We’ve spoken previously about home insurance, looking at the difference between buildings and contents insurance policies. Now, we turn our intention to motor insurance. As with previous explanatory articles, the discussion here centres upon the situation in the UK.
The reason why we’ve chosen to specifically examine UK car insurance issues is because these are familiar to us. Some of the information contained within this section of the website may apply to other countries too, but you should certainly check that out first before deciding to rely upon it.
So where do we start with car insurance? This is a tricky subject in many respects, since it’s an area that a lot of people have strong opinions about. In fact, it seems to be one area of personal finance that often draws more interest than any other.
Maybe that’s a reflection of the fact that many of us are still very much seen as being inseparable from the motor car. As hard as we might try, we’re usually left realising that we still rely on these vehicles to a far greater extent than we might be comfortable with.
The legal situation
We can start by looking at the legal situation here in the UK, which is actually incredibly straightforward. If you’re intending on driving a car on the public highway then you simply must be insured. There’s no room for negotiation on that and there are extremely stiff penalties in place for those driving without insurance. There are different levels of insurance available in the UK. Let’s take a look at each of them in turn – we’ll start with the cheapest and work our way up in terms of cost.
Want to know what factors are important when it comes to choosing car insurance? Our complete set of articles can point you in the right direction:
Car insurance explained
Third party insurance
Third party fire and theft
Fully comprehensive cover
Comparing car insurance deals
The cost of car insurance
Car insurance costs: your car
Car insurance excess levels