Car insurance tends to be postponed until after the purchase, then decided in a hurry without comparison. The result is that many people don't actually know what their policy covers until they need it. This guide explains how to read a policy and compare offers before you're in a position where you need the answer.
This is the fundamental difference between types of cover, and everything else is detail after it:
| Third-party cover | Comprehensive | |
|---|---|---|
| Damage you cause to others | Covered | Covered |
| Damage to your own car | Not covered | Covered within the terms |
| Premium | Lower | Higher |
| Suits | A lower-value car | A high-value or recent car |
The practical rule: the higher your car's value relative to your ability to absorb losing it, the more the wider cover is worth. A car you could replace without much consequence doesn't need the higher premium.
Most surprises at claim time don't come from what the policy failed to mention but from what it stated in the exclusions clause that nobody read. Ask explicitly, and in writing:
The cheapest premium isn't necessarily the best value. Compare three things together rather than one: the premium, the excess, and the scope of cover with its exclusions. An offer with a lower premium and a higher excess can cost you more at the first claim.
And ask about the insurer's reputation for settling rather than about price alone — insurance is a product whose value you only learn on the day you need it.
With the other vehicle documents. A policy in a drawer at home is no use on the road, and the moment of an accident is not a good time to discover you don't know where it is.
Browse the car listings, and count insurance within your post-purchase costs as set out in the buying guide.
Know what your policy covers and excludes before you need it, compare the premium, excess and scope together rather than separately, notify within the specified period after any accident, and keep the policy in the car.
Third-party covers only damage you cause to others at a lower premium; comprehensive also covers damage to your own car within the terms at a higher one. The rule: the higher your car's value relative to your ability to absorb losing it, the more the wider cover is worth.
The exclusions specifically, the excess you pay on each claim, whether cover is valid outside your governorate, who assesses damage and how its value is calculated, and the expected time to settle a claim.
Compare three things together rather than one: the premium, the excess, and the scope of cover with its exclusions. An offer with a lower premium and a higher excess can cost more at the first claim.
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