Auto Car Insurance

Types of UK Car Insurance

UK car insurance falls into three major categories:

Third Party Only

Choosing Car Insurance in the UK

This is the minimum level required by law, and it covers your liabilities to other parties in the event of an accident. Although cheap, it doesn’t cover damage to your own car, and is only recommended for low value vehicles.

Third Party, Fire and Theft

This insurance also covers your own vehicle against fire damage and theft. It is relatively inexpensive, but you’ll have to pay for your own repairs after an accident.

Fully Comprehensive

Fully comprehensive car insurance also covers accidental damage to your own vehicle. It is the most expensive option, and is recommended for relatively valuable vehicles.

Most policies include some cover for the windscreen and windows, but exclude general wear and some other types of damage. The insurer usually organises repairs, or will replace your car if it is damaged beyond repair.

You can also purchase additional cover for specific situations:

Breakdown

Breakdown organisations may offer a better deal, so shop around first.

Legal

Legal cover pays some or all your legal expenses if you become involved in a lawsuit following an accident in your car.

Courtesy car

Some comprehensive car insurance policies charge extra for a courtesy car, but you may opt out.

Other vehicles

Some car insurance policies provide minimum cover for driving vehicles that don’t belong to you.

Medical

Car insurance policies must cover the cost of emergency treatment. Some also compensate you for serious injuries, and/or contribute to other medical expenses, which have resulted from a car accident.

Driving abroad

Most car insurance policies allow you to drive in Europe for a limited time. The cover is usually equivalent to third party only, and comprehensive normally costs extra. You should notify your insurer before you leave.

Other drivers

Adding drivers to your car insurance policy may affect the premium, depending on their circumstances. Some insurers allow named drivers to accumulate no claims discounts that can be transferred, should they take out their own policy.

Other situations

Some policies provide cover while your car is being serviced, trailer cover, replacement of child car seats, and/or replacement of locks after theft. Audio equipment and personal belongings may be included, but claim limits are normally low. If you want to use your car for business, you will usually need additional cover. Discounts may apply if you have home insurance or a second car that’s insured with the provider.

Choosing Car Insurance: Other Considerations

No claims bonus

If you don’t claim on your car insurance, you’ll accumulate a discount of up to 70% against your premium. Those with good records can take out insurance to cover the bonus in the event of a claim, or may eventually have the bonus guaranteed for life.

Vehicle excess

An excess means that when making a claim on your car insurance, you must pay some of the cost yourself. The amount depends on your circumstances, and you can also accept a larger excess in return for lower premiums.

Payment options

Sometimes you can pay your car insurance premium in monthly instalments, although a fee or interest may be charged.

There are many different car insurance [http://www.co-operativeinsurance.co.uk/servlet/Satellite/1195118367425,CFSweb/Page/Insurance-Car] policies on the market, so it’s important to shop around before choosing one. Make sure that you choose a policy that offers you the cover that you want – remember that when choosing car insurance, the cheapest policy may not always be the most suitable. It’s also important to choose a reputable car insurance provider.