Car Insurance Policy - All You Need to Know About It

It is not cheap to run a car. The taxes, fuel, maintenance, and even the car insurance, each add-up to form a greater expenditure every month. Despite car insurance premiums starting to fall, car insurance premiums still take a bigger bite on your monthly income, especially when you own more than one vehicle. It is therefore important to understand all about the car insurance industry as well as different policies on offer to make sure that you buy the right policy for your car which offers good coverage at the best price.

Firstly, driving a car without a proper insurance cover is itself against the law. In order to restrict more uninsured vehicles on the road, the government has imposed a rule that makes it necessary to insure your car unless it is listed out from the road by the statuary off road notice (SORN). Anyone who does not abide by this law has to pay the penalty, and also there are chances that the car will be seized by the legal authority.

Secondly, insurance is all about covering you from unexpected risks. So the riskier you are, the more expensive your cover would be. Therefore, before you buy a car insurance policy, always look at a number of factors like age, sex, gender, occupation, etc. All this can increase/decrease your premiums. According to the latest stats, age is the major factor that can increase your premiums. If you are of older age and drive less, your premiums will be less but if you are young and frequent driver, you'll have to pay more premiums reason being the older people are less likely to get into accidents than younger motorist. Men are also considered to be a more risky kind than females which is why women's car insurance is typically cheaper than that for male drivers.

Car insurance policy is typically of three types:

1. The third party car insurance
2. Third party fire and theft car insurance
3. Comprehensive car insurance

The third party car insurance is the basic policy that requires minimal legal obligations. It basically covers for any damage incurred by the third party, their vehicle or their property when you are at fault. The third party fire and theft car insurance on the other hand covers you in case your car is stolen or damaged by fire. Then there is a comprehensive car policy that covers all of the above, plus you and your car from any accidental injury or damage, even when it is your fault.

Many motorists choose to buy comprehensive car insurance because the extra-cover gives them additional peace. But if your car is old and not worth that much, third party cover is an absolute option for you. However for younger drivers, the third party insurance is appropriate and can save them considerable money as well.

Before you purchase a policy, it's good to obtain the insurance quotes online to find out the one policy that offers maximum coverage at best prices. When comparing the car insurance quotes online, you must consider for what all things you are being covered for and also look at the overall price of the premiums as many insurers offer different coverage in their standard car insurance policies.

There may be chances that one insurer includes valet service in their standard car insurance policy while other may not. Other common excursions include car service, legal outgoes and dislocation cover. You'll be able to buy these as an add-on in your policy. But be careful while choosing the add-on because it can frequently increase your premium and you'll have to pay for something that you don’t require at all.