In some countries such as the United States of America, Australia and the United Kingdom, basic car insurance is mandatory. This mandatory car insurance, will cover personal liability, property damage and in some places third party insurance. In South Africa, however car insurances are not mandatory but a small percentage of money taken from petrol sales, goes towards the Road Accident Fund, the money in this fund is allocated to compensating third parties who were involved in an accident.

In many countries there still remains the debate whether car insurance should be mandatory seen as many people will never need to make a claim against their insurance. Could mandatory insurance be a way in which the governments help the insurance industry make money? If one looks at the probability of having to claim against one’s insurance it might seem that way. However many would argue that mandatory insurance ensures that people take responsibility of their own possessions and lives and those of others. And so the debate continues.

Third Party Only insurance

Third party insurance is about covering the damage done to the car, accidental injury and death of the third person. If you are involved in an accident, and the accident was your fault then this money will go to paying the third party damages. This does not cover the damage done to your car or personal injury. If you are looking for an insurance policy which covers you as well then you need comprehensive car insurance. Third party insurance is also the cheapest of the three kinds of car insurances. This type of car insurance is recommended for people who hardly drive their cars or people who really cannot afford one of the other options.

Third Party Fire And Theft Insurance

Third party Fire and Accident insurance, is a more expensive insurance yet it covers more incidents. When you take out this type of insurance you will be insured should you cause any damage to the car, accidental injury or death, to a third party. It does not however insure your car nor yourself in the event of an accident. Your car however will be insured against theft and hijacking. You will also be insured against damage done to your car caused by fire or an explosion.

Comprehensive Insurance

Comprehensive car insurance is an inclusion of every other event which could happen to your car, not included in the other two car insurances. Comprehensive car insurance covers everything related to your car and person as well as the third parties car and person. It includes third party insurance, theft insurance, fire insurance, collision insurance, and damage done by the elements. This as you can imagine is the most expensive of the three car insurances available to you.

These are the three types of car insurances to choose from. Once you have chosen which type of insurance you want shop around for car insurance quotes online and find the company which gives you the best prices.

For more information on car insurances, go to http://www.youinsure.co.za