With the rising cost of motoring insurance, finding the cheapest premiums for young drivers often involves sacrificing the level of cover in order to make them more affordable. Insurance companies view teenagers and young drivers under the age of 21 as being an increased risk due to the higher incidence of accidents involving them. So what are the different grades of insurance and what effect do they have on costs.
If you would be unable to afford to replace your car in the event of serious accident damage then the comprehensive policy is what you should choose. Comprehensive cover will cover you for damage to third parties caused by an accident that was deemed your fault as well as damage to your car plus any legal actions that might be taken out against you. Be careful when you are considering your options because some comprehensive policies are more comprehensive than others. There are often extras tagged on in some policies that are missing in others. Some of these include;-
- Cover for windscreen damage repair
- Third party cover to drive vehicles belonging to other people
- Third party cover for driving in Europe
- Roadside assistance
Policies will give you some or all of these as standard so check check to see what those you are considering offer as standard extras. Always scan the documentation for terms and conditions and read them carefully. Look out for the word “exclusion” because this is almost always followed by some sort of get out clause weighted in favour of the insurance company.
Third Party Fire and Theft
Taking the option of reducing your cover to third party, fire and theft is not something to be considered lightly, especially if you have laid on a substantial sum on the purchase of your car. What you are effectively doing is agreeing that the insurance does not cover the damage to your car in the event of an accident. If you have serious accident you are committing yourself to the expense of having your car repaired or in some cases basically consigning it to the scrap yard. What is covered by the policy is any damages claimed by a third party as a result of an accident that is deemed to be your fault. You are also covered if your car is stolen or damaged by fire
Considered to be a cheaper option because it covers you for less, it should be noted that the cost of this type of insurance has gradually increased to the point where the difference in price between this and comprehensive insurance does not represent a significant saving. If you use a price comparison site to compare premiums, you may be surprised to find that third party fire and theft premiums quoted by some companies are higher than fully comprehensive policies quoted by others.
Third Party Only
In the UK, third party cover is the minimum covered allowed as defined by the Road Traffic Act. This is often chosen by young people looking for the cheapest car insurance . What this actually does is take away any obligation in the part of the insurance company to cover you at all. The only thing it covers is third party damages resulting from an accident that is your fault.
So these are the main types of insurance policy available to enable young people to drive a car on the road. The fact that young people are driven to downgrading cover by spiralling costs is a matter of great concern. If possible young people should always try to go for the best level of cover possible and use a comparison site because there may be a variation of hundreds if not thousands of pounds between the cheapest and the most expensive premiums.