What is Car Insurance?

What is Car Insurance?

Very much like death and taxes, car insurance is a certainty. Well, if you want to drive a car, that is. Find out what you need to get covered.

car insurance covered

Car insurance’s main purpose is to ensure that you’re covered if you have a car accident. In the UK, this type of cover is a legal obligation. Anyone who drives or owns a vehicle is required to get it – without exception.

Those caught without car insurance can face fines up of up to £300 and acquire six penalty points. In addition, you may find yourself in court where you might receive an unlimited fine and be disqualified from driving.

Quite simply, if you have a car – get insurance.

What is covered with car insurance?

Essentially, car insurance covers the costs acquired by injury to persons or damage to property should your vehicle have an accident. The car insurance policy you take out will determine whether or not you also receive compensation for damages. Not every policy was made equal, so reading the fine print is a must.

Types of car cover in the UK

In the UK, you can choose from three different types of car cover policy:

  • Third Party Only: Legally, this is the minimum requirement. The cost of compensating others for injuries or damage sustained will be covered. Third party does not provide financial help regarding repairs to your vehicle or injury to your person.
  • Third Party, Fire and Theft: The cost of damage to third parties will be covered, but you will receive compensation should your vehicle be damage in the case of theft or fire.
  • Comprehensive: Just as the name suggests, you’ll be covered for third party damages, theft, fire and for damage that your vehicle sustains. In addition, this kind of insurance policy may also provide compensation for medical treatment, accidental damage and legal expenses.

It is important to remember that most car insurance policies last for 12 months. This means that it will need to be renewed every year.

What is the best car insurance? 

When it comes to determining the best car insurance, it depends on circumstances. For example, young drivers may benefit from taking out a telematics policy; however, there are fewer financial benefits for older people. Thinking about your driving manner, where and what you drive aren’t the only important factors. Considering budget is also important. While third party may be the cheapest, you should weigh up the pros and cons. It may in fact surprise you to find out which policy offers better value.