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The Basics of UK
Car Insurance
Why Get Car Insurance in
the UK? Drivers in the UK should always have insurance. Anyone who is
caught driving without insurance, or with insufficient cover, is often
prosecuted aggressively. In addition to the damages that you will now be
held liable for, you can also face substantial fines, a hold on driving,
points placed on your license, criminal charges, and even the crushing
of your vehicle. There are many variations of any given insurance plan,
and when trying to understand the system as a whole, it is helpful to
begin with the basic types of insurance terms used in the industry.
It is helpful to keep in mind that the policy chosen will always reflect
the profile of the driver. Therefore, the more detail that you know
about your own profile, the more likely you will find a good policy. The
most straightforward way to look at car insurance is by breaking it down
into the major types of cover - such as short term car insurance which
you can buy from
here.
Imagine that each insurer is like a kitchen. Then, think of the types of
cover as the basic ingredients. Your specific plan is like the recipe,
and the final result when you sign the papers is the cooked cuisine. If
that is too much of a stretch, then by all means customize your
metaphor. The three essential types of cover to know about are:
Minimum Coverage
The minimum coverage allowed in the UK is called third party. This type
of cover makes sure that, in the event of an accident, the damages to
the others involved will be paid out. With this type of policy, you can
elect to have some of the other desirable features added on to your
basic cover on an as-needed basis. It is so very important to know what
risks you are taking by only having third party cover. It means that you
will have absolutely no cover for your own vehicle damages. More
importantly, you will have no personal injury cover. None.
Comprehensive
Sometimes called full risks cover; this type of insurance contract does
not cover every possible event. It is important not to be mislead by
this name. This policy is issued at the discretion of the insurer, who
will put any exclusions and excess in the small print. Usually, you must
pay the excess regardless of who caused the accident. This is the part
you should read first.
Breakdown
This is the type of cover you need if your vehicle is older, or you just
want to have the security of knowing that you will have someone to call
if anything were to malfunction out on the road. A restriction to this
is that you only have a limited number of claims you can make per year.
This number may vary somewhat, but tends to be around 5-6 claims. This
includes basic services like repairing a flat tire. You may want to ask
the insurer is how many petrols they provide per member.
Then you can compare this number against the other companies. The lowest
price is not always the most important consideration. There is often a
maximum amount of repairs the breakdown will cover; again, the premium
price should be just one factor to consider. A Breakdown Warranty will
let you know exactly what parts of your vehicle are covered, any
limitations or restrictions, and any other terms or conditions that
apply. You can expect discounts for breakdown cover if you buy online;
up to 40%.
After you become familiar with the basics, other types of cover become
easier to navigate. |
