Why We Need To Buy General Insurance

In a nutshell, buying General insurance is about managing risk.

Most frequently used as a means of managing financial uncertainty, insurance exists to provide peace of mind should anything happen to you, your loved ones, your investments or your business.

Why everyone needs general insurance

Glass breakage is common around the home – especially with a summer of backyard cricket underway.

While it is tempting to think “it would never happen to me”, ask yourself what would be the cost financially – not to mention emotionally – should the worst happen and you lost everything through no fault of your own?

He says the first thing people should do when considering seeking cover is to talk to their chosen provider about their lifestyle and how it can be protected – no matter what stage of life they’re at – whether young or young at heart, home-owner or renter, employed or looking for work.

While most insurance providers attempt to provide the most comprehensive cover they can, it is always worth reading the small print to ensure you are getting the best bang for your buck.

To help mitigate some of the issues faced by its policyholders in the event of obvious disasters such as fire, flood or theft or smaller everyday disasters such as accidental breakage, AMI policies offer a number of unique features not offered by some of its competitors.

“We recognise that glass breakage is pretty common, especially with summer here and backyard cricket starting up – that’s why our policies give you the option to remove the excess for glass breakage,” says Tippet.

Policies can also include something as simple as cover for Christmas presents stolen while kept in the home, while legal liability under standard contents cover with AMI means you may even be covered for accidental damage to someone else’s property, he says.

We also offer more flexibility when it comes to car insurance.

“Most insurers only cover rental cars if you’re left without your own car while our policies include substitute transport costs including any combination of rental car, taxis and public transport – there’s even the option of additional cover for medical expenses.”

To help make the process even easier also boasts its own smartphone and tablet app –We Assist – that as well as simplifying the claims process and detailing the fine print, also has special offers on everything from carwashes to WOFs.

Source:  [ 

http://blogs.rediff.com/generalinsurance/2016/06/28/buy-general-insurance/ ]

General Insurance

General insurance actuaries help provide expertise in three main areas:

·         Reserving (in reserving they apply statistical techniques to assess the likely outcome of general insurance liabilities, typically, and the provisions that are needed for reporting purposes)

·         Rating (the pricing actuary assesses the frequency and average amount of claims to estimate premiums)

·         Capital modelling (for capital modelling the actuary projects both the liability and assets of insurers to assess solvency and future capital needs).

General insurance or non-life insurance policies, including motor and household policies, provide payments depending on the loss from a particular financial event.  General Insurance typically comprises any insurance that is not determined to be life insurance.  It is called property and casualty insurance and non-life insurance in Continental Europe.

In the General insurance is broadly divided into two areas, personal lines and commercial lines.

Commercial lines products are usually designed for relatively large legal entities. These would include workers' comp (employer’s liability), public liability, product liability, commercial fleet and other general insurance products sold in a relatively standard fashion to many organisations. There are many companies that supply comprehensive commercial insurance packages for a wide range of different industries, including shops, restaurants and hotels.

Personal lines products are designed to be sold in large quantities. This would include motor insurance, household insurance, pet insurance, creditor insurance and others.

The London Market provides a focus for many insurance companies and syndicates operating under a Lloyd’s of London banner to write large commercial risks such as supermarkets, football players and other very specific risks. It consists of a number of insurers, reinsurers, [P&I Clubs], brokers and other companies that are typically physically located in the City of London. Business is typically written through specialist brokers. The London Market also participates in personal lines and commercial lines, domestic and foreign, and provides reinsurance.

The statistics on the changing profile of our membership tell us that around 30% of our general insurance members live and work outside. As a result, the General Insurance Practice Executive Committee (PEC) is continually looking at what it can do to support our members. 

[Source : http://bestinsurancestock.blogspot.in/2013/03/general-insurance-uk.html]

GENERAL INSURANCE

Bajaj Allianz is one of the fastest growing General Insurance companies in India and also won awards for Best General Insurance Company & Claims Innovation awards.

Auto insurance coverage review for policy member’s candidate

From a wide scope of insurance coverage policies existing at prompt, auto insurance coverage would be the most preferred decision together with the majority with the crowd obtaining automobiles. The premium quantity varies with otherwise auto insurance coverage corporations and reside is additional compulsory in crowded states.

From a wide scope of general insurance coverage policies existing at prompt, auto insurance coverage would be the most preferred decision together with the majority with the crowd obtaining automobiles. The premium quantity varies with otherwise auto insurance coverage corporations and reside is additional compulsory in crowded states.

A lot of the auto insurance coverage corporations cover house harm liability, physique injury liability, healthcare payments and specific other humor unbefitting their policy. Bountiful auto insurance coverage corporations also present the benefit of extended coverage with the insurance coverage to other persons apart from the pioneer driver. Therefore, if anybody driving the automobile together with the permission with the infant driver faces any sort of accident, then the loss amenability emblematize recovered completed the insurance coverage policy. Wherefore to use for agnate affordable auto insurance coverage policies,

Bountiful tribe upgrade the good scale supplied in the state farm as they catch consternation of sovereign insurance coverage desires than any other insurance coverage corporation. They may be quickly reachable completed the insurance coverage recite internet websites. Men and women who resort to for their motorcycle insurance coverage regard that state farm presents them sort insurance coverage and peerless buyer service.

Humans hunting out for discount presents in their auto insurance coverage reproduce may well elevate all state auto insurance coverage. Divers consonant insurance coverage corporations educate about their policies on the net and for dab to ensconce direct links with their buyers. Some auto insurance coverage corporations common subsidize the ease of on the net degree cite generator that pdq generates quotes determined by the facts offered by their on the net visitor.

A comparison shopping with the insurance coverage policies wrapped up the breed search tools proves to become additional helpful and effective for the buyers plus the corporations at the same time.

To possess the lowest plus the most precise motorcycle insurance coverage or any form of auto insurance coverage appear out in the important search destinations on the net. Therefore the world wide web lately would be the finest selection for potential policy holders.

[Source: https://generalinsurancesite.wordpress.com/2016/04/30/auto-insurance-coverage-review-for-policy-members-candidate/]

What is New - General Insurance in India

Post de-tariffing of market in 2007 the general insurers in India have free market approach to price their products except for motor third party insurance. Sustainable growth is the life line for any business and insurance is no exception to it. Insurers must have the 360 degree view of their business .The Regulator, who watches the interest of the policyholders, however observed that despite its advisories the free market regime coupled with intense competition amongst insurers & their obsession for the top-line is resulting into deficient assessment of insurable risks, in corporate sector, and that the prices are offered to these corporate clients for property insurance and group health insurance at non-viable rates which are ultimately subsidized by the buyers of retail products. Due to aggressive competition the insurers were offering heavy discounts on portfolio basis to retain their accounts and were quoting less than 10 to 20% below the estimated outgo in group health segment to attract new corporate. 

These corporate with loss making group health covers continue to escape price hikes by shopping for new insurers. The chase to build up top line and the pressure on marketing force of the insurers for their targets resulted in health insurers willingness to accept the business even not covering expected claim cost ignoring loading for medical inflation, acquisition cost , servicing cost by third party administrators and management expenses. 

In a bid to address this issue and to bring corporate governance in the business behaviour of the insurers the Authority has prescribed its pricing prescription which is applicable with the 1st day of 2015. The Authority's prescription for pricing fire, property and group health insurance is to consider Burning Cost as starting point to price these risks. This only can move market forward towards claim plus pricing mechanism. Burning cost is the estimated cost of claims in proposed insurance period and is calculated from previous year claim experience of the insurer duly adjusted for change in number of lives and for changes in the benefit design proposed for current year of the risk. IRDA in its advisory and prescription has made it very clear that industry-wide losses should be considered for pricing the product and insurers current level experience of acquisition and management expenses should be loaded to it. 

The industry-wide burning cost is available with IIB (Insurance Information Bureau of India) for Fire and Property Insurance but such industry-wide burning cost for group health is not available. The Authority is also aware that brokers are not disclosing all details of group health experience to insurers at the time of RFQ (request for quote). In health insurance the trend & incidence rate usually does not vary from year to year. However, the average claim cost bears the impact of medical inflation to some extent. Till the IIB is ready with the industry-wide Burning cost in group health segment the authority has tightened the reporting parameters. It has prescribed that the intermediary or the client will mandatory have to sign and disclose the claim cost of last year and preceding two years in the input format designed by General Insurance Council of India (GI Council). This will surely improve the disclosure and will put insurers in a better position to assess the risk on quality data necessary to price the risk.

With uniform data now available to underwriters if any of them choose to price the group health risk lower than burning cost than it will have to have the approval of its Board of Directors. Further this will have to be filed in form of Exception Report in a format to be designed by IRDA.

The Regulator has initiated this move to see right pricing coming into the market and corporate governance in the business behaviour of the insurers. The move signals that premium for this fastest growing portfolio would be rising in last quarter of 2014-15 or else there will be reduction in the benefits including caps beings introduced for procedures or else employers will seek sharing of cost from employees for present benefit design of their health protection covers.

[Source: http://vinay-verma.blogspot.in/2015/01/burning-cost-prescription-by-indian.html]

What is the importance of general insurance cover?

Life is full of joy and happiness if you have plenty of money, good house, a luxurious car, good health and lavish lifestyle. But you many never know when you might come across an unexpected calamity or incidence that can damage your valuable belongings or endanger your life. In this era of high uncertainty spiral inflation rate, the dangers posed to our prized possession have reached new heights. The best way to protect ourselves by getting dump in the manhole of financial losses would be getting it insured at the right time. Today, insurance is becoming a necessity more than just a utility. Safeguarding your belongings accumulated through years of hard work is the right thing to do and this is where different type of insurance service provider plays a pivotal role.

The insurance that protect our belonging and covers our health is known as “general insurance”. While market are filled with variety of customized policies you can choose the best suitable for you depending upon your income sources, asset value, place of living and other factors. You can either visit the branch or call up customer service or buy from agents. But one of the best and modern day convenient ways to buy general insurance policies would be online purchase.

Today, the educated section is purchasing policies online. The purchase of non-life insurance policies in the country is on rise. More and more people from metropolitan, town cities and even rural areas prefer buying polices online.  The ease of purchase and convenience of buying it anytime and anywhere are the primary drivers for policy purchase online. Many insurers have started realizing this. They have created separate verticals to exploit this segment.

General insurance segment of India comprises of a wide array of insurance such as health insurance, motor insurance, home insurance, travel, fire and business insurance, lifestyle insurance and other forms. Experts say the thrust of this insurance segment is inclined toward business verticals and cater to giant corporate clients as well.

There are around 20+ general insurance players in markets and some more large international ones are expected to enter shortly. These companies have come up with innovative ideas and customized ways of policies for offering the existing and prospective customers, new technology platforms that would keep their business update to date and organized and would also be beneficial to them.

While purchasing policies it is important to follow some guidelines:

Also, take policies depending upon your income sources. Never exceed premium costs more than income sources else if you cannot pay certain premium it might lapse.

Make a note of each and every valuable possession in your house, about family health issues and pre-existing diseases,  your car inclusions and exclusions, property value etc. depending upon the type of policy you wish to purchase.

Always keep all the policy documents and other necessary documents handy with scanned copy on your email account so that you can easily produce them at the time of insurance claim.

Ensure that you keep on regularly updating your possession in house, business expansion updates, property purchase updates and health updates time-to-time with the insurance company. Make sure you incorporate these things in the insurance policy.

Produce the requisite FIR (incase of valuables being stolen) or other reports as required at the time of claims. Good and reputed general insurance companies will let you compare quotes with their top competitors before signing up for polices. Using a couple of insurance calculators is an excellent method to make sure you get precise quotes as per your requirements. 

Insurance

Renew your existing insurance policies online with ease. Whether it is car insurance, two-wheeler or health insurance, avail Bajaj Allianz instant renewal facility for hassle-free insurance renewals

Medical Travel Insurance

Insurance – An Introduction

The Insurance business is broadly divided into two major categories first is Life Insurance and other one is General Insurance. The Life Insurance covers the loss to Human Life whereas the General Insurance is primarily a Non-Life Insurance, which covers risk associated with various things/affairs one found precious enough to be covered under an Insurance.

It is true that the Human Life is most precious asset one can protect but at the same time it is also an undisputed fact that with the passing time several other assets took place in human life which are inevitably part of our day to day life. Human beings have now become materialistic and hence the value of a Human Being also derived from the material assets he possess. This may include your house, vehicles, shops and daily used utensils and equipment etc.

All the assets you possess are open to various risks and it is always a possibility that these assets can be destroyed or may be harmed in a manner whereby its value get decreased by damage caused by any uncertain/unforeseen event. As the Human Life can be shortened by deceases or accidents, similarly or assets/property can be destroyed by natural calamities or any man-made act.

Many a times these kind of activities do not occur for longer period of time, may be for decades, but the fact always remains the same that we are exposed to the risk of happening of any uncertain/unforeseen event.

Although, its true, no one can see his/her future but at the same time it is also true that we can predict the future events in a reasonable manner and therefore we always try to avoid certain activities which may lead us to losses and wherever we are unable to avoid some kind of acts we try to protect ourselves from those events.

Like for earthquakes we build houses strong enough to be unaffected from earthquake up to a certain limit. But what if the earthquake occurs with huge intensity that a whole city get destroyed in minutes. Fortunately these events do not occur frequently but the fact again remains the same that we are unable to avoid certain kind of losses that may occur any time in future.

Simplified Concept of Insurance

To cover up the damage occurred due to any foreseen or unforeseen event and mitigate the losses the mankind evolved a wonderful concept of Insurance. Since the occurrence of loss causing events are few in numbers the mechanism of Insurance ensures that the losses to be shared by all members of a certain group which is exposed to similar risk of occurrence of such loss causing event.

This mechanism runs over a simple concept of society where we come together to form a group and this grouping make us feel protected and similarly while having the insurance all the risk bearers ensure that any loss occurring in future shall be borne by whole group despite of the fact that actual loss occurred to a very few members in that group.

So in this manner, Insurance is a mechanism which ensures that the unfortunate some, who suffered loss due to a certain event, get compensated and their loss be mitigated by large number of contributors who are exposed to similar kind of loss causing event,

[Source: https://generalinsurancesite.wordpress.com/2016/03/02/insurance-an-introduction/]

Why should you buy peace of mind for your vehicle?

Imagine you’re driving a vehicle and get into an unintentional accident. There is a property and car damage including some bruises to the opposite party driver.  As long as it’s not your fault things will be fine but if it’s your fault you will have to face huge financial brunt to cover up the damage. One thing that can offer a financial back up is insuring your vehicle with third party insurance. Therefore, third party motor insurance is the most fundamental form of coverage set by Indian Tariff Law to get your vehicles running on roads. It is the most economical coverage option you can get.

The article discusses few things you should know about third party motor cover before buy it.

It is the kind of cover under which insurance company will agree to compensate or pay for the damages done by the insured person, if he or she is sued or held legally liable for  injuries and damages done to a third party. So, if you bump your car with another car and the accident turns out to be your fault then you’re liable to pay losses such as physical and health damages. However, you cannot claim damage to your own car or health. For this a separate policy known as comprehensive vehicle policy is available in market that will manage things for both the ends.

If you meet with unfortunate incidence and it happens to be other person’s fault then this is how you can make third party insurance claim. A victim, owner of the property, or the legal envoy of the deceased person can make an application for a third-party claim against the vehicle owner. To file a third party claim, an FIR must be filed with the police. 

The FIR would generally include Registration number of the vehicle involved in case of an accident, License number of the driver, Name and contact details of witnesses, if any.  The claimant need to file a case with the Motor Accident Claims Tribunal under the jurisdiction of the area where the petitioner resides or the accident occurred. Documents required would include a copy of the FIR and the original records of expenses incurred by the applicant to authenticate the damages or loss. 

Cheap Travel Insurance

Compare from our travel insurance plans and choose the one that suits you best. Bajaj Allianz travel policy offers cashless hospitalization worldwide. 

Health Insurance by Life and General Insurance Cos

By now you know how the increasing cost of hospitalization and healthcare expenses have made health insurance an inevitable necessity for all, right? Let’s now understand how buying health insurance from a general insurance company and a health policy from a life insurance company can mean two totally different things. And it is when you know this difference, can you select the best for yourself and can you avail of all the benefits you are entitled to.

Health insurance vis-à-vis General Insurance Company: (or non-life insurance)

Any insurance which is non-life insurance typically falls under the category of General health Insurance. This includes insurance for myriad things including car, fire, travel, household, marine etc. But this is not all. As general insurance pertains to non-life insurance, it also includes Health Insurance, wherein a person insures his and his family’s health against hospitalization due to various unforeseen ailments and growing medical expenses.

Hence, health insurance comes under general insurance as the latter provides protection against unforeseen events such as accidents, illness, et al. General insurance companies offer health policies which are mainly short term in nature. This means, that the health insurance policies can be renewed year after year and the premium amount varies with age.

Health insurance covers offered under general insurance, include mainly hospitalization covers either on reimbursement or cashless basis. The Third Party Administrators (TPAs) mainly offer cashless service as they have arrangements with various hospitals, who are the service providers. The TPAs also help in reimbursement claims.

Health insurance vis-à-vis Life insurance Company:

Many of us tend to confuse health insurance or mediclaim with life insurance. Though, both of them are vastly different in structure and content, while health insurance primarily caters to your health related expenses until you are alive, life insurance typically means insuring a person’s life wherein the returns are accrued due to your death or at the end of the term of the policy.

There are various life insurance companies that offer health benefits and packages. Firstly, the health related policies under life insurance companies cover certain critical illnesses. For example, certain private companies that offer life insurance to customers cover about 36 critical illnesses which include heart attacks, stroke, cancer, paralysis etc. Now this in turn means that once a person visits a doctor for treatment, and if the doctor then after diagnosis confirms a serious illness, then on the basis of the doctor’s report, the insured will get a lump sum amount from the company.

[Source:http://www.medimanage.com/my-health-insurance/articles/health-insurance-by-life-and-general-insurance-cos.aspx]

General Insurance

Today life insurance is too common for us and most of us are still not fully aware of other sort of insurances. General insurance is the oldest and productive insurance for any insurer. General insurance offers us to live free and safe, anytime and anywhere. General Insurance can be simply defined as a non life insurance. Insurance that cover anything other than your life is known as general insurance such as motor insurance, health, fire insurance and many others. General insurance is a contract between two parties, insurer and insured. Insurer is organization or a company and insured might be an individual or item or goods or organization.

Under this contract, insurer guarantees the insured to cover him against non life mis-happening in future. General insurance has been introduced many centuries back by Babylon tribes as they offer security to the merchants for safely delivery of their goods and against it they receive extra amount on the contracted amount. Since then general insurance has spread all over the world and form into a business. General insurance is not only a business rather it offer you security against your property, goods, office and health. Here are types of general insurance offered by some of the leading organizations.

Types of General Insurance –

·         Auto Insurance – Auto Insurance is the most popular and demanded insurance all over the world. Under this insurance, insurance company covers your vehicle or motor with insurance against theft, loss or accident. On such cases, insurance company will pay back the insured amount to the owner of the vehicle or motor.

·         Health Insurance – Another most demanded insurance plan now days. Health is the main concern these days and people have to spend huge part of their income on the medical and hospital expenses. Insurance companies cover an individual or a group of individual such as family against health concern. With this cover, insurer guarantees to bear total hospital and medical expenses occurred on insured person or group.

·         Liability Insurance – This insurance is specially designed for corporate organizations. Under this insurance plan, insurer covers the liability of the insured corporate and in case of bankruptcy, insurer is liable to clear all the debts and liabilities of the company or individual.

·         Home Insurance – Home insurance is for household. Under this insurance plan, insurer provide cover or protection to the insured person’s house against disaster and hazards such as fire and natural hazards. In case of destruction of house under proclaimed norms or cases of insurer, insurer is liable to pay the cost of house reestablishment.

·          Marine Insurance – Marine Insurance is generally taken by such corporate organizations who operate on seas such as cargo, logistics and many other. With this insurance cover, insurer guarantees to pay the amount of loss due to water while shipment to the insured company or individual.

·         Fire Insurance – Fire Insurance is one such insurance plan which one can commonly find in any organization or home. Under this insurance plan, insurer is liable to pay the compensation for losses due to fire to the insured house or organization.

·         Property Insurance – This is a new insurance plan which defines to offer protection to the insured person’s property against natural hazard, theft, mishap or accidents. This plan is for both movable and non-movable properties.

·         Pecuniary Insurance – Pecuniary Insurance plan is one of the best plans of its type. Under this plan, an individual or group get insured for his wealth or money against any inconsequence such as loss, theft, miscarriage or any other. Insurer guarantees to pay for the value of his insured wealth in such mishaps in future.

·         Aviation Insurance – Aviation insurance is a high profile plan and differs on its basis. Aviation Insurance could be for an individual or for an organization. Under this plan for an individual, one gets insured for his or her air travel and insurer pays the insured amount against the loss in case of any mishaps during the air travel. Another for an organization, aviation companies gets the insurance for their flights against any accident in air.

·         Cattle Insurance – Cattle insurance is for the agricultural or rural individuals who get this insurance for the cattle such as cow, bull, sheep and many other against their losses in future. It helps them to minimize their loss due to the loss of their productive cattle.

·         Accident Insurance – Last but not the least, accident insurance is another most popular and demanding insurance in market. Under this insurance plan, insurer guarantees to bear all the expenses occurred on medical and pathological of the insured person due to accident.

      [Source: http://blogs.rediff.com/generalinsurance/2016/02/04/general-insurance-2/]

How to Choose Travel Insurance – 3 Best & Cheapest Options

What are the best travel insurances on the market?

Well, this will depend mostly on where are you from and what kind of coverage you want for your trip. If you research on the internet, you should be able to find a lot of options.

However, I have already researched A LOT have compared a lot of travel insurances and I always end up with the 3 online options that follow: 

The cheapest travel insurance on the market!!

Seriously, if you can find a cheaper travel insurance than this one, which works for citizens from all over the world, please let me know. As I have not found anything cheaper, I like to use  Medical (Atlas Travel) when I’m traveling to a “safe” place where I’ll be visiting mostly cities, such as United States or Europe, and I know I won’t be doing anything crazy. To be honest, I’ve thankfully never had to actually use any travel insurance so I’m not sure how the compensation services work. But I searched for reviews about Medical (Atlas Travel) and it looks like it worked fine for others who did have to use it. It’s really a great option if you are looking for cheap travel insurance.  

As I mentioned before, it is an international cheap travel insurance that accepts citizens from all over the world, with a few exceptions. Since it is cheaper than others, however, it may not cover all types of extreme activities. So, if you want to buy it, just make sure it covers the activities you intend to do as well as your nationality. It’s suitable for trips of any lengths ranging from someone’s round-the-world backpacking trip to a student on a short exchange study or an annual holiday.

You can also buy travel insurance with Medical if you have already started your trip. You don’t have to be at home or within your country of residence to buy this travel insurance or to extend your existing policy. 

Finally, there is NO age limit for Medical!  It will rate the cost based on the age you enter. However, when you’re over age 70 and then 80, the limits of coverage decrease. In other words, you will pay more than a younger person for the same amount of coverage. With that being said, since there is no age limit unlike most other travel insurances companies, Medical is an ideal travel insurance for seniors. 

Why should you have travel insurance during your trips?

Good travel insurance is really important, especially if you travel like I do and do activities where the chance of getting hurt are high and the medical expenses they might cause are enormous. During my trips, I’m always hiking on mountains, climbing things, jumping here, throwing myself over there, swimming where I shouldn’t, diving ….basically doing everything that I consider part of a perfect trip!!

Imagine if you’re snowboarding in Switzerland without travel insurance, get hurt in the middle of the mountain, and have to be evacuated by helicopter. The medical bill you will receive, while still in the hospital bed, is going to be so big that you will have to stay longer at the hospital to treat the cardiac arrest you’ll get after looking at all those zeros.

I’ve lost count of how many backpackers I met during my trips who had a giant scars on their legs… it is the famous Thai Tattoo!! Basically, this happens when someone was drunk while riding a motorcycle in Thailand and ended up falling or burning himself on the exhaust pipe. Do you really want to go to a public hospital in the middle of Bangkok?!?! With travel insurance, you can go to a private hospital where they will probably l take much better care of you. 

[Source: http://outofyourcomfortzone.net/how-to-buy-travel-insurance/]

Is third party insurance cheaper than fully comprehensive?

Third party v fully comprehensive insurance

Is third party insurance always cheaper than fully comprehensive?

Third party only should be cheaper, but according to this is not always the case.

Let’s understand the difference between policies. The law demands you have third party insurance which covers the cost to others (the third party) of the damage and injury you cause through your own fault. Your own vehicle is not covered by your own policy.

Next you can add to the third party policy, fire and theft being the usual sensible additions.

A fully comprehensive policy has everything above, and then includes cover for your own vehicle damage, regardless of who was at fault. Your vehicle is covered up to its market value at the time of the damage. You can add extras like motorcycle helmet and protective gear.

So it looks like the insurance company is at risk of paying out more, so the premium should be higher.

Our friends at have researched 1.4 million annual car insurance policies and the result challenges what we might have expected.

On 30 June 2010 Felicity King-Evans wrote for the comparison website.

Analysis has found that in actual fact, fully comprehensive cover is often the cheapest, despite offering the highest level of protection. So how can this be possible?

To find out run a quote for yourself covering all the options. The average driver will find that their car insurance premiums rocket if they search for third-party-only cover.

But why? It’s always been assumed that the less cover you buy, the cheaper the policy.

Steve Sweeney, car insurance expert, explained: “In recent years, drivers with a more ‘risky’ profile, such as younger motorists or those with driving convictions have opted for this cover to keep the cost of motoring down.

“Providers have reacted to this perceived increase in risk by driving up the cost of third-party only cover.”

After all, insurers are in the business of assessing risk. For example, there’s a higher likelihood of accidents among teenage drivers, so they are charged more. So, if car insurance providers realise that motorists buying third-party insurance only cover are more likely to be involved in accidents, they will rack up the price accordingly – and that’s what’s happened.

Third-party only cover costs an average of £1,927 a year, which is a whopping 109% more expensive than average fully comp cover at £922 a year. The average premium for third party, fire and theft stands at £1,348 – nearly 50% more than fully comprehensive.

It’s not just that riskier drivers go for these policies, driving up the average cost. By choosing third party cover, experienced drivers fall into a riskier category in insurers’ eyes – the result of which is a higher premium for the individual.

[Source: http://www.yourkey.info/is-third-party-insurance-always-cheaper-than-fully-comprehensive/]