If you wish to drive a motor car on the roads of the United Kingdom you must according to the terms of the Road Traffic Act, be in possession of a valid certificate of motor insurance. Any failure to abide by this legislation is considered to be a very serious offence which upon conviction can lead to a heavy fine, penalty points on your driving licence and a period of disqualification from driving.
Motor vehicle insurance comes in three generic types that are referred to as:
• Third Party Only cover
• Third Party Fire and Theft
• Fully Comprehensive cover
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A Third Party policy is the absolute minimum insurance that will allow you to legally use a vehicle on a road.
It specifically covers the policy holder for any claims arising from personal injury to any person (including the policyholder's passengers) and for any damage caused to another person's vehicle or other property as a result of a collision. |
It does not however provide cover for the cost of repair to the insured vehicle itself or for the damage to the insured person's property, or their medical costs. Neither will it compensate the policyholder if the insured vehicle is stolen or is destroyed by fire. This level of insurance is generally the cheapest form of insurance and is commonly held by young or novice drivers or the owners of older, less expensive vehicles. A Third Party Fire and Theft policy provides exactly the same level of insurance cover as Third Party only, but with the additional benefits - as its title suggests - of reimbursing the policyholder if the insured vehicle is stolen or catches fire.
A Fully Comprehensive Policy covers everything that a Third Party Fire and Theft policy includes as well as providing for the repair or replacement of the insured vehicle. Within certain limits, this applies no matter how the damage was caused. Policies of this type often also provide cover for the medical costs of the policyholder if they sustain injury as a result of a collision. This level of insurance is naturally the most expensive of the three.
Deciding on what level of insurance you require is not always an easy task. There are many factors that need to be considered such as the age, type and value of the car involved. Then there is the age, experience and claims record of the driver to be taken into account. While motoring insurance is not cheap, it is a statutory requirement that any driver would be criminally stupid to ignore. There are many companies that provide car insurance and a little time spent researching the various benefits of a different company's products and getting quotes can prove financially rewarding as costs vary significantly. There will be many questions that you have to answer before any company will take your business, but it is important to be truthful in your answers or your policy may be invalidated.
Finally, whichever insurance company you choose, do read the conditions carefully. Each company provides different benefits, so make sure the policy you pick provides for your personal needs.
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