Thursday, 21 March 2013

Motor Insurance in London

Car insurance can be regarded as an act, measure or provision that offers protection, be it financial or otherwise; in the event where an undesirable event occurs with the car, such as accident, theft, fire etc. Each time your car is driven on a public road by either you or someone else, there is always potential risk of damage to your car, to yourself and to third parties and their property. In London and the UK, car insurance is mandatory for all car owners. Under the UK’s Road Traffic act, it is an offence to drive a car on a public road without insurance. 

The three types of car insurance in the UK are as follows:

·        Third Party Only (TPO) - (the minimum car insurance required by UK law)

·        Third Party Fire and Theft Car Insurance

·        Fully Comprehensive Car Insurance

Third Party Only (TPO) - (the minimum car insurance required by UK law)

Third Party only insurance covers the policyholder against the cost of damage to a third party's property or to the third party themselves.
This implies that if you crash into another car, a wall or if someone is injured by your car, the insurance policy will pay out for everything except damage to yourself or your property. It basically covers damage to anything or anyone effected by your car, except you. The insurance company will not pay out if your car is damaged, stolen or catches fire, nor will the insurance company pay for any of your medical expenses.

Third Party Fire and Theft Car Insurance

This is the same as third party only insurance, with the additional cover against your car catching fire or being stolen. Depending on the vehicle, this can be substantially more expensive than TPO.

Fully Comprehensive Car Insurance

A fully Comprehensive car insurance policy will offer the same protection as above, in addition to damage to your own car and or passengers, even if the accident or incident is your fault. Most Fully Comprehensive Insurance also offer additional cover for your belongings, windscreen cover, medical expenses etc. When comparing car insurance quotes, it is highly recommended that you look at the insurance policy (Certificate of Motor Insurance), and compare the cover being offered.
Remember that Comprehensive Insurance doesn't provide insurance cover for everything. The BIBA (British Insurance Broker Association) has suggested that a good comprehensive policy should provide six key protections as follows:
·        Cover for your spouse - as a 'named driver'. This shouldn't add to the cost
·        Third Party Repair - Pays for the cost of repairing someone else’ scar
·        Third Party Replacement - Pays for the cost of replacing someone else's car whilst theirs is being repaired following damage you've caused.
·        Damage to your car - Covers the cost of repairing or replacing your vehicle
·        Third party liability - Pays for the cost of repairing someone else's property (including caravans and trailers) if you damage it. It also covers injuries to passengers and any others involved in an accident.
·        Green Card - In addition, you can expect assistance to making motoring abroad easier. If you travel to continental Europe, you can ask your car insurance company to issue an international certificate of motor insurance, or 'Green Card'. This could simplify dealing with the authorities if you're in an accident.

There are numerous other components that can be added to this particular insurance policy. It’s just a matter of stating your preferences to the car insurance company. 

1 comment:

  1. Thanks you, it has been explained nicely.