Car Insurance

Car insurance is the most common form of insurance required by people in the UK and is a legal requirement for owning and driving a vehicle. Car insurance covers three main risks in owning a vehicle.

Following an accident, insurance will cover the cost of repair

If your vehicle is stolen or damaged, insurance will cover the cost of purchasing a replacement

Insurance will also cover the legal liability of the driver or owner of the vehicle for damage or injury to a third party.

Fully comprehensive insurance will cover all three aspects, whereas third party insurance will only cover the third risk. There is the added risk on brand new cars that due to the fast depreciation on the value of the vehicle, that if a new car is involved in an accident, the insurance pay out may not cover the full value of the car or the repayments outstanding on any loan.

Car insurance premiums or payments are based on a risk assessment the insurance company makes of you when the policy is being taken out. Various aspects are taken into consideration such as the make, model and age of the car. Also the amount of usage the car is expected to have for the year and the profile of the driver/drivers in terms of age, sex, status as well as previous driving history and insurance record.

There are now insurance companies that specialise in offering people who attract the highest premiums, such as young drivers or people who have not got any no claims discount, a better deal.