Car Insurance
In order to stay legal and comply with the Road Traffic Act, anyone who uses a car or any other motor vehicle on a road or any other highway to which the public have access, must be in possession of a valid certificate of motor insurance covering the use of the particular vehicle that they are driving. The same rule applies to vehicles that are simply parked on the road, even if there is no intention of driving them. If the owner of the vehicle fails to obtain the necessary insurance certificate, they may receive a fine, penalty points on their driving licence and be sentenced to disqualification from driving. Furthermore, if they are using an uninsured vehicle on the road and an accident occurs involving injury to any person or damage to another vehicle or property, then the person driving can be held personally liable and be sued for damages and the cost of the repair.
There are effectively three main types of motor vehicle insurance. They are generally known in the insurance business as follows:
Third Party Only: This type of policy provides the absolute basic legal cover before a motor vehicle can be used on the road. Naturally it is the cheapest form of policy and covers the policyholder in the event of any injury or damage caused to another person's vehicle or property - including the passengers in the insured vehicle. This means that the cost involved in the repair or the other person's injury claim will be covered by the insurance. The cost of the repair to the policyholders property however will not be covered. It also means that there will be no compensation from the insurance company if the insured vehicle is stolen or catches fire.
Third Party Fire and Theft: This type of policy provides exactly the same level of cover as Third Party Only, with the addition of cover against the insured vehicle being stolen or catching fire.
Fully Comprehensive Insurance: This provides the same level of insurance cover as Third Party Fire and Theft but importantly allows the policyholder to claim for the expenses involved in the repair or replacement of the insured vehicle itself, whatever the cause of the damage (within reason), together with the insured person's medical expenses. This type of policy is generally the most expensive.
The decision as to which is the most suitable type of insurance is entirely up to the individual car user. Cost is often a major factor together with the age, experience and driving history of the driver of the insured vehicle; the type and value of the car to be covered and the area in which it is used and kept. There are many ways in which discounts can be obtained from one of the numerous insurance companies who deal in motor policies.
It is often cheaper to buy car insurance 'on line'. Most companies will reduce the cost if you keep the vehicle securely garaged when not in use and have it fitted with good securities such as alarms and immobilisers. There are many other ways of keeping the price down, so do check out what the different companies can offer. Remember to answer their questions truthfully or you insurance may be invalidated and do check the conditions of any policy before agreeing to the terms.
For an online car insurance quote, click here.
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