Pretty much everyone knows that fully comprehensive car insurance costs more money than buying third party car insurance. That being said many people are surprised at how little difference in cost there is between the two. For some policies you may only see an increase of £30 to £40 for fully comprehensive cover. But what are the advantages to 3rd party and fully comp?
Third party fire and theft car insurance covers you for exactly what the name of it reads. If your car gets stolen or set on fire then you are covered. In addition to this if you were to crash into someone else’s car then the cost of repairing that persons car would be covered, however the cost of repairing your own car would not. If you are driving a car that is let’s say worth £100 then it may be beneficial to purchase third party insurance as your insurance excess would be more than the value of the car and the insurance company would write off the car if it was ever in a crash.
Fully comprehensive car insurance covers damage to third parties as described above, plus loss of or damage to your own car, whether caused by an accident, vandalism, fire, theft or damage you do to your own car. This means if you accidently crashed your own car you would be covered however that is not necessarily to say that it would be worth making a claim. If your car is worth £1000 and your insurance excess is £500 and the increase to your yearly premium is £400 then it would be obvious that you would be vastly out of pocket when your insurance is next renewed. If for example you drove the car into a tree it would be a better idea to sell the car to a scrap yard and buy a new one.
In summary if your car is cheap then it is better to get third party however if your car is worth a lot of money then it would be worth getting fully comprehensive insurance.