Understanding Vehicle Insurance

Motor insurance is legally required, but the legal minimum protects other people rather than you. The difference matters at the first accident.

Third party versus comprehensive

Third party cover is mandatory and pays for damage you cause to others. It pays nothing towards your own vehicle. Comprehensive adds own-damage cover, theft and usually a personal accident cover for the owner-driver.

Why zero depreciation matters

Insurers depreciate plastic and rubber parts heavily. Without a zero depreciation add-on, a claim on a three-year-old car can leave you paying a substantial share of the bill yourself.

Insured Declared Value

The IDV is the maximum you receive on total loss or theft. Declaring a low IDV cuts your premium and cuts your payout by more. Keep it realistic.

The no-claim bonus

Consecutive claim-free years build a discount worth up to half your own-damage premium. It follows you, not the vehicle — so it survives a change of car, and it is worth protecting by paying small damages yourself.

Before you decide

Everything above is general. What is right for you depends on what you are protecting, what you already hold, and what you can sustain. That is a fifteen-minute conversation, and it is free.