Motor Insurance Frequently Asked Questions
What is Motor Insurance?
If you own and drive a car then you take on risks to yourself and others on the road. When an accident happens, damage, injuries and loss could all be inflicted on yourself and others on the road.
Many different types of cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party's property, but does not provide any cover for the individual's own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties.
Motor insurance is a contract between you and the insurer, specifying each party's rights and obligations. In return for your payment of premium, your insurer promises to provide specific insurance coverage for you. It provides financial cover and can also offer other services such as a hire car where necessary if your car is off the road being repaired.
Do I need it?
The Road Traffic Act requires all motorists to be insured against their liability for injuries to others (including passengers) and for damage to other people's property resulting from use of a vehicle on a road or other public place. It is an offence to drive your car or allow others to drive it without insurance.
The minimal legal requirement to drive in the UK is Third Party Only, this insures against loss and injury to others. If you are the cause of an accident the insurer will pay your liability to other people involved in the accident. Be aware that Third Party Only does not cover for damage, loss or theft to you, your car and your possessions. What do I need to know? When you purchase Motor Insurance, your insurer will usually issue two documents:
The Certificate of Insurance - this is evidence of insurance as required by the Road Traffic Act.
The Policy Document - sets out in full the terms and conditions of your policy.
Read and make sure you understand your insurance policy document. If there are insurance terms you are not sure of then check the explanations in the Insurance Glossary
How to choose the right policy for you?
The higher the level of cover the higher the cost so assess the value of your possessions and car and decide how much cover you are prepared to pay for. Below outlines the different types of cover available:
Comprehensive Motor Insurance Policies usually cover:
- Liability for injuries to other people, including passengers
- Liability for damage to other people's property
- Liability of passengers for accidents caused by them
- Fire damage and/or theft
- Accidental damage to your own car
- A personal accident benefit - certain amounts are paid on death or specific permanent disablement of the policyholder Medical expenses necessarily incurred, up to a stated limit
- Loss of or damage to personal items in the car, up to a limit.
Third Party, Fire & Theft Insurance Policies usually cover:
- Liability for injuries to other people, including passengers
- Liability for damage to other people's property
- Liability of passengers for accidents caused by them
- Liability arising from the use of a caravan or trailer, while attached to the car
- Liability arising from losses in the event of fire or theft to your vehicle
Make sure you have all the information you need before getting a quote using our Motor Insurance Checklist
Where do you buy your insurance?
Make sure you shop around and get at least five or six quotes to ensure you are getting competitive quotes. But don't just look at the price, check what is covered under the policy, the size of your excess and the service add ons such as courtesy cars.
AsRecommended can reduce the amount of time and money you spend on comparing quotes by bringing you the UK's leading companies and providing you with all the online links, phone numbers and information you need to get the cheapest quotes.
To reduce your quote check out our Cost Reduction Tips
The opinions expressed are those of the author only. The material is for general information only and does not constitute legal, financial or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation by an FSA authorised company where the market is FSA regulated.