The law says you must have motor insurance to drive. Some policies cover the replacement or repair of your vehicle, depending on the circumstances of an accident.
You can choose from three levels of cover:
- third party – this is the minimum legal requirement and covers you if you injure a third party (such as innocent bystanders, passengers or property), but does not cover damage to your vehicle;
- third party, fire and theft – covers third-party injuries and liabilities, and also fire and theft to your vehicle, but not accidental damage to your vehicle; or
- comprehensive – covers thirdparty injuries and liabilities, as well as fire, theft and accidental damage to your vehicle.
You pay a premium depending on various factors including the make of car, engine size, your age, your sex and where you live. The higher the excess you are willing to pay, the lower your premium will be. You’ll also tend to get lower premiums if you park your car somewhere secure (in a garage overnight, for example) or if you have a clean driving licence.
Depending on your claims history, the insurance company may offer you a no-claims discount. Some companies allow you to pay a sum to guarantee this discount.
Bear in mind you are paying to keep the no-claims discount and not to keep your premiums at a certain level – they may still rise, for example due to a general increase in prices.
If you use a comparison website, check the level of cover you are being offered, as the cheapest policy is not always the best.
Check – don’t forget that motor insurance does not cover you for breakdowns – you will need to take out separate breakdown cover if you want this.
See also :
Cheap Car Insurance – 7 Tips To Reduce Your Car Insurance Costs
What to do if involved in an accident with an uninsured driver ?
