Car Insurance UK
Insurance is one of the most widely used terms now a day. Due to different circumstances, people consider it as a necessary part of their lives. Moreover, our traffic system implies to have this policy. It is actually an agreement in which the insurance company becomes responsible of paying any kind of loss to your car in return for a little amount paid by you in the form of premium. It makes you secure and tension free. This concept is, now a day, common across the world. All the people use this policy while buying a new car. This insurance provides you the security for your property, liability, and also medical coverage. While driving a car in United Kingdom, it is necessary for you to have an insurance to cover any kind of injury to any person, animal, and vehicle. In UK it is a must to have car insurance. Failing it can cause a fine of £5,000.
Types of Car Insurance
There are different types of car insurance. These are named after the coverage they provide and these are:
- Third Party Car Insurance
- Third Party, Fire and Theft
- Comprehensive Car Insurance
1-Third Party Car Insurance
It is the most basic type of car insurance policy being used now a day. It is the policy which is imposed by law on any person who wants to drive in UK. It is less costly and also provides the basic coverage. It provides coverage to third party only if an accident takes place. It means it does not cover the driver and his vehicle. Instead, it covers the property and life or injuries caused to a person due to your mistake. Here the driver who causes the accident is not covered. He has to bear all the expenditures by himself either on his car or on his injuries. For this reason, third party car insurance is considered more suitable for the person who is going to drive an old car. While for new cars users, the policy should not be just third party. It should be comprehensive to cover the damage of your new car. In recent years, more and more young drivers have used this policy to minimize the costs.
2-Third Party, Fire and Theft
It is the second type of cover which is more beneficial than third party cover. In this type of policy, you are provided all types of covers as provided by third party insurance but with some addition. It provides cover against all types of damages caused by fire and also covers the damage in the form of loss of vehicle. It is also suitable for old cars drivers. But if you are a new car owner, try to go for comprehensive car insurance. This is somewhat more costly than the basic insurance. The research is a must before going to opt for this policy.
3-Comprehensive Car Insurance
The third and the most important of car insurance policies is comprehensive car insurance policy. It also includes the covers provided by third party insurance and fire and theft covers. It is the type of insurance which provides cover against any kind of loss or damage to your own or someone other’s vehicle as a result of accident caused by you. These comprehensive policies may also be different with respect to their provider. It is advisory to make a thorough research before going for any policy and decide y keeping in view the different types of covers provided by the policy.
There is also another type of policy that covers the losses of only breakdown cars and is also known as breakdown car insurance policy.
Benefits of Car Insurance Policies
There are many benefits of car insurance policies. These are:
- Financial Protection
- Physical Damage Protection
The very first benefit of car insurance policies is their financial benefits. You have to pay a little amount in the form of premiums and in return are given coverage from any kind of damage whether costing low or high. These policies cover your medical bills, damage or loss of your car, and even cover the damages or injuries of the third person as a result of accident caused by you. Here, it is to note that in order to have full benefits one must go for comprehensive policy.
2-Physical Damage Protection
The second advantage of taking a car insurance policy is that it pays for the repair of your car damaged as a result of an accident. There are some special policies that only cover the accidental or breakdown damages. But, the best is the comprehensive policy that covers all kinds of damages.
In conclusion, we can say that car insurance policies are must to drive a car in UK. We realize their importance only when we are in trouble. These policies save us from civil suits and all kinds of financial losses.