With car insurance premiums at a record high, there is no point in paying for cover you don’t need. We regularly talk to consumers who are looking for car insurance cover that may not be necessary.
Many people are confused about the difference between third party & comprehensive cover. Third party only cover is the bare minimum legal requirement to be on the road and covers all third party costs in the event of an accident. Third party fire & theft covers all third party costs and also damage to your own vehicle caused by fire or theft. Comprehensive cover covers all third party costs and also damage costs to your own vehicle in the event of an accident.
We have noticed an increase in consumers insuring their vehicles comprehensively when they don’t really need to. If your vehicle is valued at less than €1k, invariably the cost to repair the vehicle will be more than the vehicle is worth so the insurers will deem it an economic write-off in the event of an accident. After a deduction for the excess (typically €250) they might send you a cheque for €500 for a vehicle you valued at €1k. You’ll then have a claim on your policy which will lead to a premium increase from your current insurer and limit your ability to go elsewhere at renewal.
Traditionally extras like breakdown assistance and windscreen cover have not been standard with third party policies but some providers are now offering these extras with such levels of cover. Also, it’s now possible to protect your bonus on third party policies with some insurers.