Motor Insurance UK

In the UK, by law, you must have some form of insurance on your car. If you are caught driving without any insurance coverage, penalties can include prison time, so take this law very seriously. Even if car insurance weren't required by law, it makes sense to have proper and appropriate insurance coverage for car. You may think you are a good driver, but what about other drivers?

Many people believe that all car insurance is the same, but this is not the case. Believe it or not, car insurance is one of those areas, where it really pays to do some research and comparison shopping. Insurance cover varies a great deal, but basically you get what you pay for. First, you need to decide what type of policy suits your needs, as well as your budget. There are three types of car insurance policies on the market: Third Party, Third Party Fire and Theft and Comprehensive.

The most basic car insurance coverage you can purchase is Third Party. What this policy covers is the damage to a third party. This means that if you cause an accident, your car insurance policy will cover the damage to the other car, as well as injury to the person driving the car. It does not cover any damages to yourself or your car. Also, if your vehicle is stolen or damaged, this policy will not cover you for these events. So, who would buy Third Party insurance? Well, it could be a cost issue. If you are young and have just gotten your driver's permit, then you are in what insurance companies call a a high risk category. Comprehensive or other cover may simply be too expensive. If you have a high claims record, Third Party may be the only policy an insurance company may offer you. Perhaps you have other private medical coverage or may not be too concerned about damage to your car.

Third Party Fire and Theft, is an addition to the Third Party coverage and provides insurance coverage, additionally, against theft of your car or damage caused by a fire.

The most expensive and highest level of insurance cover is provided by a Comprehensive car insurance policy. Such a policy will cover the third party's vehicle and person, as well as damage to your vehicle, yourself and will also include theft and fire coverage. However, Comprehensive cover also varies greatly in price and scope of coverage, so make sure you shop around and read the fine print so that you know exactly what you are being covered for.

Choosing A Motor Insurance Company UK

When buying motor insurance, it is important not only to look closely at the insurance policy and the price, but it is almost as important to look at the insurance company that is issuing your motor insurance policy. This is because you are going to rely on the company that issues your insurance policy to honour their part of the contract as well. This means that they will pay out on your policy if you submit a claim, or that they are financially sound to stay in business even if they receive many claims.

Nowadays there are thousands of insurance companies offering motor insurance coverage. This includes traditional insurance companies that have branches in your high street, but also new insurance companies that may not have any branches but use the internet to provide cost effective motor insurance coverage. Your high street insurance company may not be cheap, but they have been around for a long time and may provide other services, such as 24-hour accident hot-line or quick claims process. On the other hand, internet-based insurance companies carry very low overheads, which means that they can offer you much cheaper motor insurance coverage than your average high street insurance company. But it may be a company you have never heard of. Some may be 'online brokers' acting on behalf of a major company.

How can you be sure that you are getting quality coverage from a good motor insurance company? Well, you can never be 100 per cent sure that an insurance company will not go bankrupt. If they suddenly receive an inordinate amount of claims, any insurance company may go under. The UK government strictly regulates the insurance market, so finding a reputable insurer and avoiding dodgy insurance companies isn't too difficult. A quick and easy check is to find out if the motor insurance company you are dealing with is a member of The Association of British Insurers. Insurance companies that are members have to adhere to strict guidelines and are registered with the association. This will give you a level of quality you can depend on. If you are still unsure, talk directly to the motor insurance company you are dealing with and ask them for membership details to any associations or trade groups. Ask if they are certified by any government agency or can give you other reassurance about the financial state of their company. If a motor insurance company does not take your concerns seriously, take your business elsewhere.