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Different Types of Car Insurance Coverage Dissected

by Amy Walters

Choosing car insurance can be confusing, especially the first time you start shopping around and getting free auto insurance quotes.  There are lots of different policies, and lots of different levels of coverage, and finding the right one for your needs can be a challenge.  If you’d like to know more about the different types of coverage, read on:

Third Party Insurance
Third party car insurance is the bare minimum form of coverage available.  It ensures that if you are involved in an accident that damages another person or their vehicle or property, you are covered for the damage you do.
Third party insurance does not protect your vehicle from the acts of others, however. So, if your BMW is stolen or damaged by fire then you won’t get anything from your insurance company.  This means that if you have a desirable vehicle that you lovingly service and care for, you should consider a higher level of coverage.  Third party car insurance is best for old knockabout vehicles.

Third Party, Fire and Theft
This level of coverage ensures that if your vehicle is stolen or damaged by fire, you will be protected.  Third party, fire and theft insurance costs more than plain old third party insurance but it isn’t always the cheapest policy available.  Shop around and compare a few third party fire and theft policies with comprehensive policies to see which one is cheapest in your circumstances.

Comprehensive Car Insurance
If you’re going to be servicing and caring for a flashy sports car or a luxurious BMW, you should make sure that it’s covered for as many eventualities as possible.  Comprehensive car insurance coverages you for most problems, but there will be some exclusions.  Make sure that you understand exactly what you are and are not covered for so that you can find the policy that best suits your needs.

Add-Ons For Insurance
When you buy a comprehensive policy, you usually have the option of adding on some extra coverage – such as breakdown coverage or coverage for legal expenses.  Sometimes, this coverage is worthwhile, but in some cases it’s cheaper to buy a separate breakdown policy from a third party.

Before you commit to anything, spend some time shopping around and comparing prices.  Don’t be tempted to buy all your coverage in one place just because it’s convenient.  You won’t be needing to change your insurance or your coverage that often (but it does pay to compare prices each year when it comes up for renewal), so the “hassle” of having the policies with different providers isn’t as great as the salesman might make it sound.

It Pays to Shop Around
The importance of shopping around should not be underestimated.  You may find some great deals in unusual places.  Don’t forget to consider your bank or your home insurance provider, as you may get discounts for having more than one service with the same provider.

In addition, look at insurance companies that offer new policy types, such as “pay as you drive” insurance that rewards you if you don’t tend to drive at night or during the rush hour.  For occasional drivers, this kind of policy could save you a lot of money.

This post was written by James Harper on behalf of Main Dealer Discount who can help you save money on BMW servicing. For more info on how to save money on BMW servicing, please follow this link.

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