What is car insurance?
We all need auto insurance for road driving, but finding the right type of coverage can be difficult. This guide aims to provide a better understanding of how auto insurance works and help you make a more informed choice when choosing the right coverage.
How to choose car insurance
We all need auto insurance for road driving, but finding the right type of coverage can be difficult. This guide aims to provide a better understanding of the basics and help you make a more informed choice when choosing a policy.
How does auto insurance work?
Auto insurance pays out if your car is stolen, damaged, caught on fire, or if you are involved in an accident. At a minimum, this insurance protects you against damage you cause to other road users, the public, or their property - so-called third parties.
You only need to file a claim on your policy when the accident is your fault. If another driver is at fault, their insurance will have to pay. Find more information in our how to file a claim guide.
Do I need car insurance?
Yes. Driving on UK roads without insurance is illegal.
If you drive without car insurance, you could be fined up to £1,000 or have your car confiscated and destroyed. The GOV.UK website has more details on the penalties you may face.
The only time it is not necessary to insure your car is if you officially certify that the car has not been used through an official off road notification (SORN). However, the vehicle must remain on private land, not on a public road.
GOV.UK website - Drivers are not insured
What does car insurance cover?
Auto insurance protects you against financial loss, but the level of protection depends on the type of policy you choose.
If you cause an accident, your insurance company will cover the costs. All you have to pay for is the excess - a fee set by the insurance company - plus any voluntary excess, which is an additional amount set by you. If you file a claim, your premium will likely increase.
Auto insurance coverage is available in various levels, and the level you choose will determine how much your insurance company will cover.
What types of car insurance are there?
There are three levels of auto insurance coverage:
Comprehensive insurance
Sometimes called "fully comprehensive" or "fully comp" for short.
Key Features: Protects you, your car, passengers and prop
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