Home / Money Articles / Car Insurance: Why Do We Need To Have It?

Car Insurance: Why Do We Need To Have It?

gap insurance
Loading 

Written by:

Car insurance cost increase

Mention the words car insurance in a group of friends and its bound to stir up some lively debate. Our car insurance costs are on the increase and for many younger drivers the cost is so high it makes driving unaffordable. When you’re driving round in an old banger worth £150 yet your insurance is costing you £2000 a year, many wonder why we need car insurance in the first place? Is it just to cover the value of my car, to cover my passengers, or simply another corporate money making scheme set up by the big insurance companies?

It’s the law

Since 1930 it has been law for all car owners in the UK to hold valid insurance to protect drivers from liability from 3rd parties in the event of accident or injury to themselves or their property from the result of your driving or your car. In other words, if your car or you driving your car causes damage or injury, your insurance will cover those costs and legal fees involved. You may think, well my car isn’t worth much and if I crash, I can just get another car instead of paying out insurance which costs more than my car? But what about the other person’s car and what if they are injured as a result of your accident? What if you can’t afford the repairs and what if they take you to court for damages or loss of earnings? Apart from it being unfair for the other person to have to pay out all these costs through no fault of their own, the legal costs involved may be substantial and could result in you having to pay out thousands of pounds in compensation and legal bills. Insurance would have covered all these costs.

Even the most experienced of drivers can never predict if they will be involved in an accident or not. Someone with 50 years driving experience with no accidents to date may encounter  snow, black ice or swerve to avoid an animal or pedestrian in the road which results in an accident and so insurance in mandatory for all, to protect yourself and those around you.

Which type of car insurance cover do you need?

The type of cover you take out will depend on your own circumstances. The minimum cover in the UK is third party which only covers damage or injury to others or their vehicles. If your own car is stolen, damaged by fire or damaged by accident, you will not be covered. Third party, fire and theft will cover the costs if your car is stolen or damaged by fire but will not cover your vehicle for damage as a result of an accident cause by you.  Comprehensive insurance will cover everything so consider the value of your car and if it’s stolen can you afford to buy a new one? If you crash and it’s your fault, can you afford the repairs to your car? If you can’t, then comprehensive insurance would probably be the wise choice.

Car Insurance key to car

Apart from the financial implications of not having insurance, there are the legal aspects to consider. Insurance is required by law and police are cracking down on motorists with no cover and have sophisticated methods of detecting those without. Automated number plate recognition devices can highlight your car to the police if you don’t have insurance and you can face a fine, points on your license (which in turn would cause any future insurance to increase) or even confiscation of your vehicle – so stay legal for your own benefit and other road users.

Share

Comments

About Rebecca Robinson

About Rebecca Robinson

After spending the last 8 years juggling life as a mum of two, wife and working full time as a Project Manager for a global telecommunications company, Rebecca Robinson made the decision to follow her love of writing and took the plunge; turning her passion into a full time career. Since becoming a full time writer, Rebecca has worked with various media and copy-writing companies and with the ability to make any topic relevant and interesting to the reader, now contributes to The Working Parent on articles ranging from credit cards to teenage relationships. Ever the optimist, Rebecca's dreams for the future include a house in the country filled with children, dogs and horses in the field!

Website: Rebecca Robinson

View all posts by