Car Insurance

What is car insurance?

Car insurance is one of the largest forms of insurance in the UK, and is a legal requirement to drive a car on the road. Car insurance provides insurance for the car, and driver as well as anything that the car may hit.

If someone who has car insurance has their car stolen or vandalised, hits another car or object, then their car insurance company will pay for any damage, assuming there was no driving offence being committed at the time.

Certain types of car insurance will also pay for any damage to your own car, as a result of a crash or collision, which was the customer’s own fault.

Types of car insurance

There are two different main types of car insurance. Fully comprehensive car insurance, and third party, fire and theft car insurance. Third party, fire and theft car insurance will insure your own car against fire and theft, and any third party vehicles, objects or people against damage you cause to them, caused through your own fault.

Third party insurance does not insure your own car when it is involved in an accident that was your own fault, and is common only really for people who drive cars with little or no value.

Fully comprehensive car insurance looks after both third parties and your own car in an accident or collision, and is the most popular form of car insurance. It is also more expensive, but for those who drive cars of any value is essential.

Car insurance additions

Car insurance policies may also included optional extras, including breakdown cover, which will provide you with a basic repair or tow service should your car breakdown, as well as audio electrical cover which insures your sound system and speakers separately.

Some policies will include optional handbag insurance for women, and legal cover insurance for any legal fees you may incur as a result of being involved in an accident.

No claims bonus

Car insurance providers offer discount for those who haven’t made a claim recently, worked out through a no claims bonus scheme, which builds up in one year increments. The more years no claims bonus you have, the less you will pay for your insurance.

Speeding fines, previous claims and any driving convictions will make your car insurance more expensive as you are deemed to be a higher risk driver by the insurance company.

Get the Car Insurance Quotes with insurer.org.uk