There are essentially three major types of Motor Insurance available to vehicle owners with varying features and benefits. They are Third Party Motor Insurance, Third Party, Fire & Theft, as well as Comprehensive Motor Insurance. Although not required by federal law, all states and most countries have minimum insurance laws that are usually mentioned even in driver’s books.

Third Party Motor Insurance
Third party is the minimum legal level of insurance required. The first two parties are the insurance company and the driver. Third party insurance covers your liabilities in:

  • Injuries to others (i.e. to your passengers and other persons not inside your car).
  • Damage to other peoples’ property (e.g. the third party’s car, but not your own vehicle).
  • Uninsured/underinsured motorist coverage helps you in case the other driver, who caused the accident, has little or no car insurance

Or

Third Party, Fire and Theft covers the aforementioned Third Party risks plus theft, and damage to your vehicle caused by attempted theft and fire.

Comprehensive Motor Insurance, alternatively, gives you full coverage on third party listed above as well as yourself and your motor vehicle:

Or

Comprehensive Motor Insurance covers third party, fire and theft risks plus:

  • Accidental damage to your vehicle
  • Malicious damage to your vehicle
  • Personal accident
  • Medical expenses, to a limit
  • Loss of, or damage to, personal property carried in your vehicle, to a limit
  • New for old replacement in the first year
  • Glass replacement (windscreen, sunroof and windows)