Car Insurance: FAQs

Q. Do I need car insurance?

A. Yes. It is a serious criminal offence for you to drive or to allow others to drive your car without insurance. Doing so is illegal and may lead to imprisonment, especially if you or another person are involved in an accident. The UK Road Traffic Act legally binds all motorists to take out insurance to cover themselves for the liability against injuries to other drivers, passengers and any damage caused to another person's property. The minimal legal requirement in the UK is third party insurance, which insures against loss and injury toward others.

Q. What are the main types of car insurance?

A. The three main types of car/motor insurance are:
Third Party Only, which protects an individual against liability if they injure a third party or if damage is caused to a third party's property. It is very important to be aware that Third Party Only does not cover the driver for damage, loss, or theft to their car/property.
Third Party Fire and Theft is the same as Third Party Only, except it offers additional cover for the theft of your own vehicle, as well as fire damage.
Fully Comprehensive coverage offers protection for accidental damage, fire and theft as well as liability towards a third party's property. Most importantly, Fully Comprehensive insurance can pay for damage to the driver's vehicle and property no matter whose fault the accident was.
Even if you're considering one of the Third Party options, it's always worth getting a quote for Comprehensive insurance as well - surprisingly, some insurers offer a similar price for both, or the Fully Comp may even be cheaper.

Q. Which policy should I choose?

A. The best way to choose which policy is best for you is to assess your budget, amount of miles you drive each year, distances you regularly travel, and the value of your vehicle. You can then make a decision about the kind of insurance you need, and the cover you want. Remember, the more coverage you have, the higher your premium is likely to be.

Q. Does age matter?

A. If you are an older driver with a clean record, you'll likely find that a Fully Comprehensive policy becomes more affordable as the years goes by. Younger drivers are considered inexperienced, meaning that their insurance will naturally be higher along with the risk of an accident.

Q. What is a No Claims Discount (NCD)?

A. A No Claims Discount (or No Claims Bonus), is a traditional way of keeping your car insurance premium low by proving how long it has been since you last made a claim on a car insurance policy. For example, if you've been driving for 5 years and have never needed to make a claim, you will have a 5 year NCD. A history of zero claims means that you are a low risk on the road, and an insurer is happy to reduce the cost of your policy. The discount will vary depending on the amount of years you have been driving and the insurer you choose, but some can offer up to 60% off if you've never made a claim. Some insurers also offer 'protection' for your No Claims Discount; this means that for a small fee, they will allow a limited number of claims to be paid before your NCD is affected.

Break down this article

We've highlighted some important points, click to jump to any of these sections.

Other car insurance articles which you may be interested in...

Sports Car Insurance Sports Car Insurance - Sports car insurance, similar to standard car insurance, offers specialised coverage tailored for high-performance vehicles. As a result, insuring a sports car typically incurs higher premiums.
Imported Car Insurance Imported Car Insurance - In recent years, having a car imported to the UK has become increasingly popular. Lower prices and higher specs mean that vehicle buyers are leaning towards more expensive import cars.
Car Insurance for Women Car Insurance for Women - Female drivers tend to have lower insurance premiums than men, due to multiple reasons. Find out more here.