Blog: April 29, 2022

Different Car Insurance Types and Meanings

Have you ever wondered about the different types of car insurance options available and what they might mean for your business? There are countless different types of car insurance, and considering these carefully may help you find the most suitable and valuable option for your business as a result. So, with this in mind, our experts are on hand today to help you find out more about the different types of car insurance plans – and, critically, what these might mean for your vehicle overall.

Why Car Insurance is Vital

Before we go any further with today’s guide, we’ll start with a crucial first question: why is car insurance so important for your vehicle? Well, there are many different reasons why having the right type of car insurance is so important for your driving efforts, which may include the following:

  • It’s a legal requirement! If you’re driving a car, you need to have car insurance on that vehicle to use the roads legally. Without car insurance in place, you cannot legally drive on any public roads; what’s more, your car insurance needs to be fully paid up and active, which means that an expired car insurance policy will not be suitable to allow you to drive out on the roads.
  • It provides financial protection! If you get into an accident while driving, you could be liable to pay for any damage done to other road users’ vehicles. In some cases, you may even be liable for injuries they’ve incurred. Of course, the costs of this could be extortionate; write off a brand new vehicle in an accident, and you’ll likely be looking at a very minimum value of £20,000. Most of us don’t have that sort of cash lying around; luckily, your insurance should be there to pay up and ensure you’re not out of pocket.
  • It’s not always your fault. In many cases, people scoff at the importance of car insurance, as they are safe drivers and aren’t likely to cause an accident. Unfortunately, this is too generalisation since it often doesn’t matter how safe a driver you might be. Often accidents can occur due to others’ reckless driving – so ensuring you have insurance in place for when an accident wasn’t your fault is still vital.

The Different Types of Car Insurance You Should Know 

At this point, we’ve considered why taking out car insurance is so vital for your vehicle. But what types of car insurance are available for you? This decision often depends on the type of car you’re drying and the insurance plans you need.

We’ve outlined some of the most common types of car insurance as follows to help with this decision – but remember! If you need any further advice on the optimal type of car insurance for your vehicle, please don’t hesitate to contact our experts here at Arkwright Insurance Brokers.

1. Third Party Insurance 

The most basic minimum insurance policy needed by law is third-party car insurance. This insurance policy covers damage to your vehicle, a third party’s vehicle, and injury to other drivers and road users. As standard, it doesn’t provide additional protection. Still, many third-party car insurance policies now come with an additional extra for fire and theft protection.

2. Fully Comprehensive Insurance

Fully comprehensive is one of the most common types of car insurance cover, and it’s what the name would imply. A fully comprehensive car insurance cover protects the widest number of scenarios and is the highest level of protection for your vehicle. Of course, unsurprisingly, you’ll pay more for this high standard of service in many cases. But, with so much protection in place, it’s definitely a worthwhile investment for many drivers.

What does fully comprehensive car insurance cover? Well, this naturally varies from provider to provider. However, most fully comprehensive car insurance policies cover your vehicle, as well as personal accidents, legal protection, third-party damage, breakdown and courtesy car cover, and more. As such, if you’ve been looking for car insurance that will genuinely look after you, fully comprehensive is the way to go.

3. Short-Term Insurance

If you only need car insurance for a short period, short-term car insurance policies might be ideal for you. There are numerous reasons why you might need short-term car insurance; for example, perhaps you need to temporarily drive a friend’s or loved one’s car while they’re out of action. Or, perhaps you only need another month or so on your insurance policy before switching to a new car. Whatever the case might be, short-term car insurance could be ideal for you in this regard.

One of the key perks of short-term car insurance is that it provides everything on offer (usually) with comprehensive car insurance – but for a slightly higher rate. While you’ll need to pay a little more than usual, it prevents you from being tied into an insurance plan you’ll only need for a month or two, making short-term car insurance much more affordable in the long run.

4. Self-Drive Hire Insurance 

The fourth type of car insurance plan you may have considered is self-drive hire insurance. This type of insurance policy is highly important for businesses that hire out vehicles to members of the public. As such, if you’ve been planning to start a new hire car business model, always ensure you’ve got self-drive car insurance in place.

These insurance policies typically provide fully comprehensive cover for drivers between the ages of 21 and 75 years and often also cover theft. However, the specific terms still depend on your chosen self-drive hire car insurance plan, so be sure to talk this over carefully with your insurance broker before deciding on the optimal insurance policy for your needs.

Car Insurance

For The Best Car Insurance Quotes, Call On Arkwright Insurance Brokers

Ensuring your car for financial protection through car insurance is massively essential. Not only is it a legal requirement to have insurance when driving a vehicle, but it’s also critical to ensure you’ve got the right type. From business car insurance to electric car insurance, multi-car insurance to touring caravan insurance, there’s a solution for every driving type – but this can make the decision tricky.

Luckily, though, our experts here at Arkwright Insurance Brokers know all there is to know about finding the most effective type of insurance plan for your unique requirements. So, if you’re ready to find out more about the different types of car insurance available for your vehicle or any of the terms used, please don’t hesitate to contact our expert team today. We’re here to help and will be happy to provide you with a free car insurance quote!

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