Trying to understand car insurance coverage can be quite difficult for those that have no real experience of doing so and this does mean that the information that follows may prove to be useful if you are in the process of looking at getting a new policy. The truth of the matter is that the basics of car insurance are often quite easy to understand and these basics will now be looked at in more detail.
The first thing that you should know is that it is a legal requirement for you to have some kind of insurance before you go on the road. Failure to do so can lead to all kinds of penalties depending on where you live and the one thing that you can be sure of is that the fine for not having it will be a lot higher than the costs of the premium for a single year.
That being said, there are three basic types of coverage that you should be aware of with these types being third party, third party fire and theft, and finally comprehensive cover. Out of the three options, the cheapest is third party with the comprehensive cover being the most expensive as it does provide you with more things for your money; however, it is still a good idea to look at the different options individually.
With the third party you really are just getting the absolute minimum coverage in order to get on the road. Basically, you will be covered for any damage or injuries inflicted on a third party, which is another driver or the owner of something, should you have an accident, but the main thing to be aware of with this cover is that you will not be covered for injuries or damage to yourself or your own vehicle.
With the fire and theft option you will find that most of it is the same as the third party cover, but the main difference is that you are also going to be covered in the event of a fire or your vehicle being stolen. This does just give you a bit more protection should something go wrong and in all honesty this should be the absolute minimum cover that you should look at getting.
The final option is comprehensive cover and this means that both you and the third party are covered for any damage or injuries as well as protection against fire, theft, death, and even windshield replacement and you can see why this type of cover has to be the most expensive. You also have the option of including things such as breakdown recovery as well as legal protection, but these are added extras and do come at a premium.
That is how to understand car insurance coverage and as long as you keep these basics in mind you should have no problem in getting the correct policy for your vehicle. All that is then required is for you to spend time shopping around and checking out what the different companies plan on charging you and do take your time doing so due to the money that can be saved through simply being careful.