What is Car Insurance?

The purpose of car insurance is to ensure that you’re covered if you have a car accident. In the UK, this type of cover is a legal obligation. Anyone who drives or owns a vehicle is required to get it – without exception. Those caught without car insurance can face fines up of up to £300 and acquire six penalty points. In addition, you may find yourself in court where you might receive an unlimited fine and be disqualified from driving.

What is Covered in Car Insurance?

Quite simply, if you have a car - get insurance.

Essentially, car insurance covers the costs acquired by injury to persons or damage to property should your vehicle have an accident. The car insurance policy you take out will determine whether or not you also receive compensation for damages. Not every policy was made equal, so reading the fine print is a must.

Types of Car Insurance in the UK

In the UK, you can choose from three different types of car insurance policy:

It is important to remember that most car insurance policies last for 12 months. This means that it will need to be renewed every year.

What is the Best Car Insurance?

When it comes to determining the best car insurance, it depends on circumstances. For example, young drivers may benefit from taking out a telematics policy; however, there are fewer financial benefits for older people. Thinking about your driving manner, where and what you drive aren’t the only important factors. Considering budget is also important. While third party may be the cheapest, you should weigh up the pros and cons. It may in fact surprise you to find out which policy offers better value.

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