Three types of car insurance usa 2021

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Over-50s car insurance explained | Plus 10 ways you can save

Three types of car insurance usa 2021

The glamorous world of car insurance we appreciate there are probably a hundred other things you’d want to do with your time then shop for car insurance

But it’s an essential job that anyone with a car has to do there are three main types of cover third party third-party fire and theft and comprehensive cover 

a quick rundown of what each cover includes some information on pay as you go and temporary car insurance a little lesson on access as well as some extra cover options that might suit your driving style third-party cover is the minimum legal requirement for drivers

In the uk if you’ve got to car you’ve got to have it unsurprisingly then third party is the most basic b form of cover if you were to get into an accident this cover will protect you against injuries to others both in your car and other vehicles as well as any legal claims made against you

However it will only protect you against damages to someone else’s car or property not your own it’s a popular choice for first-time drivers and those on a budget but be aware that third-party cover does not protect you

If your car was stolen or destroyed by fire which frankly would be an absolute nightmare of a day third-party fire and theft is the second tier of car insurance it works much like third party but you guessed it also includes cover for theft and fire damage

 

However it still doesn’t cover you against damages to your own car if you were to get injured or if your car is written off entirely so if you were to get into an accident you could end up forking out a lot of money to cover your own costs

When it comes to comprehensive cover kudos to the marketing team for thinking of a dynamic cutting-edge name for this top tier of car insurance not all heroes wear capes but some should have given the naming round table

just a couple more minutes to be fair comprehensive cover does what it says on the tin protecting you against fire and theft personal injuries and injuries to people in your car and other vehicles as well as damages to both your car other vehicles and property plus the cost of any legal claims with comprehensive car insurance

You can get in as many accidents as you like kidding as well as the big three you might also have heard of pay as you go and temporary cover and while these two sound the same they’re actually quite different forms of cover pay as you go is strictly usage based so you only pay for the miles you drive

It’s great for someone who regularly uses their car but only for low mileage journeys like the school run or trips to the supermarket despite its name with pay-as-you-go insurance your car is still covered even when you’re not driving it it’s just that the cost of your premiums are calculated based on your mileage and

This can be done in one of three ways so the first is by tracking your miles this involves having a small device fitted into your car similar to a black box that tracks your distance the second is by an hourly rate so again using that same device to track how long you’re in the car for the downsides to this method though are that you could end up paying extra

If you get stuck in a traffic jam and it also incidentally incentivizes you to drive faster which isn’t ideal the third way is by estimating your miles so if you regularly do the same journeys and you know the exact distances this might work for you otherwise you could end up getting stung if you overestimate your mileage as some insurers won’t give you refunds on unused miles temporary car insurance then is purely time based

It allows you to insure a car from one hour to 30 days at pop and it usually acts as a top-up to a pre-existing permanent policy so for example you have a car that you pay a yearly premium on but then your brother comes to stay for the week so you would add seven days worth of temporary cover to ensure that he’s protected during his stay temperate

Car insurance does not take usage into account so whether your brother then uses the car once 17 times or not at all you’re still going to pay the same amount whether you need temporary or pay-as-you-go car insurance will largely depend on how much control you want over your premiums how far and how often you drive and whether you’re the sole driver of the car 

 

There are two main costs associated with car insurance the first is the cost of your cover this is your insurance premium and is calculated based on your personal circumstances the type of car you drive as well as your driving track record the second is your excess your excess is a preset amount that you have to contribute towards any claim made against your policy

 

So if you’ve just crashed your brand new bentley and the claim is a thousand pounds and your excess is 200 pounds you’ll have to stump up the 200 quid before your insurer pays out the additional 800. most insurers will have a minimum compulsory excess amount that you have to pay and typically will let you raise your excess so that you can lower your premiums just make sure you have the budget to make these out of pocket payments

 

Before you do raise your excess bentleys ain’t cheap honey even with comprehensive car insurance you can still add extra levels of cover to your policy so if you’re someone that’s always getting into car accidents well you probably shouldn’t be on the road but if you’re someone who thinks they could benefit from a more customized form of cover you might want to consider

 

Adding some of these optional extras to your car insurance most of them are self-explanatory but when thinking about whether any of these are right for you you should consider not only what kind of a driver you are but also where you drive and what you need your car for for example

 

If your car is essential to get to work or take the kids to school courtesy or hire car cover could be useful to make sure you’re never stuck without a set of wheels as a former country girl i can vouch for windscreen cover if you’re driving down a lot of gravel track or country roads acorns might look all cute and rustic

 

But they can do some serious damage and don’t even get me started on conkers with personal accident cover you and your partner are covered should one of you suffer a serious injury as a result of a car accident with this type of cover your insurer would help to pay out with medical treatments lost income and recovery costs protected no claims means you get to keep your no claims bonus

Even if you have to make a claim however to purchase this type of cover you’d usually need about three to four years of no claims shopping for car insurance is one of those thankless tasks that all car owners have to do there are loads of providers out there and choosing the one that suits you will largely depend on your personal circumstances

 


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