Types of Motor Insurance Policies

Motor Insurance Policies can broadly be classified into three distinct classes of car insurance, namely: Comprehensive insurance, third Party fire and theft insurance and third party insurance only.

Comprehensive Insurance: This type of car insurance, although the most comprehensive of the different car insurance options available, does not really mean what it says. A Comprehensive Motor Insurance Policy will indemnify the Insured against loss or damage to the insured vehicle, and also against the claims of third parties for loss of or damage to their vehicles, or loss of or damage to other people's property as a result of a motor accident on condition that certain provisions as stipulated in the policy have been met.

Be aware that items such as luggage, or contents of a car, may or may not be covered under the policy and if they are covered it is customary for Insurers to place a limit on their liability for these items and there is usually a clause which requires that all such items be safely stored away in a cubbyhole or a locked boot.

In our crime-ridden society it stands to reason that most Insurers insist on some sort of anti-theft protection and the minimum requirements in many instances would be that a vehicle be equipped with an immobilizer. With older vehicles the Insurer may agree to an alarm or a gear-lock and this needs to be negotiated and stipulated in your car insurance contract.

All Insurers will only provide cover for a vehicle if the vehicle is in a roadworthy condition and complies with the legal requirements of roadworthiness. Most car policies place restrictions and limitations on who can drive the vehicle without affecting the Insurance cover. It is important to determine what the position may be under your Comprehensive Policy, if there is an accident when somebody other than you is driving your car. Most car policies limit the number of authorized drivers to the insured and members of their family. Particulars of authorized drivers and any limitations placed thereon will appear on your policy document and should be studied carefully.

Third Party, Fire and Theft: This is a cheaper Policy which indemnifies you only if your vehicle is damaged or destroyed by fire or theft but will not cover the damages to the insured vehicle that are caused by a motor accident. Third party damages will be covered in the event of a third party claim against you and you are held legally responsible for damage to third party property that occurred as a result of driving of the insured vehicle. Although this is a less expensive type of insurance cover many of the limitations and restrictions imposed above will still be applicable.

Third Party only: The Third Party only Policy which is the cheapest offers no protection of the insured vehicle and only covers you against claims which other people may make against you arising from the use of your motor vehicle.

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victor kumar These Motor Insurance policies are also subject to provisions, limitations and restrictions that must be adhered to and it is important that you familiarize yourself with these.