Apart from being a necessary piece of legal requirement, a good car insurance policy provides the owner with the right cover, as well as financial protection in an instance of a car accident. Other people involved in the accident such as drivers, passengers, pedestrians or properties are also covered by car insurance.
We don’t leave in a perfect world; therefore accidents are inevitable, it is a somewhat a relief that we are financially covered during any vehicular mishap.
What makes car insurance necessary?
As earlier explained, when you have car insurance, you are financially covered when your car is involved in any form of accident that caused damages to your vehicle or injuries to you or other passengers as well as pedestrians and properties.
According to the United States Road Traffic Act of 1988, it is compulsory for all motorists to be insured. This is to ensure that they are liable to other users of the road in case of mishaps. Another significant advantage of car insurance is to aid the owner financially when the car is stolen, destroyed by fire or vandalized.
Although there is an exception to getting your car insured, it is advisable to get one as a frequent road user. If a vehicle is declared as an off the road by possessing a Statutory off the Road Notification from the DVLA, then it is not necessary to insure such a car.
The dangers of not insuring your car
Every car owner must note that it is illegal not to possess car insurance — the penalties for not having one range from fines of different level and being disqualified from driving. As an offender, your maximum fine is unlimited. There are also instances where your license can carry six to eight points if you are caught for driving an uninsured car.
While the Government is currently reviewing the penalties for offenders that kills or are involved in accidents, one must be careful in driving a car that is not insured. Also, vehicles with no insurance covers can be seized indefinitely by the Police and those impounded destroyed.
Types of car insurance
The variety of your car insurance options solely depends on the level of cover you desire. Some popular types that are available are:
Third party: Although the barest minimum car insurance required by law, it is not necessarily the cheapest option. This type of coverage has varieties as it can cover injuries to others as well as properties involved in the accident.
Third party, fire, and theft: While this type of insurance is similar to third party car insurance, it also covers the cost of damages when a car is stolen or destroyed by fire. The insurance company pays for replacement when there is any of the mishap (fire or theft).
Comprehensive: As the name implies, it is the highest form of car insurance one can get. This covers all the damages when your car is involved in an accident (both property and people involved). Additionally, this form of insurance can include legal expenses or courtesy car insurance.
Although you might insure other users of your car, it is advisable that the primary person that uses the car the most is the one insured.
How to know the cost of your car insurance
Various factors determine the value of car insurance. Some of them are the age of the insurer, type of car, where the insurer lives, occupation and if there has been a previous conviction against the insurer.
When you pay a higher excess, this can lower your premium and make you get a higher claim. Unlike adults, young folks face higher premiums due to the higher risk of accidents they carry. Always research thoroughly when looking to insure; and ensure that the Financial Conduct Authority certifies your insurance company.