Vehicle insurance is indemnification for damage to or loss of your vehicle. You pay an insurance company a monthly or annual premium to cover the damages to your vehicle if it is involved in an accident, or to replace the vehicle with one of the same value if it is stolen or written off. The types of vehicle insurance you opt for will depend on the type of vehicle you have and the perils you wish to cover your vehicle for.
What is vehicle insurance for third party?
Third-party vehicle insurance refers to indemnification for damage that you may have caused to other people’s property, which they can legally claim back from you. It is a liability insurance policy. Third-party vehicle insurance is the cheapest form of insurance because it only covers damage you may cause to other people’s property while driving.
This type of vehicle insurance is best suited for those insureds with less expensive vehicles. These drivers may be able to cover the cost to repair their own cars, but not necessarily the expensive car they may be liable for if they cause an accident with it.
What is vehicle insurance for third-party, fire and theft?
Third-party, fire and theft vehicle insurance covers not only the insured’s liability to cover damage to a third party’s property, but also, fire damage to and theft of his own vehicle. It is more expensive than the latter insurance policy because it covers more perils. Covering the vehicle for theft as well, the insurance company may require that it be fitted with improved security.
This type of vehicle insurance is also suited for insureds with less expensive vehicles, but also vehicles that are commonly stolen.
What is vehicle insurance for comprehensive cover?
Unlike the previous two insurance policies, comprehensive insurance covers all the damage to the third party’s property a well as all the damage to your own vehicle. This is compulsory for owners of financed vehicles and a good idea for drivers of high-end vehicles that are expensive to repair.
If you do not have insurance and are considering purchasing it, start here by getting multiple vehicle insurance quotes.