Car Insurance
 Introduction It is illegal to drive a car in the UK without appropriate car insurance. This insurance not only protects you, but also other road users and vehicle owners that you may come into contact with. Car insurance policies generally cover 1) accidental damage to your car, 2) accidental damage to another vehicle that you may have hit, 3) specialist medical treatment associated with an accident and 4) legal protection. Due to the significant number of drivers in the UK who don not have appropriate car insurance cover, insurers are also now covering against non-insured drivers that may damage your vehicle in an accident.
The Cost of Car InsuranceThe cost of car insurance can vary greatly. Car insurance quotes are generally based on 1) your age, 2) your previous driving history, 3) the annual mileage that you intend to travel, 4) the value of your car, 5) where you intend to keep your car and 6) your current no claims discount percentage. The price of car insurance can be anywhere from £250.00 - £5,000.00 per annum, depending on the above. An 18 year old who has just passed their driving test, who buys a £5,000.00 Renault Megane 1.6L car, who intends doing 12,000 miles per year and who will be keeping the vehicle in a driveway with a fully comprehensive insurance policy can expect to pay about £2,800.00 per year (appox. £230.00 per month). Car Insurance Documentation There are several car insurance comparison websites that will provide a detailed quotation based on your own circumstances. The above cost is intended to provide an idea of what car insurance can cost the new driver. There are cheaper options such as third party, fire and theft cover in lieu of a fully comprehensive policy. This policy, based on the same parameters identified above, would reduce the insurance policy down to about £2,300 per annum in lieu of £2,800.00. Note that this type of policy would not cover accidental damage to your vehicle unless it caught fire or was stolen. That would mean that if you crashed your £5,000 car, you would not 1) recover the £5,000 to buy a new car if it was a write-off or 2) recover any money to pay for essential repairs. The only driver who would recover money for vehicle damage would be the driver that you hit (this is the third party coverage part of the policy). When you have successfully taken out car insurance, you will receive confirmatory documentation that outlines the type of policy you have chosen. The documentation that you normally receive is 1) a Certificate of Motor Insurance, 2) a schedule of cost information and 3) policy terms and conditions. These documents must be kept in a safe place. When you first apply for, or renew, your Car Tax, you must first present a valid Certifictate of Motor Insurance. No certificate - no car tax. There may also be occasions when you might need to present a copy of your Certificate of Motor Insurance to the Police, especially after a road traffic accident or after being caught for speeding or other road infringement. |
