Insuring your car

If you drive a car, motorbike or other motorised vehicle, there is a legal requirement under the Road Traffic Act that you take out a motor insurance policy.

There are three types of basic cover available:

• Third party

  This provides cover for injury or death caused to other parties or damage caused to their property

• Third party fire and theft

  This covers injury or death to other parties or damage caused to their property, and also protects your own vehicle against theft or fire

• Comprehensive

  This covers you for causing injury to other parties or their property, including fire and theft cover, and also protects against accidental damage to your own vehicle.

Premiums

Your premium will depend on a number of factors, including:

• Your personal details (and those of any other drivers you wish to be included on your policy), such as where you live, your age, and your previous driving history, including previous accidents or convictions
• Whether you have built up any no-claims discount
• The level of cover you require
• The excess you will pay in the event of a claim
• The make and model of your car, and where it is stored (e.g. in a garage or on the road)
• The number of drivers on your policy
• The class of use
• The state of your licence

There are many different types of motor insurance policy available, and many ways to buy insurance. An insurance broker can help you to decide on the cover you need, and will provide a choice of insurers and policies to suit your requirements.

Minimising the risk

The following basic precautions can help to reduce the risk of theft:

• Always lock your car, and make sure that the windows, boot and sunroof are secured
• Remove valuables, such as credit cards and vehicle documents from the car, and place any other items out of sight
• Make sure the alarm/immobiliser system is activated
• Use an anti-theft device, such as a steering wheel or handbrake lock
• Park your vehicle in a well-lit area

You should always seek professional advice before committing to a new insurance product.

Useful links

British Insurance Brokers' Association

Association of British Insurers