What is Motor Insurance?
Motor insurance is insurance that is purchased for your car, truck van or motorcycle. It is designed to protect you against losses incurred from a traffic accident and against liability that could come about from an accident.
Who Needs Motor Insurance?
The Road Traffic Act requires that every vehicle in the UK that is taxed (licensed) must carry motor insurance that will cover you against:
Third party claims for injury or death.
Damage to property caused by your vehicle.
What Does Motor Insurance Do?
Motor insurance is designed to put you in the same financial position you were in before the accident or incident occurred. If you were involved in an accident and had no coverage it would cost you 1,000s of pounds of out-of -pocket funds that an insurance company would have covered.
What Are the Types of Policies?
In the UK there are four main policies available:
Act only: Act only is a minimal coverage that does not cover property damage. It carries only the minimum amount to be legal. Act only covers third party liability on public roads.
Third Party Insurance: This will cover you on private and public property and roads. It covers damages done or injuries to a third party. It pays for legal costs that arise from the accident. It does not cover damages done to you or your vehicle.
Third Party, Fire and Theft: This covers you against claims made against you by a third party and covers your vehicle against damages arising from theft of your vehicle or damages done if your vehicle is set on fire.
Comprehensive Car Insurance: This covers your car’s damages due to an accident, vandalism, theft and any other damages your car might sustain.
How Much Does Motor Insurance Cost?
Motor insurance has no one set price. There are many variables that affect how much your premiums will be. Things like:
Type and size of vehicle: The larger the engine and the sportier the car, the more insurance will cost.
How many miles you put on a vehicle each year: The fewer the miles the lower the premium.
What you use the vehicle for: If you drive the vehicle to work everyday it increases the likelihood that you will be involved in an accident.
Your age: young drivers pay higher premiums. They are high-risk.
Driving record: If you have a clean driving record your insurance will be less.
Where Should You Buy Insurance?
With the internet being so easy to access now, getting quotes, comparing, and buying the best insurance can all be done from your home. There is a wide variety of motor insurance companies listed on the world wide web and they all want you for a client. Compare policies and make sure you don’t just go for the cheapest, go for a company that offers you the best all round protection with a 24/7 help desk.
