand which one is right for you before making a decision. For example, some policies offer theft protection while others do not. Some offer full replacement value, while others offer actual cash value (ACV). 

These differences matter because they affect how much money you receive if something happens to your vehicle. When comparing prices, remember that premiums vary based on several factors, including your age, driving record, and where you live. Be sure to ask about discounts, too. Most companies offer them, but you might need to ask about them specifically. 

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Third-Party Only

It is estimated that about half of all vehicles on British roads have third-party only (TPO) insurance. TPO covers your vehicle, and if involved in an accident with another vehicle, any third party injured as a result. It doesn’t cover you or your passengers, damage to your car, or injury to you or passengers in your car. 

Your insurance should also cover medical bills that the third party incurs as a result of the accident. However, note that your insurer will only cover this if your payments are up to date. Like most policies, these payments could be in installments or one large chunk, which is usually cheaper. 

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TPO does cover you in several instances, but it’s not a good option if you reside in places with a high theft rate and vandalism. Plus, it doesn’t cover your vehicle in instances of accidents. If your vehicle suffers from any unexpected events, you’ll have to deal with the expenses yourself. 

Third-Party, Fire, and Theft

This type of insurance policy covers more than third parties only. First, you are protecting yourself from costs if you damage someone else’s car; then, you are protecting your vehicle from fire accidents. However, if the accident was no mistake, you’ll need a reference from the police to back up your claim. 

This insurance policy also covers theft or attempted theft of the vehicle. Using this policy, you cover medical expenses resulting from an accident involving you and the third party. It also deals with cases where you damaged other properties like a fence, billboard, and road signs. 

While this might seem to cover several options, this policy doesn’t help you if your car gets damaged in a road accident. The same applies in cases where you bump into another vehicle and sustain injuries while driving. 

Differences Between Comprehensive and Third-Party Policy

When considering protecting your vehicle, it’s paramount to consider the differences between the major motor insurance types. With the explanation above, telling the distinction between these types is pretty easy. 

First, the comprehensive option covers everything that third-party doesn’t cover. Third-party police only come in handy when you hurt a person, their property, or their vehicle. Any injuries you sustain from this event are up to you to handle. In the case of third-party fire and theft, the coverage includes your vehicle but only in cases of vandalism, fire, or theft. 

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Fully comprehensive cover your vehicle even if the accident is your fault. It also protects you from financial loss if there was a fire incident and theft while covering third-party damage. As a result, this is the best option for most owners as it covers all eventualities as opposed to third-party vehicle insurance. 

Is Vehicle Insurance Important?

Getting insurance for your vehicle comes with a long list of advantages which includes the following:

  • Protects you from the costs of accidents you cause
  • It would pay for damages if your automobile was vandalized or stolen
  • It pays for injuries the passengers might sustain if you get into an accident
  • Vehicle insurance can supplement health insurance
  • It protects your assets
  • This is the best option for businesses that deal with vehicles

Conclusion

The importance of vehicle insurance cannot be overemphasized. Using this policy, you recover from costs that you might incur in accidental cases and other unpleasant events. However, as we have specified, you should note that there are several types of this coverage.

The third-party insurance policy is the minimum coverage you can have before hitting the road. Although this protects another person’s property, it still saves you a lot of costs. On the other hand, opt for the comprehensive option if you want wider coverage. 

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