Car Insurance: A Brief Guide

Car insurance is a legal obligation; it is illegal to operate a vehicle without having the right insurance in place. However, a lot of new drivers are only aware of the basics when it comes to car insurance policies which can lead to confusion when it comes to making a claim. Luckily, we have put together the following guide to teach you a little more about car insurance policies and what they will mean for you. Keep reading to learn more.

The Importance of Insurance

As mentioned above, car insurance is a legal requirement. All roadworthy cars – even if you aren’t driving them - need to be insured in some capacity, regardless of the coverage level. There is one exception to this if you have officially registered your car as off the road with a SORN notice, then it doesn’t need to be insured.

Types of Coverage

There are three different levels of coverage when it comes to car insurance. The minimal level of coverage is known as third-party coverage. You are only covered for injury or damage caused to other people or property in the event of an accident; you and your vehicle have no cover. It is often, but not always, one of the cheaper options.

The next step up in coverage level is third party, fire and theft. Again, other people are covered, but your own vehicle is only covered for instances of fire damage or theft. It is often seen as a midpoint between the two both in terms of coverage and price; however, it is not necessarily that much cheaper than comprehensive cover.

Fully comprehensive is the highest level of coverage available. It covers everything mentioned above as well as you and your vehicle should you be involved in an accident. In some instances, you could also be entitled to make a claim for medical treatment, legal expenses and accidental damage, although you will need to read the fine print of your policy to know for sure. Depending on the provider, you can even find coverage tailored to the make and model of your vehicle; for example, if you wanted car insurance for Peugeots, you could get Peugeots car insurance with Quotezone.co.uk.

No Claims

Your no-claims bonus builds up over time; for every year you don’t make a claim on your policy, you receive a discount on your premium. Depending on the provider and how many years you have, it can be incredibly generous too. Unless your no claims bonus is protected, when you make a claim, you will then have to start again from the beginning and build your no claims back up.

Excess

The final element of car insurance to explain is the excess. Whenever you take out a car insurance policy, there will be a fixed amount that you will be liable for when you make a claim. The amount varies depending on the insurance, level of coverage and whether you have agreed to a voluntary excess too.

To Conclude

Driving without insurance has a number of consequences ranging from fines to points on your licence or even a driving ban or vehicle seizure. Car insurance provides financial protection in the event of a car accident, regardless of who is at fault. Understanding more about your policy can help to ensure that you have the coverage that you want.