Guide to Car Insurance

In the UK today there are over a hundred car insurance companies providing a wide variety of motor insurance products offering varying types of cover and protection for the British motorist. This guide to car insurance is offered to help those people who have little or no understanding of what types of vehicle cover exist and what is required of them as drivers of said vehicles.

The first and most important thing to remember about motor insurance is the fact it is required by law, it is not a matter of choice. If you own and drive a motor vehicle you are required to ensure it is adequately insured to protect the property and lives of others. The level of insurance cover you actually purchase is however your choice.

The reason car insurance is required by law, as we said is to protect the property and lives of others. We live in a world where technology is becoming more and more common place and vehicle transport is now the preferred choice for most people no matter what distance they need to travel, and one car per household member is very much common place. Because of this congestion has become a common phrase in the English language and as a result accidents are inevitable.

Without motor insurance the innocent could be left out of pocket and indeed left to fend for themselves if they have to incur medical expenses for any injury rehabilitation but fortunately the requirement by law for motorists to have insurance ensures cover is available to all third parties.

Guide to Car Insurance - Third Party Only

The most basic form of insurance that can be purchased and the most basic required by law is Third Party Only Insurance this basically means that all others are protected and covered by you causing any incident or accident. Because of its limitations in not providing the insured with any cover the premiums for Third Party Only insurance are often very cheap. Drivers with new or expensive vehicles would be ill-advised to even consider this type of vehicle insurance.

Guide to Car Insurance - Third Party Fire and Theft

Stepping up a scale we move onto Third Party Fire and Theft insurance this is effectively Third Part Only with some protection bolted on for the insured. As the name indicates fire and theft ensures that if the insured suffers from the vehicle being stolen and or burnt the vehicle can be repaired or replaced. This type of cover is very popular with younger drivers just starting out or for people with lesser value motor vehicles.

Guide to Car Insurance - Fully Comprehensive

At the top of the pile in terms of protection is Fully Comprehensive insurance. This type of cover allows the insured the luxury, if you can call it that of being covered for all the benefits of Third Party only, Third Party Fire and Theft and also for damage caused to their own vehicle. As you can image this cover attracts a more expensive premium but of course a more suitable type of cover for new and expensive vehicles. Other factors that affect the premium of car insurance are Excesses, an excess is the amount of money you are expected to pay in the event of a claim being administered. An excess is indicated at the time of quotation and there are essentially two types of excess, the compulsory and the voluntary excess which is the amount you can additional add to help reduce the amount of your initial car insurance premium.

Guide to Car Insurance - No Claims Bonus

There is an advantage to keeping a good clean driving record and that is you can earn what is called No Claims Bonus. This scheme is adopted by all UK car insurance companies and it essentially means that you can earn more discounts off your car insurance every year until you have attained what is called full or maximum no claims. This figure can vary from company to company and in sum cases exceed 70 percent which is understandably a very welcome discount.

If you would like more advice on how to save money read our section on How to save money Off Your Car Insurance which offers advice on what affects the price you pay on your car insurance premium.

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