There are many car insurance plans available in the market. The type of motor insurance you should sign up for depends on the car you drive and the personality you have.
It is obvious that the owner of a brand new Porsche 911 will have very different needs from an old Ford Focus. Fortunately insurers are creative. And in order to remain competitive in the financial industry, they will have to think of many different insurance plans that suit every need.
Whether you are driving a high end luxury model or you are just an ordinary folk driving a normal sedan like everyone else, there will be an insurance coverage for you.
In general, there are 3 types of insurance. First, there is comprehensive coverage. This type of coverage is meant to protect your pocket from third party claims as well as own damage claims. With this type of insurance, you are able to purchase many different types of riders that can customize your car insurance to your particular needs.
For example, you can buy an NCD protector. This allows your NCD to remain at 50 percent even though you have made claims in the past 12 months. Otherwise your NCD will have dropped to 20 percent. In this case, 30 percent of your NCD would have been lost and you will end up having to pay more for your insurance.
Another rider you can take up is Loss of Use Benefit. Very often, you will face a lot of inconvenience if your car is sent for repairs. This is because without a car, you are not able to move about freely as before. And it becomes very inconvenient to even get to the place where they repair your car. With this type of rider, a replacement vehicle will be made available for you. Or the insurer will arrange for a rental car to be sent to you. If there is no spare vehicle available, the insurer will compensate you with a daily transport allowance so you can go to any car rental company to pick up your favorite car.
There are many other riders you can go for. A car insurance specialist will be able to advise you carefully and make the right recommendation so you can have a peace of mind whenever you are behind the wheel.
The other two types of car insurance are Third Party Fire and Theft, and Third Party Only coverage. These insurance only cover you against any claims made against you by a third party. You are able to compensate for losses such as vehicle damage, injury and death as well as property damage.
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