In the current economic climate many households are struggling to pay their regular bills so any cost savings that can be made are often most welcome. So, what can be done in this respect as far as your car insurance premiums are concerned?
Well, you are no doubt aware that there are three types of cover available – third party, third party fire and theft and fully comprehensive car insurance. The first type is the cheapest, the most expensive is the last type and the one in the middle costs somewhere between the other two.
Do you need to have any car insurance if you are driving on roads in the United Kingdom? After all, if we had been discussing life insurance the answer would have been no – it is optional. In the case of car insurance it is a legal requirement that you have at least third party car insurance in place.
Third party covers you for any damage caused to another vehicle, someone else’s property or other people should you be responsible for an accident whilst driving your own vehicle. It does not provide any cover for your own car or for any injury you suffer. So, if you were driving around in a brand new car costing many thousands of pounds and you had an accident that was deemed to be your fault your third party car insurance would not pay out and you would be responsible for the cost of any repair work or for a replacement vehicle.
However, if your car is worth but a few hundred pounds you need to ask yourself the question if it is worth bothering to go to the expense of having anything other than just third party cover. In some cases the cost of fully comprehensive cover could be more than the car is worth. So, you could just consider having third party cover.
Ultimately, it has to be your decision.