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Auto Insurance in UK

Auto Insurance also known as Motor Insurance, protects you against a contingency or a road accident that leads to damage to your car. It saves you from a financial loss that you might face.  It is essential to own an auto insurance if you own a vehicle. It is the first step that you should take post purchase of your vehicle.

It is vital to know about the various laws, rules and regulations in UK related to Car driving. The important point here is that Motor Insurance is compulsory and not having a motor insurance if you own a vehicle is considered as an offense in UK. Auto insurance not only covers the expenses of your car but also medical expenses involved for yourself incase of an accident. It could also cover the other motorist’s liability in case of an accident. The benefits or extent of reimbursement mainly depends on the type of motor insurance chosen by you.

There are mainly 3 types of auto insurance available in UK,

1. 3rd party only Insurance
2. 3rd party car and theft Insurance
3. Comprehensive Insurance.

1. Third Party Only Insurance: Owning this insurance is the minimal requirement as per UK law’s amongst the auto insurances offered in the market. It covers damage to others involved in the accident. This includes passengers, other party in the accident and damage if any caused to someone else’s property in the accident. Hence, like the name suggests it covers all third party damages, however doesn’t cover the cost incurred by the owner of the motor vehicle due to the accident.
2. However there are some additional benefits provided by many companies in the market. Hence the exact benefit differs from company to company. While choosing the right auto insurance product, it is critical to understand the benefit and cover provided by the company.

2. 3rd party car and theft Insurance: This insurance type provides all the benefits mentioned above, however here the coverage of loss is in case of damage to your vehicle caused by Fire. It also covers loss against the car being stolen. While 3rd party only insurance provides security for accidents to 3rd parties, this insurance provides security against loss due to theft and fire.

3. Comprehensive Insurance: Again, like the name suggests this is an all inclusive insurance that covers both loss against accident as well theft and fire. Having this insurance is of utmost importance if your car value of very high. Apart from covering these 3 contingencies, different insurance companies also provide various other benefits depending upon the premium you choose to pay.

Cost of buying these auto insurances differ from company to company. The premium depends upon the type of insurance, the additional services, your gender, age, marital status, type of vehicle, your past driving record, complaints if any registered in the past, Duration of usage of your vehicle, Life of usage and the state where you stay.