Understanding comprehensive insurance vs third-party insurance
Besides being essential to you getting around, a car is a big purchase that will take up a fair bit of your budget each month. If something happened to your car, it could cause serious disruptions not only to your lifestyle, but also to your bank account, which is why it’s important to have insurance and protect yourself against such unexpected costs.
While insurance can seem complicated and balancing the right amount of coverage with your budget can be tricky, understanding the different types and how the coverage works, will help you choose the right one for your needs.
Comprehensive insurance
Comprehensive insurance provides the most extensive cover, protecting you from damages and losses when your car is involved in a crash, there’s a fire, it gets broken into or stolen, or if it’s damaged due to a natural disaster. What makes it all-inclusive is that it covers both you and the car or property you might’ve damaged.
It’s the premium option as it gives you full protection and the widest range of cover, regardless of who or what caused the damage or loss. Plus, it’s a requirement if you want to finance a vehicle with the bank.
Third-party and Third-party, fire & theft insurance
These insurance options limit your cover to damage caused by specific events, such as theft or fire, or if you’ve caused damage to another person’s (the third-party) vehicle or property. Therefore, it doesn’t cover the damage to your own car, only the cost of fixing the third-party’s property. It’s an economical option that gives you selected cover so that you’re not completely out of pocket if there’s a mishap.
Third-party with theft and fire covers you for damage you’ve caused to someone else’s vehicle or property, but also if your car is stolen or hijacked or involved in a fire.
What does it cost?
Once you’ve decided on an option, it’s easy to get a quote for vehicle insurance. Your premium will be tailored to your needs and calculated based on your age, driving history and risk profile, as well as the type of vehicle and the excess (the amount of money you agree to pay before the claim is processed) you choose.
Ready to get covered? Our car insurance specialists can help you get a quote with the right cover for your needs. Get in touch with us today.