Car

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In 1930, the UK government introduced a law that required every person who used a vehicle on the road to have at least third party personal injury insurance. Today, UK law is defined by the Road Traffic Act 1988, which was last modified in 1991.

It is an offense to use a car, or allow others to use it, without the insurance that fulfils the act whilst on the public highway. Beyond this, you have a choice between cover which only provides financial protection against physical damage, bodily injury and liabilities resulting from traffic collisions or other financial protections.

• Types of Cover
  • Third party only – the minimum level of insurance cover available to satisfy the requirements of the Act, it covers liability to third parties but no other risks
  • Third party, fire and theft – more commonly purchased, this covers all third party liabilities and also covers the vehicle owner against theft or destruction by fire
  • Comprehensive insurance – this covers all of the above and damage to the vehicle caused by the driver themselves, as well as vandalism and other risks
• Excess

  An excess payment, also known as a deductible, is a fixed contribution that must be paid each time a car is repaired with the charges billed to an automotive insurance policy.

  If the accident was the other driver’s fault, and this fault is accepted by the third party’s insurer, then the vehicle owner may be able to reclaim the excess payment from the other person’s insurance company.

  • Compulsory excess – This is the minimum payment the insurer will accept on the insurance policy. The amount will vary according to your personal details such as age and driving record
  • Voluntary excess – To reduce your insurance premium, you may offer to pay a higher excess than the insurance company demands