If you either own or drive a car in the UK, then, by law (Road Traffic Act), you are required to maintain a car insurance policy protecting you against claims for any liability to, or damage for, any injury you may cause to any third parties and/or any third party property. If you drive in the UK without the minimum level of car insurance, then you will have broken the law and stand the chance of being banned from driving in the UK for a period, a hefty fine, or even imprisonment.
Given the seriousness of what will possibly happen to you if you are caught driving in the UK without adequate motor insurance, you will need to know what the minimum car insurance you need is, and also what other major types of insurances are available:
Third Party Insurance
Third party insurance is the absolute minimum (at law) that you are required to have if you want to drive on the roads in the UK. This type of car insurance policy will protect you in the event that you cause any damage to:
any third party; or
any third party property; or
any passengers; or
any legal attachments to a car, such as a caravan or boat.It will not cover you for any damage to you or to your property, including your car. For this reason, third party insurance is usually the cheapest car insurance premium that you can purchase.
Third Party, Fire and Theft
The next step up in the car insurance ladder is third party, fire and theft. As you may imagine, third party, fire and theft car insurance will cover you for any third party injury or damage, any theft of your vehicle and any fire (that destroys or damages your car.
Although each car insurance policy differs, it is unlikely that any third party, fire and theft policy will insure you against any damage to you yourself or to your car following an accident. However, you will need to read the terms of the insurance policy carefully to see what circumstances and events you are insured for.
Fully Comprehensive Insurance
The highest form of car insurance you can have in the UK is known as “fully comprehensive” insurance. In effect, fully comprehensive insurance will cover you for most events concerning your car, including:
windscreen replacements;
stereo replacement (if stolen);
[possibly] new car replacement;
medical expenses, for you and anyone else hurt in the accident;
theft, fire and damage to your car, any damage done to any other persons car(s), and any third party property damage.
Again, as each car insurance policy will differ slightly, you do need to make sure you read the terms of the policy carefully before deciding on the best car insurance policy and insurer for your needs.