Why do you need car insurance?

A car driving down a lonely road

Let’s not beat around the bush, car insurance can be expensive and along with the other costs of owning and maintaining a car, sometimes we can look at our monthly insurance cost and wonder why on earth we need it when hopefully we will never have to actually claim against it. 

Everyone having car insurance brings you all peace of mind knowing that you are covered financially in case of an accident or intentional damage to your vehicle.

The law

Legally you have needed to have car insurance since the Road Traffic Act 1930 came into effect. All drivers must have at least Third Party cover.

If you are caught driving without some level of insurance you could face a fixed penalty of £300 and six points on your licence – (If this is in your first two years of driving this would mean that you would lose your licence.) If your case then proceeds to Court you could face an unlimited fine, your licence being suspended and in some cases you vehicle could be seized and even destroyed. 

So apart from it being law, why do we need car insurance? Having insurance gives you the peace of mind that if you are involved in an accident you will get financial help towards paying for the damages and even medical costs that are involved. Exactly what you are covered for will depend on your level of insurance

Third party insurance

This is the minimum level of cover that you must have to drive a car in the UK. 

This covers other drivers for damage to their car and injuries they may sustain. 

It also covers any passengers that are in your car. 

It does not cover any damage to your own car. 

Third party fire & theft 

This gives you the same cover as third party but with the added protection of fire damage and theft to your own car. 

Damages to your car in an accident are still not covered. 

Fully Comprehensive

This is the highest level of car insurance that you can obtain and covers both yourself, your car and any other cars involved in an accident. 

Extras are not always included but many insurers will add them onto your policy for an extra fee. These include

  • Breakdown cover.
  • Lost Keys.
  • Windscreen cover.
  • Courtesy Car.
  • Personal accident cover. 

Hopefully car insurance will be one of those things that you always have to have but never need to use.

You may feel like that is just a waste of money but imagine if you are driving and are hit by an uninsured driver. It would create a lot of hassle, you would need to claim on your own insurance, even though the accident wasn’t your fault, which in turn would more than likely increase your premiums.

Everyone having car insurance brings you all peace of mind knowing that you are covered financially in case of an accident or intentional damage to your vehicle. It may be a costly monthly expense but in the long run is very much worth it, and if you never need to use it then consider yourself very lucky. 

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