The year 2019 saw almost 35 million cars being used in the UK. This means that there are almost 35 million
The number of cars in the UK has been growing steadily in the last few years. In the year 2019, the number of cars in the UK surpassed 40 million in the year 2019.
About Car Insurance
Car insurance is known by different names across the UK—vehicle insurance, auto insurance, or motor insurance.
Car insurance is a legal requirement in the UK. If you own a car in the UK, you are legally required to have a car insurance policy.
Car insurance provides car owners with a safety net that provides you financial protection from damages occurring to your car. It provides you reimbursement of damages occurring if your car is involved in a crash, is stolen, or catches fire.
Car insurance also protects you against third party liability if damage happens to other persons, their property, or public property. Some types of car insurance also provide breakdown assistance, medical expenses, and coverage for personal valuables.
Different types of car insurance
White Recovery offers different types of car insurance plans to meet the diverse requirements of car owners.
According to the Government of the UK, third party car insurance is the legal minimum insurance needed by motorists in the UK.
The insurance cover of this plan is limited to providing you protection against damage to a third person’s car or property. It also covers you in case of injury to the third person, animals, as well as your co-passengers. This insurance plan also provides coverage for damage to public property like public vehicles, walls, and lamp posts.
However, it doesn’t provide coverage for damage to your car.
Third-Party, Fire, And Theft (TPFT) Insurance
The third-party, fire, and theft car (TPFT) insurance as the name suggests provides financial protection against damage to your car due to fire or theft. It also provides you with third party insurance.
A comprehensive insurance plan offers protection against a wide range of damages to your car. A basic comprehensive car insurance plan provides coverage for:
- Damage to a third party—private as well as public
- Damage due to fire and theft
- Damage due to accidents
- Damage from vandalism, civil unrest, strikes, or rioting
- Damage from falling objects
An all-inclusive comprehensive car insurance plan provides add-on benefits like:
- Windscreen repair or replacement
- Damage due to natural disasters like earthquake, flooding, and hurricanes
- Personal accident cover
- Damage to the car due to animal impact
- Repair or replacement of car in case of theft or damage
- Courtesy car for onward travel in case of an emergency
- Overnight accommodation facilities
- Coverage for personal belongings like car-stereo, a navigation system, car-seats
- Reimbursement for loss or theft of car keys
- Coverage for legal expenses.
A multi-car insurance plan is specially designed for couples, families, or persons who own more than one car. Instead of having multiple car insurance policies for each car, you may opt for a single multi-car policy that provides coverage for all your vehicles. It saves you the hassle of remembering different renewal dates. A multi-car insurance is often more economical than buying individual car insurance plans.
Getting a quote for car insurance
Car owners need to submit the following information and documents to obtain a quote for car insurance:
- Personal Details: Car owners need to provide personal information like—full name, age, profession, address, previous history records—motoring convictions, previous claims, No Claim Bonus history
- Driver’s Licence: Licence number, number of years with driving experience
- Vehicle-related information: Registration number or vehicle identification number, age of the vehicle, model and make of the vehicle, location of overnight parking, estimated yearly mileage, and safety equipment installed in the car to name a few.
Factors Affecting Car Insurance Premium
Like all other insurance premiums, a car insurance premium is decided based on the assessment of several risk factors. Your car insurance is decided based on the following factors:
- Driver’s Age: By thumb rule, drivers falling between 17 years and 25 years are charged higher insurance premium than driver’s with more age and car driving experience
- Driver’s Profession: If your profession involves frequent long-distance travel or working in high-risk activities, you may be charged a higher car insurance premium
- Drivers Personal Details: Sometimes male drivers may pay more insurance premiums than their female counterparts. Also, married drivers are charged a lesser premium as compared to unmarried people
- Driving History: If you have had a negative driving history record like—speeding tickets, parking tickets, collisions, or a previous claims history, you should be prepared to pay the extra penny for your car insurance premium.
- Location: Your address plays an important role in determining the risk to your car. If you are living in an area prone to high crime rates like vandalism or theft you may have to pay extra for your insurance premium. Similarly, if your home address is closer to an area with a history of frequent flooding, landslide, or other natural disasters, you may be charged a higher insurance premium
- Type of car: Expensive cars, cars with higher speeding capabilities, sports cars, modified cars, and vintage or classic cars are charged higher premiums. Older cars as well as large-sized cars like SUVs and station-wagons are also charged higher insurance costs.
According to the Association of British Insurers (ABI), the average annual cost of comprehensive car insurance in the UK is about £460. By spending a little more than a pound a day, car owners in the UK can buy complete insurance coverage for their car and peace of mind to have one less thing to worry about.
As the Big Ben clock strikes midnight on 31st December 2020, the UK’s official transition period for Brexit shall come to an end. British motorists driving into Europe will need more documents than just their passport and driving license. Our team of experts recommends that UK drivers should carry the following documents with them while driving their vehicles to Europe:
- IDP: International Driving Permit with permission to drive through all countries you are planning to drive in
- Green Card: It is an International Motor Insurance Certificate (IMIC) which is issued by UK insurers. Basically, the Green Card provides a guarantee that you possess the necessary minimum third party insurance or motor insurance cover for driving in the country you are traveling
- Log Book or V5C
- GB (Great Britain) sticker on car wind-shield.
Car Insurance – FAQ’s
1. I live in the United States. But I own a car in the UK. Do I need car insurance?
Yes, you still need to buy car insurance. It is illegal to drive your car on UK roads without car insurance. If you are not using your car, you need to officially register it as “off-the-road” to be exempt from motor insurance.
2. What happens if I don’t have car insurance?
It is illegal to drive a car without car insurance in the UK. There is a high penalty for driving a vehicle without vehicle insurance. Penalties may include a fine of up to £5000 and six penalty points on your license. In some cases that end up in court, the driver may be disqualified from driving and the vehicle may be confiscated.
3. What is excess?
An excess is an amount that you shall have to pay for claiming your car insurance policy. For example, if you have an excess worth £50 and a claim worth £750, you shall be paid only £70 from the insurance company.
4. What is a No Claims bonus?
A no-claims bonus is a discount on the car insurance that you earn in case if you have not made any claims for a long duration. Simply said, a no-claims bonus reduces the cost of your insurance premium.