Motor insurance is something that you or any other person driving your vehicle in the UK is required to take out in case of an accident. The main function of motor insurance cover is to protect the policy holder against liability in the event of an accident. Just as there are many different companies out there who can provide low cost quotes, there are also different types of cover to choose from. Some policies serve this one purpose alone, other types of cover will also insure the driver's own vehicle.
The two main types of policy are detailed below:
Third Party Motor Insurance
Third party protection will cover a motorist in the event of a collision with another vehicle, but the policy holder cannot claim for his or her own vehicle. These policies generally cover liability for the following:
Another individual's property.
A third party, including passengers.
Caused by a caravan or trailer that is attached to the insured vehicle.
Caused by any passengers within the vehicle.
Comprehensive Motor Insurance
This level of cover protects you against liability for any third party claim, as well as covering for loss, accidental dents, knocks etc to the policy holder's own vehicle. Fully-comprehensive insurance should cover you for all of the liabilities listed for third party cover, as well as:
Repairs to the insured vehicle brought about through an accident .
Loss to personal possessions within the car (within a specified limit).
Medical expenses (within a stated limit).
Personal accident benefit is also often granted to the policyholder's beneficiaries should he or she pass away. This cover is sometimes extended to the policyholder's immediate family.
Please note that the above summaries are intended as a guide to different insurance policies. All policies will differ and you should always check what is included in each case before taking out the insurance.
How the process works
When you buy your car insurance, you should receive two documents from the insurance company, the certificate of insurance and your policy document. The latter outlines specific terms and conditions that apply to your particular policy. It will include details of your vehicle, as well as information about you and any other drivers included on your insurance.