Remember when you passed your driving test, and went on your first road trip? Having the freedom of being able to drive is a great feeling. However, you should make sure you’re protected in case something happens to you – whether it’s a tiny scratch or a major accident. Having a personal injury lawyer and car insurance will most likely ease your concerns.

Your car will be one of the most expensive purchases you will make, so having insurance will give you the peace of mind you need in case something happens to your prized possession. There are different options available – which you’ll need to be able to drive legally on the road – so here’s what you can choose from.

Third-party coverage

This is the minimum amount of coverage that you can legally have. This insurance covers other people, but not yourself. So, if you hurt someone or damage their property, they’re covered; however, you will have to pay for the loss of your own car if it is stolen or damaged.

You may find this is the best option for you if you don’t have a no-claims bonus, your car has a low value, and you can afford to buy another if it’s involved in an accident, or you live in a high-risk area.

Third-party, fire, and theft

This is like the third party; in that you will have to pay if your own vehicle is damaged. Yet if your car has been stolen or been damaged by fire, you will be covered for the repairs or a replacement.

Fully comprehensive

This is the complete level of cover you can acquire for your vehicle. Not only will it give you financial protection from fire, theft, and any damage to third-party property if you’re involved in an accident, you’ll also have coverage for accident damage on your own car.

Many policies will also include cover for items such as personal possessions, personal injury, and windscreen damage. If you’re looking to get fully comprehensive cover, but you only need it for a few days, or just a few hours, there are policies for short term insurance that you can select. It means you will have the best coverage available to you, even if you’re moving home or borrowing a friend or family member’s car for a special occasion.

GAP insurance

This insurance, which stands for Guaranteed Asset Protection, can be bought in addition to your existing car insurance. It is usually aimed at newer vehicles because they have higher rates of depreciation, but some insurers will offer it for second-hand cars as well. If a car is written off, lost, or stolen, GAP insurance bridges the gap between the settlement figure and price originally paid for the car.

There are five categories of GAP insurance:

● Finance – pays outstanding finance
● Return to invoice – covers the shortfall between the original cost and what an insurance company will pay under the policy if written off
● Vehicle replacement – you can get a new version of your lost car with the same specification
● Return to value – tops up the value of the car when it was bought
● Lease – cover the remaining contract costs and early settlement fees if a leased car is written off or stolen

Published: 2020-02-29 13:42:50