Car Insurance

Car insurance has been required by law since 1930 in the UK and every person who uses a motor vehicle is required to have an insurance policy. Not only is car insurance necessary according to the law, it is essential if you get into an automobile accident and need to pay for damages. If you do not have car cover, you can have your assets seized and your money garnished to pay off damages caused by a car accident that is deemed to be your fault.

If you have a car accident, car insurance covers a variety of problems including damage to your vehicle, damage to other vehicles and damage to yourself and others personally. There are a variety of different insurance policies and the rates differ based on the coverage provided along with your age, gender and driving experience.

Basic Car Cover

Some insurance policies cover more than others. The minimum car insurance required by UK law is third party insurance cover. When you get into an accident with a third party, a third party insurance policy pays for damage to the other person's car, medical claims or injuries suffered by the occupants of the other vehicle and medical claims or injuries suffered by occupants of your own car, other than you. A third party insurance policy does not cover the damage to your car, your medical expenses, theft or repair if you vehicle is set on fire.

Third Party Fire and Theft Car Cover

Third party fire and theft car cover will pay for the damages to a third party's vehicle, injuries to the people involved in the accident other than yourself along with the cost of damage to your car if it is stolen or goes on fire.

Fully Comprehensive Car Cover

For complete protection, you can choose comprehensive car cover, which is also referred to as fully comprehensive. When you have this type of policy, it will dover the cost of all damages and injuries suffered by both you and a third party, no matter who is deemed to be at fault for the accident. Additionally, fully comprehensive car cover will also pay if your car is set on fire or gets stolen.

Specialised Car Cover

There are also specialist insurance policies available if you drive certain types of vehicles. This insurance is meant to take car of specialized needs and may also offer a discount on the price you pay for car insurance.

Examples of specialist car cover include:

- senior insurance - for people over 50 years old, who often enjoy lower rates because of their experience and the lower instances of accidents in this age group;
- women only insurance – low cost insurance polices for women, who are considered less risky than their male counterparts;
- student insurance – designed specifically for student drivers;
- young drivers insurance – policies that are geared for younger drivers who are under 25;
- commercial vehicle insurance – covers vehicles owned by a company rather than an individual;
- classic insurance – covers cars that are considered vintage and classic; and
- motorcycle insurance – a policy just for motorbikes.

Getting the right car insurance will cover expenses in case an accident occurs and protects your assets from being seized. Not only is it the law to have car cover, it is a wise financial decision.