What types of motor insurance policy are available?

Everyone, as a very minimum, needs to have motor insurance policy, at the very least to cover someone against damage or injury to themselves or their property should they be a third party to an accident which is your responsibility as the user of a vehicle. This has been law since 1930.

Your insurer also has to ensure that anyone ensured by them possesses a motor insurance certificate which is up to date.

However, this third party motor insurance is only a starting point for cover. There are more extensive cover options for you to learn about. This is so you can cover the financial investment that you made, as well as covering any damage caused to other people.

There are four basic cover types in Britain today. The absolute minimum policy is called 'Act Only', and is so rare that it's hardly worth covering in great detail. This covers only third party risks on any public roads. The only time motorists may be happy to rely on them is if they were completely unable to obtain other forms of cover, maybe because of a poor driving record.

Third party insurance is the next step up, and it aims to cover the person insured when they are driving on private as well as public property and roads. Legal liabilities are protected against, in addition to third party claims. Passenger indemnity is an example of the legal liabilities covered. So, if you are using a motor vehicle, and one of your passengers happens to open your car's door and knocks over a cyclist, you are covered. You're also covered for legal costs when you take out third party insurance.

The next step up is third party fire and theft. This takes third party insurance protection, then adds damage or loss to the insured's motor vehicle that is caused by an attempted theft, or an actual theft, or a fire. When you have an older car, which is not of so much value that they should be covered for every possible risk, this is a cheaper alternative to comprehensive cover.

You can't protect yourself for every risk, but should you wish to protect against as many as possible then comprehensive cover is for you. This is the widest cover you can get, and adds accidental damage cover to the 3 policies above.

Should policyholders' vehicles be damaged, they can get their vehicle repaired, even if it is not due to theft or fire. You can also include personal accident insurance in this, where you can get payments should you suffer certain injuries like a loss of sight or a limb or maybe death. Should people sustain an injury in your motor vehicle, you can also get some medical cover.

 

 

 

 

 

 

 

 

 

 

 

 

 

© AskFinancially.com 2008

Motor Insurance

Ask About

> Motor Insurance Advice.....
> What are the laws regarding motor insurance in the United Kingdom?
> What are the principles behind motor insurance?
> What types of motor insurance policy are available?
> What is third party only insurance?
> What is third party fire and theft motor insurance?
> What does a comprehensive motor insurance policy cover?
> What is excluded from comprehensive insurance policies?
> How do I claim?
> What to do if you have an accident?
> How do I claim if an accident causes damage to my car?
> How do I claim if the accident involves a third party?
> What do I need to do if using my motor vehicle abroad?
> How do I find the cheapest motor insurance premiums?
> How can I lower my motor insurance premiums?
> How are my insurance premiums affected by convictions, drink driving etc?
> Why do some motor insurance specialise in just young drivers?
> Why do some motor insurers specialise in just lady drivers?
> Why do some insurers specialise in higher performance motors?
> What are the road tax rates by specific type of vehicle?
> Who should I contact should I wish to report a problem with an insurance company?
> Who do I contact if I have a complaint against a finance house?
> Who should I contact should I feel I have been a victim of misleading advertising?
> Are motor insurance laws different in Ireland?
> Are motor insurance laws different in Scotland?
> Are motor insurance laws different in Northern Ireland?
> Are motor insurance laws different in Wales?