As a first-time car owner, Britain’s car insurance network can seem strange and treacherous to navigate, with an overwhelming amount of choice. The good news is that due to the high volume of options, it is certain that you will always be able to find the insurance that is perfect for you. Before you pay for insurance it is essential that you know how well you want the vehicle insured, how long for, and for what purpose.
The three types of insurance
In answering the most common questions around car insurance, we start by answering the question “what are the essential car insurance options”? In Britain, it is a legal requirement that all vehicles being used on the road must be insured. There are three basic types of insurance: third party, third party, fire and theft, and comprehensive. Third party insurance is the legal minimum requirement and covers you for damage done by other drivers to your vehicle, while third party, fire and theft adds insurance against fire and theft, as other factors beyond your control. Comprehensive coverage is the most expensive but also the most useful form of insurance as it covers every part of your car and also, with the owner’s permission, can allow you to drive other people’s vehicles. It is up to you which of these policies you choose, but at the very least you do have to have third party insurance.
What if I don’t have insurance?
Driving uninsured is a crime in the UK, and results in a fixed fine of £100, a possible penalty of up to £1000, and a chance your vehicle will be clamped and towed. If a vehicle is going to be out of use for a long period of time you can apply for SORN, a Statutory Off-Road Notification, which will let the DVLA know that the vehicle is no longer on the road. However, when you then resume use of the car it is essential that you update the DVLA again, as Britain has Continuous Insurance Enforcement, meaning that your insurance must always be valid for what you require at that moment.
Multi-car insurance
If you are a car owner in a multiple car household, it can make more sense to invest in a joint insurance policy which covers all vehicles in the household under one joint account. This can save individual drivers money, and also allows all members of the household to be insured on all cars. So, in a household with two working parents and two cars this can provide the needed flexibility to meet all the demands of family and working life.
How do I save money on my insurance?
Driving fewer miles reduces wear and tear on the car and also the risk of accidents, and so a car which is driven less can often have a lower premium. If you drive safely and avoid getting points on your licence or using your no-claims discount, this will also have a positive effect, as will being able to prove that your car is kept somewhere secure overnight and when otherwise parked.
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