Road Traffic Act, Motor Insurance is required by anyone who is either driving or keeping a vehicle on the roads. With this insurance you are protected from any damage you cause to others and their property.

You are only required to be insured against your liability for injuries and damage you cause. It is prudent and recommended to take out insurance that protects you and your property from any accidents.

Do I need insurance?
What levels of coverage are there?
What factors will affect the cost of my insurance?
How do I keep my insurance cost as low as possible?

Do I need insurance?

Motor vehicle accidents are frequent and your insurance is designed to protect you from their financial costs. According to the Association of British Insurers (ABI) in 2006, the insurance industry paid out over £18.7 million in private motor car claims, with more than one in six private drivers making a claim each year.

If you cause a collision while driving uninsured, you will not only have to cope with the costs of damage to your car but you can be held legally responsible for the cost of providing care and compensation to any others injured or for any property you damaged. Your possessions could be taken and sold to pay for these costs.

After your home, your vehicle is probably your most expensive purchase. Damage caused by or done to it could be financially crippling, so not only is it a legal requirement but insurance offers you peace of mind that should an accident occur you are protected. Top

What levels of coverage are there?

There are three common types of motor insurance and each offers a varying level of cover. They are: third party, third party: fire and theft, and comprehensive.

Third party insurance covers the minimum required by law. It pays compensation to anyone else who was injured or had their car and property damaged.

Third party: fire and theft insurance offers all of the protection that a standard third party policy does but also pays out compensation for damage done to your car by fire or theft.

Comprehensive insurance offers the same level of protection as fire and theft but also protects you against accidental damage. Comprehensive cover usually covers personal belonging in the car as well.

Some types of insurance will cover you even if you are driving another person’s vehicle, with their permission of course. The coverage, however, will probably be limited to third party insurance even if you have a comprehensive policy.

Your policy may also cover your for any legal expenses as standard or as an optional extra.  Legal expenses insurance covers the cost of legal advice and the legal costs of pursuing action arising from a collision.   Top

What factors will affect the cost of my insurance?

Insurers will take into account a number of facts about you before setting the cost of insurance. Cost can vary according to age, experience, previous claims and the cost and type of vehicle itself.

Your age is probably the most important factor an insurer will consider, the younger you are the higher your premium will be. The ABI says this is because young drivers are twice as likely to make an insurance claim and the average claim made by younger people is up to three times more than that made by other drivers. Top

How do I keep my insurance cost as low as possible?

Discounts on certain policies may be offered if your car has additional security features. These range from simple wheel locks to vehicle tracking systems. Storing your vehicle in a garage may also lower the costs.

Many insurers will also use the mileage of a vehicle to determine the premium. Drive less often and the premium could be lowered.

Insurers will almost certainly take your previous claims record into account and offer substantial discounts to drivers with a no claim record. Top