If you own a car, you must know that to maintain a car with is very costly. To add to this is the car insurance. But there is good news for all the car owners that the car insurance premiums have started to come down in recent times. However, this does not cut down on your expenses. It will surely give you a big bite as usual. So, it is necessary for you to learn a few things about the different policies on offer.

Legal requirement and risk factors:

Do not run your vehicle without insurance as it is illegal. If you get caught with an uninsured car, you will have to give a penalty and eventually your vehicle will be seized and destroyed. As car insurance is all about risks, the more risk it covers, the more expensive it will get. Insurance companies look into various aspects before quoting a premium. Among those, your age plays a significant role as if you are an older person you are less accident prone than the younger people.

Types of car insurance:

There are three types of car insurances. One is third party car insurance which is the most basic and minimum legal requirement. This pays for the damage caused to any third party’s car or vehicle by you. This doesn’t pay for your vehicle’s damage.

The second one is third party fire and theft car insurance. This covers the cost of any damage caused by fire or theft to any third party’s car adding to your car’s damage as well. Even if the fault is yours, you’ll get the cover for your car.

The last and the most modified is the fully comprehensive car insurance. This gives you additional facilities, so the young drivers often opt for this cover. It may even cost you lesser than the other two. You must check whether your car is worthy enough for this or not. It is therefore important that you go through all the premiums on offer before choosing one for yourself.