Car insurance is amust have legal requirement for all motorists so that any implications resulting from a road traffic accident (RTA) can be resolved to the satisfaction of both parties.
Car insurance should be seen as a guarantor that defends all passengers, pedestrians and motorists from any physical or financial losses.
A motoristwho is caught without car insurance faces severe fines, penalties to their licence, and even disqualification. The Police Force also has the right to impound a vehicle. In the event of an accident, stricter penalties are applicable and jail terms are common if the accident results in loss of life.
If a vehicle is kept indefinitely off the road then it does not need a car insurance policy but does need a Statutory Off Road Notification (SORN). If the vehicle is stationed on a public road, even if it is not driven, it will need a car insurance policy.
If a vehicle under a Statutory Off Road Notification order is used on a public road it will need full insurance first.
Comprehensive policies are all-inclusive and insure your car against accidents that occur due to a fault of your own or another. In some instances, add-ons can be incorporated in to the policy such as roadside assistance.
Third party insurance with protection against any damage incurred due to theft or fire.
The minimum requirement for vehicles, third party insurance will cover you in the event of an accident with another, compensating the cost of the other vehicle. The person holding the third party insurance policy receives no remuneration for damage to their own vehicle.
Insurers equate many different variables when determining an insurance premium, and can include followings:
The excess is the amount of money which will have to be paid in the event of any insurance claim. Voluntary excess places the decision in the hands of the policy holder, whereby the amount can be ascertained by them along with whether the excess is included in the policy. Compulsory is determined by the insurance company and needs to be paid according to their parameters.
Experimenting with the excess amount can save you money on insurance premiums, so shop around and compare the best quotes.
No-claims bonuses are simple; for every active year of the premium whereby no claim is made, a discount is applied in the following year. This works on a rolling basis year by year.