Car insurance is compulsory in the UK. You are required by
law to have a policy to cover your liability to other road
users.
The Road Traffic Act requires all motorists to be
insured against their liability for injuries to others
(including passengers) and for damage to other people's property
resulting from use of a vehicle on a road or other public place.
It is an offence to drive your car or allow others to drive it
without insurance.
Owning and driving a car means taking
on many risks to yourself and others. When a traffic accident
happens, damage, injuries, loss or all of these factors may be
inflicted upon you and others. Damage and loss of your property
may also occur. Fire, theft, vandalism and natural disasters are
other possible risks.
Car Insurance protects motorists
and drivers against liability in the event of accidents they may
cause. It can also provide cover for the motorist's own vehicle.
Car insurance is what safeguards you against loss due to traffic
accidents, thefts or other reasons. Taking out car insurance is
very important as insurance is what secures you from economic
loss or damages. In case you do not have car insurance and you
are involved in an accident, in spite of who is at fault, you
will be paying the compensation concerned with damages. Car
insurance is designed to protect yourself and others against
these risks.
Many different types of cover are
available, ranging from third party cover which protects
individuals against liability should they injure a third party
or cause damage to a third party's property, but does not
provide any cover for the individual's own vehicle or property,
through to comprehensive cover, which can offer protection for
accidental damage, theft, fire damage as well as liability
towards third parties. The minimum legal requirement for car
insurance to drive in the UK is Third Party Only,
Car
insurance is a contract between you and the insurer, specifying
each party's rights and obligations. Essentially the car
insurance company promises to provide specific coverage for you
in return for your payment of the car insurance premium.
It is vital to know what your car insurance policy covers. It
could be a complete and comprehensive policy that covers you for
all risks that might be surrounding your car. The basic
requirement is that in the event of an accident, you are covered
for the compensation that you may have to pay for injury to
other people and their vehicle. This is an amount that could run
into several thousands which will be covered in the car
insurance policy.
There are two main types of car
insurance policies available in the UK :
Third Party
Third party insurance covers the insured when driving on private
property as well as on public roads. This policy offers
protection against legal liabilities as well as covering third
party claims.
Comprehensive
Comprehensive insurance
cover is the most popular form of cover, the most important
addition being accidental damage cover, where policyholders can
get their own vehicle repaired in case of damage. For people who
want to be covered against as many risks as possible, then
comprehensive policies is the solution.
You should read
your car insurance policy carefully to ensure it gives you the
level of cover you are seeking. There should be no small print
or difficult language in modern insurance policy documents. If
you are unsure about what the policy does or does not cover then
just ask your insurer or insurance adviser to explain.
About the Author:
John Mussi is the founder of Direct Online Loans who help UK
homeowners find the best available loans via the
www.directonlineloans.co.uk website.
