Motor insurance is a legal requirement, but this does not mean that you should get the cheapest coverage available. There are many types of motor insurance and the right one will provide you with significant protection, in the case of an accident. Or if you view your car as an investment, motor insurance will protect your investment against theft or accidents.
Since the 1930s, car owners in the UK are required by law to at a minimum have a insurance policy that will cover injury to a third party or damage to a third party property. In the UK there are three basic types of motor insurance coverage: Act only, third party and comprehensive cover.
The Act only coverage is the bare minimum coverage you are required to have for your vehicle. It is not advisable for car owners to only have the Act only cover, but if for some reason you are not eligible for insurance cover, this may be the only coverage you can obtain. However, it is important to keep in mind that Act only cover does not insure you against accidents on private roads or private property.
Third party coverage is basically the first level of insurance and covers your liability to others. For example, if you cause an accident, the insurance will cover the damage to the vehicle and injury to the driver of the other vehicle, but not your injuries or damage to your car.
Comprehensive cover, as the name suggests covers you and your vehicle for a whole range of possible events. There are of course exclusions and it is important to read the fine print of any comprehensive motor insurance coverage, so you know exactly what you are insured for and for how much. Many comprehensive covers also include windscreen replacements.
However, insurance companies now offer other additions to the various motor insurance coverages. For instance, you can get third party cover with fire and theft cover. This means that you are covered if your vehicle is broken into or is damaged by fire. There are also specialised coverages for women drivers, drivers who only drive on weekends, drivers with low annual mileage and even vintage cars.