Why Do You Need Car Insurance?

It is a Legal Requirement

By law it is a requirement for all motorists to be insured, so that you have a policy to cover you liability to other road users. This includes injury to others and damage to property. It is an offence to drive your car or allow others to drive it without insurance, and you can be fined and/or sent to prison for failure on producing a valid insurance certificate. This has been law since 1930, and was updated in the Road Traffic Act 1988.

get car insurance in case of car theft

Consider the scenario where you accidentally drive into another car without insurance. You may not be able pay for the cost of repair to the other driver's car, or any injury compensation incurred if they are unable to return to work immediately. Even if you consider your self to be a safe and careful driver and will not be the cause an accident, there are may ways where an accident can occur where you may not be the obvious guilty party but by law you may be liable. Examples may be bad road conditions such as icy road, avoidance of pedestrians or animals causing you to crash into another car.

So not only is your car insurance certificate is a very important legal document, it helps protect motorists and drivers against liability in the event of accidents they may cause. Also in order to get you car taxed, the post office will want to see your insurance certificate and MOT before they issue the car tax to you.

Types of Insurance

When insuring your car there are various levels of car insurance that available from your insurance. The minimum level know as Third Party, does not cover your vehicle, but only covers damage done to another vehicle or property, should you be liable. Any repairs required on your own assets must be paid out of your own pocket. This insurance is usually only taken on older vehicles, where the cost of repair is cheap relative to the cost of the insurance policy. This policy offers protection against legal liabilities as well as covering third party claims.

The next level up is Third Party, Fire and Theft. This is similar to Third Party insurance, but has the additional benefit of covering your vehicle should it be stolen or burnt due to some engine failure or vandalism.

Finally, Comprehensive insurance the highest level whereby you and your vehicle are covered as well. This is the most popular form of cover as it covers you against any accidental damage that you may cause to your car. Of course, this added cover also increases the cost of the policy, but if you want to be covered against as many risk as possible, then comprehensive insurance is the best solution. This is especially more of a necessity for newer cars, where the cost of repair can be substantial.

On top of the features that the policies offers, many insurers offer added benefits that differentiates them from each other, in addition to just policy price. These can include free roadside assistance cover or courtesy car while your car is being repaired. So shop around when looking for your car insurance for the best bargain and benefit.