can be intimidating with so many different types of cover and so many policy
options available. Here we look at the basics to help you make an informed
decision about the right deal for you.Do you need car insurance?
Car insurance is a legal necessity in the UK – at a minimum; it ensures that costs of any driving related damage or injury to a third party are covered in the event of an accident
What types of policy are available?
There are three types of car insurance cover available – these are:
- Third party only: This covers liability for injuries to
others, damage to their property and liability while towing a caravan or
trailer. This is the minimum level of cover required in the UK.
- Third party fire and theft (TPFT): Adds cover for fire
damage, theft and theft related damage to third party cover.
- Comprehensive: In addition to TPFT cover, a comprehensive
policy will usually include loss or damage to your vehicle, personal
injuries, windscreen cover, accidental damage and other policy options
that differ from insurer to insurer.
What do you get when you take out car insurance?
When you take out car insurance you should receive a certificate of
insurance, a schedule and/or policy document and a policy booklet.
The certificate is evidence that you are legally insured, while the
policy document outlines the full terms and conditions of the policy. The
booklet tells you exactly what your policy covers and what to do in the
event that you need to contact the insurer.
How do you choose the right policy?
There are a number of factors to consider when choosing car insurance
including:
- Standard cover: Look to see what is included as standard in
the policy if you’re taking out comprehensive cover as this can vary
from insurer to insurer. Don’t assume that the cheapest deal is always
the best as you may be able to find a more comprehensive policy for just
a little extra.
Optional extras: Some insurers offer ‘optional extras’ – these are
add-ons to a policy for which you will pay an additional premium. Consider
which of these, if any, you want to pay for. Typically these can include
legal expenses cover, breakdown cover and no-claims discount protection.
