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Type of Car Insurance covers you can buy

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When you contact a car insurance company to buy insurance, you will discover that all their car insurance products fall within three main categories. The names of the specific insurance product may vary. But they are all based on three broad classifications

Comprehensive Car Insurance

The comprehensive car insurance policy provides an insurance cover against the widest range of risks. The risks covered under the comprehensive policy includes theft, fire, accidental damage, and total loss.

Third Party, Fire and Theft

When you cause an accident, a third party fire and theft policy will meet the costs of damages to other people property. If someone is injured or loses his life as a result of the accident, the cover will be used to compensate his family. The cover also protects your car from fires caused by incidents such as accidental malfunction in the car. You insurer will also compensate you in case your car is stolen (or components of it if such enhancements are included)

Third Party

A third party cover is the most basic insurance cover. This protects third parties only in the event your car is involved in an accident. It is also the cheapest cover. Third party covers are generally not advisable for personal cars especially if they are high value cars since you can lose a substantial sum should you lose the car to an accident or through theft. It is nonetheless an option for any vehicle owner who has a cash flow problem.

Most insurance companies have developed special enhancements that you can add to your cover if you want addition protection from certain risks. Some of the common enhancements are as follows

  • Personal Accident Cover- Most comprehensive insurance covers give you the option of bundling your car insurance cover with a personal accident cover at a discounted rate. Car insurance covers usually don’t cover the owner of the car (passengers are usually covered though).
  • Terrorism cover– An enhancement that covers you from losses and liabilities that can result from terrorism. The Westgate mall attack saw some cars damaged. Owners who had terrorism covers were compensated
  • Excess Protector-This enhancement removes excess requirements when you make claims (Excess is an amount of money an insurance company will require you to pay whenever you make a claim. Its purpose is to discourage frivolous claims)
  • Stereo Cover– Some insurance companies include a cover for car stereo, and will replace your car stereo in case its stolen
  • Windshield cover-The windshield cover protects the car owner from the liabilities that would arise from accidentally broken windshields

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