It can sometimes be difficult to know exactly what type of car insurance is needed for your personal circumstances and the Mercedes-Benz that you own. There are several factors to consider, and this article will discuss three of them in detail.
Firstly, it is worth considering that car insurance is a legal requirement to enable you to drive on nearly every country’s public roads and highways. There are very few exceptions to this rule, most notably in America the states of Virginia and New Hampshire do not make it mandatory to have car insurance.
Even with this said, most drivers still carry insurance in these states to ensure they are protected financially from the risk of any accident or damage to their vehicle. Here are the main points to consider when choosing car insurance that is right for you.
Fully comprehensive or third party?
Most insurers offer either a fully comprehensive car insurance policy or a third-party version. Third-party insurance is the lowest form of insurance that is usually required. This covers damage to another person’s vehicle in the event of an accident and may cover any injuries sustained to other people. In most policies, any damage that occurs to your own vehicle will not be covered which would mean that you would be liable for any repair costs to your car. A Comprehensive policy is as it sounds. In the event of an accident or damage to your car, you will be able to make a claim with your insurance company to allow them to pay the costs of repairs to your vehicle. This will also include damage to your car from vandalism or unexpected natural damage.
A wide range of car insurance policies also contains both voluntary excess levels and compulsory excess values. Voluntary excess is the amount of money you are prepared to pay yourself in the event of a car insurance claim whereas compulsory excess amounts are the cost that you will need to pay for any repairs that are already written into your car insurance policy. Generally having higher levels of both voluntary and compulsory excess limits tends to result in cheaper car insurance when compared to policies with lower amounts which can have higher premiums. A key fact to consider is how much you would be willing to pay as a result of an accident or damage sustained to your vehicle. If you have a lower-value car, then it may be a better option to have higher excesses and lower insurance premiums and either scrap the car or get the work done yourself in the event of vehicle damage.
A key factor in the overall cost of your insurance premium is your age and how many years you have been driving without making a claim. Young drivers’ insurance costs can be extremely high as they are viewed as more of a risk for insurance companies due to their relative lack of experience on the roads. This high cost tends to make finding cheap car insurance a prime consideration and many young drivers will opt for third-party coverage with higher excess levels in an attempt to keep premiums down. For older and more experienced drivers with several years of no claims bonus, premiums will be significantly lower to begin with and it makes sense to choose comprehensive policies with high levels of cover.