I Am New To Insurance, What Do I Need To Know

protecting a family

Car insurance is mandatory not just in the United Kingdom but any part of the globe, where you choose to drive a car. What is car insurance basically? A car insurance policy will cover you in the event of any damage, death, or injury that is caused to another individual that has been inflicted due to your fault. Apart from that, you will also be covered for costs or expenses that you incur for repairing or in the event your car gets stolen. You might as well opt for a policy that will offer coverage/protection if you are in the driver’s seat of a vehicle that does not belong to you.

As such the importance of car insurance cannot be undermined. But how will you know which type of insurance is best suited for you? Let us delve deeper into the same.

Types of car insurance in UK

If you are residing in UK, there are 3 types of insurance you can select from when you are planning to insure your car. These are comprehensive, third party, theft, fire, and third party.

  • Third party –In this type of warranty coverage, you are covered for damages caused to others where you are responsible but this type of coverage is quite expensive. Moreover, for thefts and repair work for your car, you have to bear the expenses, which will not be covered.
  • Third party, fire, and theft – You are covered for damages caused by theft, fire, and also conditions included in third party car insurance.

Is car insurance mandatory?

It is mandatory to buy insurance that will offer coverage for your vehicles.  An individual that fails to abide by the norms laid down by the CIE or Continuous Insurance Enforcement will have to pay a fine of £100 (penalty notice-fixed) or even have to pay a fine as high as £1,000. Alternatively, a car that does not have insurance can also be clamped under certain circumstances.

Most importantly, if your car isn’t insured and you happen to get involved in any accident while driving, you will have to bear the entire cost of repairing your vehicle and in extreme cases pay for the medical bills in case there was injury during the accident apart from paying for the damages caused to the car during the mishap. And don’t be surprised if you have to pay few thousand pounds for the same.

Cost of car insurance

For many car owners, the type of car insurance they buy is determined to a great extent by the cost of the insurance. You will come across many vehicle owners that will compromise on the coverage so that they have to pay less for the policy but that is not desirable. There are few factors that will decide the cost of the insurance policy and these are-

  • The type of vehicle you drive
  • The insurance group you are assigned to
  • Size of engine
  • The company from which you buy insurance

However, it is best not to compromise on safety so that you don’t have to regret later on.