What You Want to Know About Car Insurance

You must have a car insurance by law. Find out how to get the best car insurance, including comparison websites like Quote Radar, where to get help, and what else to think about when purchasing around.

Why Car Insurance Is Important

Car insurance protects your finances in case you get into an accident. Some kinds also cover claims that come from other people getting hurt.
Even if you don’t drive your car, third-party insurance is required by law if you own a car that can be driven on the road.
You don’t have to do this only if you get a Statutory Off Road Notification for your car (SORN).

Photo by Samuele Errico Piccarini on Unsplash

If you drive without insurance, you could get a fine and at least 6 points on your license, or you could even lose your license. Your car could also be taken away from you.

What Kinds of Car Insurance Are There?

Car insurance comes in three different levels:
. Fully comprehensive
. Third-party, fire, and theft.
. Third-party

Fully comprehensive
It is the top rank of coverage you can get. It encompasses you, your car, and anyone else in an accident with you or your car.

It covers the same things as a third-party fire and theft strategy, but it also helps protect you as a driver and might pay for damage to your vehicle.
It could also pay for medical care, legal fees, and damage caused by accidents.

You Can Make a Case For:

Repairs after an accident, damage by accident, or vandalism, like if someone scratches your car on purpose.

It could mean you can legally drive other people’s cars if they let you.
But this type of insurance usually only covers third parties. This means that you won’t be covered if you damage the car while you’re driving. Check the details of your policy carefully because they are all different.

Even though it covers the most, fully comprehensive insurance doesn’t have to be the most expensive.

Third-Party

This is the least amount you can have legally.

It protects you against the costs of hurting or damaging other people or their property. But if your car is broken into or stolen, it doesn’t protect you.
Even though it’s the least coverage you can get, that doesn’t mean it’s the least expensive.

So it might be best for people who have trouble finding affordable full coverage insurance.

This Could Happen:

You do not have a no-claims bonus.

You live in a place where crime and other dangers are common.
Your vehicle is worth just under £1,000, and you can afford to buy another if you get into an accident.

Third-Party, Fire, And Theft
As with third-party insurance, this covers damage to other people’s cars but not your own.

It’s different because it pays to fix or replace your car if it’s damaged by fire or stolen.

Again, this isn’t always less expensive than full coverage, so compare prices.
What Is a No-Claims Bonus, And How Does It Work?

This is the price reduction you get from your insurance company if you don’t make a claim. The discount goes up every year if you don’t make a claim.
It can also be generous, with discounts usually ranging from 30% after a year to 65% more than after five years.

But if you are in an accident and file a claim, you usually lose your no-claims bonus & your premium costs go up for the next two years.
You could forfeit your no-claims bonus if you have more than one accident in a year.
Even if you don’t file a claim, you should let your insurance company know about any accidents you’ve been in. Any claims you make after that might be turned down if you don’t do this.

You can pay for an add-on called “no-claims discount protection” to protect your no-claims bonus. This means that you can make claims and won’t hurt your bonus.

Most of the time, you can make one claim per year or two claims every three years without having lost your no-claims bonus.

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