One of the most common questions that insurers are asked is ‘What type of car insurance should I get?’. As every driver's needs are different, the type of car insurance you should get will depend on your specific needs. To help you decide which policy you need, we will take you through the differences between third party and comprehensive car insurance policies in this article.
What is third party car insurance?
Third party car insurance covers your legal liability to others as a result of an accident that’s your fault. This level of cover doesn’t insure you for the fire or theft of your car, nor will it cover you for damage to your car.
Let's look at an example: Keith is reversing out of a parking space. There are several vehicles parked around him. He misjudges the distance between his car and the one directly behind him and he reverses into it. The other car suffers broken headlights and a dent in the bumper. His car is also damaged; its tail lights have been broken and the rear dented. He has third party insurance so the insurance company will cover the costs of the damage to the other car, but Keith’s car will not be covered.
What are the benefits of third party insurance?
Having third party insurance is a legal requirement in Ireland. So having it will ensure you are legally compliant from an insurance point of view and it will also ensure that any third parties involved in an accident are protected.
Also, third party car insurance can be less expensive than comprehensive car insurance. However, it’s important to keep in mind that the lower price may mean you don’t have as much cover.
What is comprehensive car insurance?
Comprehensive car insurance covers you for third party claims and damage caused to your vehicle after an accident. Comprehensive cover protects both you and your vehicle. AXA’s comprehensive insurance also covers accidental damage, windscreen repair or replacement, damage to your EV wall charger, and more.
Let’s look at an example: Ally is pulling into her friend’s driveway she accidentally hits one of the brick pillars and damages both the pillar and her headlight and bumper. Luckily, Ally has comprehensive car insurance so this will both cover her car and her friends pillar for any repair.
What are the benefits of comprehensive car insurance?
Comprehensive car insurance will give you peace of mind as well as the following benefits:
- It will allow you to claim for damage to your vehicle for accidents that are your fault
- It will pay to replace your car if it is stolen
- If your car has been damaged and the fault can’t be proven, comprehensive car insurance will cover the damage. For example, this would apply in the event that you return to your car to find that someone has hit it and driven off without leaving their contact details
For more details on the benefits, check out AXA’s full list of car insurance benefits.
Which is the best car insurance for me?
The best car insurance for you will depend on your specific needs. You should evaluate whether you need comprehensive insurance that will cover you for damage to your own vehicle. Or if you just need third party insurance that covers your legal liability to your passengers and other road users which includes their property.
There’s also a third, middle level of cover that you could choose from - third party, fire and theft car insurance. This insurance covers you for third party injury, third party property damage and loss or damage to your car caused by fire or theft.
Are there any other car insurance considerations?
- You can often add extra cover to your car insurance policy. At AXA, we offer optional extras which can be added to our car insurance policies at an extra cost. These include car & key rescue, injury to driver and broken glass cover.
- The type of car you drive affects how much you pay for your car insurance, so if you're looking to save money, usually low-specification models with smaller engines.
- If you have finance from your car from a car finance company, they may require comprehensive car insurance cover on the car until the load has been paid in full. So it’s important to understand whether you are required to have fully comprehensive insurance.
If you have any further questions, please check out our car insurance FAQs or contact our team. We’ll be happy to advise you on what car insurance policy would best suit your needs.
