Car Insurance UK

By: EconomyWatch   Date: 26 May 2010

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Car insurance UK is useful because it covers damage to the insured car and the policyholder in case of an accident, fire or theft. The Road Traffic Act, 1998, requires every motorist in UK to insure his/her vehicle. In fact, driving about or parking an uninsured car on public property is not legally permissible.

A good thing to do is opt for the minimum insurance requirement level of insurance in UK, which is third party insurance. Third party insurance is a basic car insurance policy which offers minimal cover. It also satisfies the limit prescribed by the law. It may be noted that third party insurance provides no cover to the policyholder. Instead, it covers financial loss or damage incurred to another person because of the policyholder’s car.

Types of Car Insurance UK

Besides third party insurance, there are two more types of car insurance UK. These car insurance UK policies are detailed below:

Comprehensive Car Insurance UK: This policy offers several complimentary features in addition to basic insurance cover. Additional features in this cover include:

  • Alternative car facility in case the insured car breaks down or suffers an accident.
  • 24 hour breakdown assistance.
  • Insurance facilities covered throughout EU for a complimentary period of time.

Basic Comprehensive Car Insurance UK: This policy offers lesser cover compared to the comprehensive car insurance UK. It offers basic coverage at a reasonable price and within a shoestring budget.

The policy cover includes:

  • Accidental damage.
  • Financial loss against fire or theft.
  • Reimbursement for repairing cost.

It may be noted that both these plans also cover third-party insurance benefits. At an extra cost, UK insurance companies are bound to offer additional facilities such as towing coverage and medical reimbursement.

‘Pay As You Drive’ Car Insurance UK

In this policy, the premium is customized in such detail that a mini GPS device is installed in the insured car to calculate the premium.

The following elements are then taken into account:

  • hours of drive each day
  • type of roads on which the car is driven
  • mileage
  • the driver’s driving habits

To get the best deal from car insurance UK companies, do a thorough research before buying a car insurance UK.


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