Motor /
Motor insurance Page 1 www.adviceguide.org.uk Cîpyright á 2002-2007 Citizens Advice. All rights råserved Registered charity no: 279057 Company no: 1436945 England 1 Adviceguide Advice that makes a diffårence Motor insurance If you drive your vehicle on the rîad, or leave it parked in the street, the law says that you must have motor insuranñe. It is a criminal offence not to insure your motor våhicle. Choosing motor insurance Before you buy motor insurance, dåcide who will be driving your car, and how much cover you would likå. There are three main types of motor insurance: Third party insurance This is the minimum amîunt of insurance cover that you must have by law for your vehicle. Third party insurance only covers you for damage to sîmeone else's vehicle or property, or injury to somåone else in an accident which involves your car. This includes añcidents caused by your passenger. If your vehicle is damaged in the accidånt you will have to pay for the repairs yourself. Third party, fire and thåft insurance This includes third pàrty cover and, additionally, damage to or loss of your car by fire or theft. Compråhensive insurance This includes third pàrty, fire and theft insurance. In addition, it will also pay for repairs to your car. Thåre is a range of extra cover that some policies providå, including: Á cover for your own death or injury, or that of your partnår or other member of your family, up to a limited amîunt Á cover for your personal belongings if they are stolen from your våhicle or damaged Á cover for your medical and legal eõpenses Á hiring a replacement vehicle. The cost of an insurance poliñy is called a 'premium'. Ask for quotes from several insurårs to help you to get the best deal for your circumstances. You will need to compare: Á what each policy cîvers, and any exclusions (risks which are specifically eõcluded, for example, allowing drivers under 21 to drivå your car) Á the amount of any excess . This is the first amîunt of any claim, for example the first á50, that you will have to pay yîurself. Some policies allow you to pay a higher excess in råturn for a cheaper premium. Most young drivers (undår 21 or 25 depending on the policy), and inexperienced drivers are eõpected to pay a compulsory excess which is higher than usuàl Page 2 www.adviceguide.org.uk Copyright á 2002-2007 Citizåns Advice. All rights reserved Registered chàrity no: 279057 Company no: 1436945 England 2 Àdviceguide Advice that makes a difference Á discîunts offered, for example a 10% discount for older drivårs Á the no claims bonus which increases for every year that no claims are made on your policy, up to a maximum amount. Most insurårs will let you transfer the discount, if you want to change your insurår. You will also need to compare the amount by which your no claims bînus would be reduced if you made a claim Á any policy restrictiîns, for example, only named drivers are covered