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Types of Car Insurance to Consider

It is no secret that motoring can be incredibly expensive. In addition to the cost of purchasing an automobile, a motorist must also think about the running costs which include fuel, road tax, maintenance cost and insurance. Insurance is a crucial part of motoring as it provides important protection in case something was to happen. There are also a few important types of insurance that all motorists need to consider.


Car Insurance

First, you have the obvious car insurance which is a legal requirement. Within this type of cover, there are three separate levels to choose between. Third-party only is the most basic form and will cover damage to other vehicles, injury to other people or animals and damage to property. The next type is third-party, fire and theft – this has the same as the above but with protection if your vehicle is stolen or catches fire. Finally, comprehensive covers all of the above with a few extras such as cover for damage to your own car, windscreen damage etc.


GAP Insurance

Another type of insurance which not every motorist is familiar with is GAP (guaranteed asset protection) insurance which is an optional policy. If a motorist were to have their vehicle written off, their car insurance policy would only pay for the current market value of the automobile. Due to depreciation, which can be over 50% after three years, this could leave a motorist short by thousands of pounds. A GAP insurance policy from a specialist like ALA will cover the difference between the insurance payout and the original price paid or the amount outstanding on the finance agreement. Some deem this an unnecessary form of cover, but accidents occur all too frequently and a vehicle will also be written off when it is stolen and never recovered.


Extended Warranty

A motorist may also want to purchase an extended warranty if the manufacturer’s original warranty has expired. This will cover the cost of any electrical or mechanical repairs which could also save the motorist a huge sum.

These are the main types of cover that a motorist needs to think about when purchasing an automobile. As with any type of insurance, it is worth shopping around to find the best deals and most flexible level of cover – this will usually come from specialist insurers. It is better to be safe than sorry when it comes to insurance and especially motoring which can be dangerous and expensive.

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