UK vehicle insurance covers property damage and bodily injury to a third party as well as damage to the policyholder in case of an auto accident.
UK Vehicle Insurance Laws
The Road Traffic Act, 1988, regulates policies and procedures pertaining to vehicle insurance in the UK. It requires every motorist either to buy third-party insurance or deposit a specified amount with the Accountant General of the Supreme Court. The deposited amount acts as security against liabilities for damage to another person in an auto accident. In the UK, it is an offense to drive or let others drive an uninsured vehicle in public places.
Insurance companies issue certificates or cover notes as evidence of insurance. The Road Traffic Act also states that the transport authority can ask the driver to produce the insurance certificate for inspection.
The Motor Insurers Bureau maintains a national database for all insured vehicles in the UK.
Types of UK Vehicle Insurance
Apart from the mandatory third party insurance, UK vehicle insurance companies offer two more types of coverage:
A third party, fire and theft insurance policy pays for damage to the insured vehicle in case of fire or theft, along with the benefits of third party insurance.
Comprehensive insurance offers wider coverage. Besides basic insurance, it also covers bodily injury to the policyholder and damage to the insured vehicle caused by an auto accident.
UK vehicle insurance companies also offer a range of secondary covers to meet specialized needs of the policyholder.
Factors That Affect UK Vehicle Insurance
Several factors come into play when an insurance company estimates the policy price for an individual. The factors that affect UK vehicle insurance are:
Sex and age of the policyholder
Occupation
Number of drivers covered under the policy
Location
Driving history
Annual mileage
Make and model of the car
Engine performance
Benefits included in the policy, such as roadside assistance, courtesy car and breakdown insurance
Compulsory and voluntary excess amount that the individual agrees to pay before the insurance policy begins to pay off for the claim.
Vehicle security
Modifications to the vehicle