Car insurance is an essential aspect of responsible car ownership. It not only protects you and your vehicle but also provides coverage for potential damages and injuries caused to others. With numerous car insurance options available, it can be challenging to determine which type of coverage is right for you. In this article, we will explore the various types of car insurance policies and help you understand which one suits your needs the best.
In the UK, it is a legal requirement for all vehicles to be either insured or declared as off the road (SORN – Statutory Off Road Notification) . The Continuous Insurance Enforcement (CIE)  regulations were introduced to tackle uninsured driving. It means that your vehicle must be insured at all times, even if it’s not being used. If your vehicle is not insured or declared off the road, you could face a fixed penalty of £100, fines of up to £1000 or even have your vehicle clamped, seized or destroyed.
The minimum legal requirement for car insurance in the UK is Third-party only insurance. This covers your liability for injury to others (including passengers) and damage to their property resulting from an accident caused by you. It does not cover any damage to your own vehicle.
The three main types of car insurance are third party insurance, third-party fire and theft and fully comprehensive car insurance. Read on for more details about each type.
Third-party only insurance covers damages caused to other people’s cars or property or injuries they sustain in an accident caused by your vehicle. The benefits of third-party only insurance are that it provides legal compliance with UK car insurance laws and allows you to drive on public roads.
However, it does not cover the cost of repairing or replacing your own vehicle if you’re at fault in an accident or the financial liabilities of any injuries you may sustain. You will also have to cover the cost of replacing your car if it is stolen and then damaged in an accident or fire.
Even though it is the most basic cover available, it is also often not a cheap car insurance option as providers see it as riskier.
Third-party, fire and theft insurance is a step up from the basic third-party only policy as it provides coverage for damages caused to other people’s cars or property and injuries they sustain and it also protects your vehicle against fire damage or theft. If your car is stolen, or damaged due to a fire, you can file a claim for its repair or replacement (after any excess is paid).
However, the main problem with third-party, fire and theft insurance is that it won’t cover your vehicle if you have an accident where you are at fault.
Comprehensive insurance is the most extensive and popular type of car insurance in the UK. It offers the broadest coverage including all the benefits of third-party, fire and theft insurance as well as covering the cost of repairing or replacing your own vehicle if it gets damaged in an accident, regardless of fault. Comprehensive insurance usually includes:
It is always important to check your comprehensive insurance policy as it may not cover every eventuality such as the theft of valuables from your car or the provision of a courtesy car after an accident. These kinds of extras can be added to your policy at an additional cost.
Possibly not. At one point, fully comprehensive insurance did cover the ability to drive other cars so it is important to check car insurance to make sure. In recent years, this has changed and now you are only insured to drive your own vehicle.
For an additional fee, there are other elements you can add to your car insurance policy to enhance your protection:
There are a number of factors which influence the cost of car insurance, and it is important to consider what factors may affect you before getting a car insurance quote:
A no-claims discount, also known as a no-claims bonus, is a discount offered by insurance companies to policyholders who have not made any claims during a specific period of their insurance cover. It is a reward for being a safe and responsible driver and the more years of accident-free driving you can accumulate, the cheaper your insurance costs will be.
Car insurance excess is the amount of money you agree to pay out of your own pocket when making an insurance claim before your insurance cover begins. There are two types of car insurance excess:
Yes. If you’ve got a provisional license, many insurance providers offer policies designed especially for learner drivers. However, as a learner driver, you must always drive under the supervision of a driver who is over 21, is qualified to drive the car you are learning in and has held their license for more than 3 years. Also, once you have passed your test, you must remember to inform your insurers so that they can change your policy accordingly.
A multi-car insurance policy allows you to insure multiple vehicles under a single policy. This kind of car insurance policy works for families with multiple drivers and vehicles who all live in the same household. There are a few caveats to a policy like this – there must be a main policyholder and the insurance premiums consider the driving history and experience of each individual driver. However, using a car insurance comparison site, multi-car insurance could end up being a cheaper way to insure your vehicles rather than having three or four separate policies.
Determining the right car insurance policy for you depends on various factors including your specific needs, budget, driving habits and tolerance to risk. On Free Price Compare, we can help you compare car insurance deals and car insurance quotes to help you find a policy to suit you.
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