Car Insurance

Anyone who drives is almost certain to have at least a passing acquaintance with car insurance – after all, a minimum level of cover is required by law.

Nevertheless, it might be helpful once in a while to review the key features of this, one of the most common forms of general insurance – especially when the Association of British Insurers (ABI) reports that the cost of premiums have been falling since 2012.

To ensure that you are keeping abreast of the latest developments in motor insurance – and securing value for money in the policy you choose, you might want to use the services of a broker such as ourselves here at Specialist 4:

What is car insurance?

if you drive a vehicle on the roads or in any other public space, you are legally obliged to hold at least third party insurance;
the reason is the straight forward one of allowing you to meet any claim for personal injury or property damage from a third party suffering such loss as a result of your driving;
in addition to this bare minimum of cover, however, car insurance may give you considerably greater protection;

What does it typically cover?

the problem with restricting your car insurance only to third party claims is that this level of cover offers no protection for your own vehicle – if it is damaged you need to pay for any repairs yourself;
a limited amount of such protection is afforded by third party, fire and theft insurance – which just as the term suggests, adds cover in the event of your vehicle being stolen or catching fire;
many motorists, however, opt for the security of comprehensive cover, which gives you compensation for the cost of repairs even when the damage is accidental and caused entirely by your own actions;
as with many other forms of general insurance, car insurance policies typically include a compulsory excess – the first part of any claim which you agree to pay from your own pocket – and may also offer you the option of accepting a further voluntary excess in return for lower insurance premiums, since you are then effectively sharing a greater part of the risks;

Who is car insurance suitable for?

car insurance is not only suitable for, but is also legally required by, anyone who drives a motor vehicle on the roads or in any other public space;
the level of protection you choose – third party, third party, fire and theft, or comprehensive insurance – is likely to depend on the value of the vehicle you are ensuring and the cost of replacing it in the event of its total loss;
paradoxical as it may seem, the level of insurance that gives you the greatest protection – comprehensive cover – might often be the most cost-effective, suggests the government sponsored Money Advice Service;
car insurance also favours the careful driver who avoids the necessity for making any claims on his or her motor policy – valuable no claims discounts of up to 65% may be available.

Summary

Although a basic level of motor insurance is a legal requirement, no one size fits all when it comes to arranging the cover you are likely to need. The kind of choices you are likely to make may be best guided by a specialist broker in this highly competitive and constantly developing field of insurance.