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Understanding The Various Types of Insurance Cover

Katherine Jackman
 


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Finding the right insurance policies can be a long, frustrating experience that sometimes causes more problems than resolutions. This is especially true if you enter the insurance market without fully understanding the different kinds of cover available to them.

Searching for insurance can be overwhelming simply because there are so many different insurance companies out there, all of which are fighting for your money. This competitive market can lead to the facts becoming murky and unclear, until a person is left staring at facts and figures, unable to figure out what they actually mean.

Here are some helpful breakdowns of the three most common insurance types: Home, Travel and Car. So if for example you were looking for great Nigerian insurance, but have no clue where to start, then this should help you to work through the different policies with a clearer understanding of what you’re signing up for.

Car Insurance

There are three main types of car insurance:

  • Third Party

Third party insurance covers other people but not you. This policy tends to be more suitable for people that can’t find a well-priced Comprehensive policy, don’t have no-claims bonus or live in high-risk areas.

  • Third Party, Fire and Theft

Similar to a Third Party policy but with additions. While you will have to pay if your car is damaged in most cases, your insurance will cover repairs and replacements if your car is damaged by fire or stolen.

  • Comprehensive

This is the highest level of cover and includes cover in the event that your car is damaged, even if it was your fault.

Home Insurance

Home Insurance offers Content Insurance for your personal belongings and Buildings Insurance for the actual property.

The two types of optional extras for that you’re most likely to find when looking for home insurance are the following:

  • Accidental Damage

This covers damage to the home caused by you.

  • Home Emergency Cover

Travel Insurance

Travel insurance is entirely dependent on who is doing the travelling, and you can get various types of cover for this purpose.

  • Couples

This applies if you and your partner share the same address

  • Family

Suitable for families with up to four children aged 18 or below, or living permanently at the parents’ address

  • Single-parent family
  • Couple and Child

Policies tend to be defined by area, depending on where you’re visiting. Make sure that your policy covers everyone that’s coming with you, and keep in mind how long you will be travelling for and what you intend to do there. You may need extra insurance for specific activities as well; always check the policy to see how exactly you will be covered.

These basic breakdowns of insurance can make the process of finding the perfect policy for you much easier and more cost-effective in the long run. Just remember that being thorough will be beneficial to you; you can use tools like price comparison websites to streamline this process. For example, My Insurance Nigeria provides comparative information for hundreds of Nigerian companies , including all the necessary details in a way that is informative and easy to digest.

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