Car Information Insurance in the U.K.
Motor insurance is a requirement in the U.K. At minimum, every driver must be insured for damage caused to other people and their property as a result of a car accident. There are several types of insurance policies and many different providers in the U.K. For a fee, these insurers will guarantee to insure you against accidents and other liabilities, depending on the coverage.
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Payments
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Personal circumstances and required coverage will determine the amount paid for car insurance; so, too, will the risk a driver represents. This risk is determined by the driver's age, gender, driving history, where he lives and typical annual mileage. The type of car a driver drives will also impact the insurance. Check the ABI's Motor Insurance Grouping Database, hosted by the Motor Insurance Repair Research Centre at Thatcham (see Resources).
Legal
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The Road Traffic Act insists that all motorists are insured. All drivers must be insured against liability for injuries to others---e.g., pedestrians, other drivers, your passengers---as well as damage to other people's property. A driver caught without insurance could face a maximum fine of £5,000, between six to eight points on his license and potential disqualification from driving. Police can also seize the vehicle.
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Types
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There are several different types of motor insurance, depending on the coverage required. Third-party coverage provides insurance for the driver if she's injured a third party or caused damage to a third party's property, but it doesn't cover the driver's own vehicle or property. This is the minimum coverage required by law. Third-party fire and theft coverage provides the above coverage but with the added protection of insuring for damages to the driver's car as a result of fire or theft. Comprehensive insurance covers against damage or injury to third parties and their property, but also insures the driver's car against damage from an accident. It may also insure against medical expenses and loss of personal belongings left in the car.
Documents
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When a driver insures his car, he'll be provided with a certificate of insurance. This is the evidence of insurance required by the Road Traffic Act. A further policy document sets out the terms and conditions of the insurance. A cover note may also be supplied, serving as a temporary certificate of insurance until the latter arrives.
Considerations
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A driver should read her policy carefully to ensure it gives her the right level of coverage. In particular, she should check that the maximum insured amount will cover any potential loss. The driver should also be aware of any policy limits or excesses (there may be more than one excess). An excess is the amount a driver is expected to pay out of pocket before the insurance kicks in. A driver should ensure that her policy also takes into account the way that she uses the car. If she uses the car for work, for instance, she should declare this. The driver also needs to check who else is allowed to drive the car on her insurance.
No-Claims Discount
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Drivers with a claim-free record can often benefit from a special no-claims discount. The discount will vary from one insurer to another, but it can range from 30 percent after one claim-free year to 60 percent after four or five years.
Shop Around
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A driver shouldn't settle for the first quote he receives. There are hundreds of companies offering insurance: Certain companies will offer special deals for niche groups, such as women or older drivers. Paying annually may also be cheaper than paying monthly; opting for a policy with a higher excess can also reduce the cost. A driver should ask for written details of all quotes so he can examine the small print. He can reduce the cost of his insurance by garaging his car and limiting the number of drivers.
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References
Resources
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