What is car insurance?
Car insurance is a type of insurance that provides financial protection against physical damage, theft, and liability caused by a car accident. It is a legal requirement for all drivers in the UK to have car insurance to protect themselves and others in the event of an accident.
How does car insurance work?
Car insurance works by transferring the risk of financial loss from the driver to the insurance company. The driver pays a monthly or annual premium to the insurance company, and in return, the insurance company agrees to cover the cost of any damage or liability resulting from an accident.
READ: Car insurance guides
Who needs car insurance?
Anyone who owns or operates a motor vehicle in the UK is legally required to have car insurance. This includes cars, motorcycles, and commercial vehicles.
What types of car insurance policies are there?
There are three main types of car insurance policies:
- Third-party-only insurance – Covers damages caused to other people and their property.
- Third-party, fire and theft insurance – Covers damages caused to other people and their property, as well as fire and theft of the insured vehicle.
- Comprehensive insurance – Covers damages caused to other people and their property, fire, theft, and damages to the insured vehicle.
How much does car insurance cost?
The cost of car insurance depends on several factors, including the driver’s age, driving history, the type of car, and the level of coverage. On average, car insurance costs around £470 per year in the UK according to the ABI.
How can I compare car insurance quotes?
You can compare car insurance quotes online using comparison sites like Comparoo. All you need to do is enter your details and the details of your car, and you will be presented with quotes from various insurance providers. You can then choose the policy that best fits your needs and budget.
How can I pay for my car insurance?
You can pay for your car insurance using a credit or debit card, direct debit, or bank transfer. Some insurance providers also offer the option to pay in installments.
How often do I need to buy car insurance?
Car insurance policies typically last for one year. You will need to renew your policy annually to ensure that you remain legally covered while driving.
What are car insurance add-ons?
Car insurance add-ons are optional extras that can be added to your policy for an additional cost. Some common add-ons include breakdown cover, legal expenses cover, and courtesy car cover.
Car insurance FAQs
Can I drive without car insurance?
No, it is illegal to drive without car insurance in the UK.
How much does car insurance increase after an accident?
The amount that car insurance increases after an accident depends on the severity of the accident and the driver’s previous claims history.
Can I cancel my car insurance policy?
Yes, you can cancel your car insurance policy at any time, but there may be cancellation fees and charges.
Will my car insurance cover me if I drive abroad?
Some car insurance policies offer cover for driving abroad, but it is best to check with your insurance provider.
What is a no-claims discount?
A no-claims discount is a discount on your car insurance premium for each year that you do not make a claim.
Can I add a named driver to my car insurance policy?
Yes, you can add a named driver to your car insurance policy for an additional cost.
What is the excess on a car insurance policy?
The excess is the amount that the policyholder is required to pay towards the cost of a claim.
How can I lower my car insurance premium?
You can lower your car insurance premium by increasing your excess, choosing a lower level of coverage, and by building up a no-claims discount.
What is black box insurance?
Black box insurance uses telematics technology to track a driver’s behaviour on the road, such as speed, braking, and acceleration. Based on this data, the insurance provider can offer a personalised premium based on the driver’s individual driving habits.
What is multi-car insurance?
Multi-car insurance is a policy that covers two or more cars in the same household under one policy. This can often be cheaper than insuring each car separately.
