I’m Louise Bastock, deputy editor at Finder,here to talk to you about the glamorous world of car insurance. OK, I totally get you could probably thinkof 100 other ways to spend an afternoon than
shopping for car insurance. But it’s an essential job for anyone thatowns a car. There are three main types of cover for carinsurance in the USA: third party, third party fire and theft and comprehensive.
In this video, I’ll give you a rundown ofwhat each cover includes, a quick lesson on excess and some extra cover options that mightsuit your specific driving style. Third party cover is the minimum
legal requirementfor drivers in the USA. If you gotsta car, you gotsta have it. Unsurprisingly, then, third party is the mostbasic b’ form of cover. If you were to get into an accident, thistype of cover will
protect you against injuries to others, both in your car and other vehicles,as well as any legal claims made against you. However, it will only protect you againstdamages to someone else’s car or property, not your own. A popular choice among first-time
drivers and those on a budget, be aware that thirdparty cover also doesn’t protect you if your car is stolen or destroyed by fire. Which would be an absolute nightmare of aday! Third party, fire and theft is the secondtier of car insurance. It works
much like third party cover but,you guessed it, also includes cover for stolen vehicles and fire damage. However, it still doesn’t cover you fordamages to your own car, if you were to get injured or if your car is written off entirely. So, if
you were to get into an accident, youcould still end up forking out a lot of money to cover your own costs. When it comes to comprehensive cover, kudosto the marketing department for thinking of a dynamic, cutting-edge name for this toptier of car insurance. Not all heroes wear capes, but some
shouldhave given the naming round-table just a couple more minutes! To be fair, comprehensive cover does whatit says on the tin, covering you against fire and theft, personal injuries and injuriesto people in your car and other vehicles,
damages to both your car, other vehicles andproperty, plus the cost of any legal claims. With comprehensive cover, you can get in asmany accidents as you want. KIDDING! As well as the “big three” you may alsohave heard of pay as you
go and temporary car insurance. And while they sound similar they are actuallyquite different forms of cover. Pay as you go is strictly usage-based, soyou only pay for the miles you drive. This type of cover is ideal for people whoregularly use their car
but only for low-mileage journeys, such as the school run or tripsto the supermarket. Despite the name, pay as you go insurancestill protects your car even when you’re not driving it. It is just that the cost of your premiumsare calculated based on your mileage. This can be done in one of three
ways: 1. By tracking your miles. This usually involves fitting your car witha small device, similar to a black box, that tracks your distance.
By hourly rate. Again, using a device to track your hoursspent in the car. The downsides to this method include havingto pay extra for getting
stuck in traffic and incidentally incentivising people to drivefaster. The final method is to estimate your miles. This is ideal for people who regularly drivethe same journey and know the exact distances. Otherwise, you could get stung if you
overestimateyour miles as many insurers won’t offer refunds for unused miles.Temporary cover, then, is purely time-based. It allows you to instantly insure a car fromone hour to 30 days at a pop, and usually acts as a top up to a pre-existing
permanentpolicy. For example, you have a car that you pay ayearly premium on. But if your brother comes to stay for theweek, you would add seven days-worth of temporary cover so he’s also insured during his visit. Temporary car insurance doesn’t
take usageinto account, so whether your brother uses the car once, 17 times or not at all, youstill pay the same amount. The type of cover you will need will dependon how much control you want over your premiums, how often and how far you drive and whetheryou’re the sole driver of the car.
For more information on whether you need temporaryor pay as you go insurance head to finder.com/uk – the link to our comparison page is inthe description below. There are two main costs involved with carinsurance. The first is the cost of
your cover. This is your insurance premium and is calculatedbased on your personal circumstances, the type of car you drive and your driving trackrecord. The second is your excess. Your excess is a pre-set amount you have tocontribute towards any claim made on your policy. So, if
you’ve just crashed your brand newBentley and your excess is $200 but the claim is $1000; you’ll have to stump up the 200quid before the insurance company pays out the additional $800. Most insurers will have a minimum compulsoryexcess amount and, typically, will let you raise your excess amount to lower your premium. Just make sure
you have the budget to accountfor those out of pocket payments. Bentley’s ain’t cheap, honey! Even if you have comprehensive cover, youcan still add extra levels of cover to your policy. So if you’re someone who’s always gettinginto accidents… well, you probably shouldn’t be on the road. But if
you think you’d benefit from a morecustomised cover, then it might be worth adding some of these optional extras to your carinsurance. Lots of these are fairly self-explanatory. When deciding if you need any extra cover,it helps to consider not only what kind of driver you are, but where you typically driveand what you use your car for. For example, if your car is essential to getto work or drop the