Comprehensive vs Third Party: The Difference

One of the inevitable expenses of owning a motor vehicle is insurance – something you know you need but hope you never have to claim on. When searching for quotes and comparing policies, it is easy to get overwhelmed by the choices or swayed towards the cheapest cover on offer, but before making a decision it is vital that you are completely aware of what different types of vehicle insurance covers you for. A rash decision at this point could prove to be very costly in the long term.

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What Does Third Party Insurance Cover?

This is the minimum amount of cover you must have by law, and although it may sometimes seem like a cheaper option, it doesn’t actually cover very much, and not all insurers even offer this option anymore.

Domestic car drivers with third party only insurance are covered for compensation to passengers inured while travelling in the driver’s car and the costs of repairing a vehicle the driver causes damage to. It never covers repairs or other costs on the insured car or if the vehicle is stolen or burnt out. Motor trade customers will have a similar experience, with their own and their customers’ vehicles being exempt from damage claims, but any third party involved will be compensated.

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Arranging additional motor trade insurance from a specialist company such as is a very sensible idea to cover all bases.

What Does Comprehensive Insurance Cover?

As the name suggests, this type of insurance covers most possibilities, including all third party costs, damage caused by fire or if vehicles are stolen, personal injuries an often extra bonuses such as uninsured driver cover. Some comprehensive domestic and motor trade policies offer other extras such as accidental damage, contents, windscreen and tyre cover.

Making the Right Choice

Ironically, even if third party insurance is available, it is often cheaper to go fully comprehensive. And even if third party insurance does seem like a cheaper deal, it only takes one claim and it will cost you a lot more than the additional payment saved.

When looking for insurance for the motor trade, it makes sense to protect yourself, your customers and ultimately your business by having more than adequate coverage to deal with all possibilities, no matter how unlikely they seem.