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What Is Motor Insurance? |
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 Car insurance was introduced around 1930 in the UK.
Car insurance is a legal requirement if driving on our public roads. The minimum level of cover required is
currently Third Party Only. Third Party Only (TPO) provides a very low level of cover and is not recommended
due to the minimal financial security it provides.
At the very least you should consider TPFT [Third
Party Fire & Theft]. Fully Comprehensive insurance is the
recommended level of cover and contrary to belief is often not more
expensive for people with 3 or more years no claims bonus than TPFT!
Car Insurance protects you against financial liability in the event
of accidents. Many car insurance policies today may also include some
Legal Cover. The level of cover you choose will dictate whether the
extent of cover you will benefit from should the worst happen. Third
Party Only Cover does not include payments towards the repair of your
own vehicle. A third party is the other persons property and well
being, not yours. This includes members of the public such as cyclists
and pedestrians. Only Comprehensive insurance covers damage to your
vehicle in an accident. TPFT will include payment to you should your
car be stolen of be involved in a fire. Due to high levels of fraud
you should expect an investigation first though! When you buy Car
Insurance, your insurer will usually issue three main documents:
- You may also receive a Cover Note.
[Temporary Policy - Temporary Certificate of Insurance]
- The Certificate of Insurance.
[Official Evidence of Insurance]
- The Policy Document.
[Contains Full Terms & Conditions of your policy]
Note that FSA regulations state:
- You must ensure the policy provides you the level of cover required.
- You are entitled to a cooling off period. Usually 14 days.
- There should be no small print/difficult language in policy documents.
- If you are not sure about anything ask your insurer to explain.
Always check your policy VERY carefully. You should not be confused by the wording. If in doubt ask your insurer or insurance
advisor to explain anything that you are confused by.
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