Everything you need to know about Car Warranty Insurance in the UK

 

Most of the cars that are available presently are than what were available a few decades ago. Due to the level of sophistication involved, there is lesser maintenance involved and all the electronic systems will ensure that the car is in top-notch condition. However, it is essential that you have car insurance in place so that you are protected financially against any liabilities due to the car.

What makes Car Insurance essential?

In case your car is damaged or there is injury caused to any third party, your car insurance will cover for the same and you will be protected financially. As per the Road Traffic Act, all motorists will have to be insured against the liability that they might incur. In case of theft or damage to your car, it will be covered by the insurance provider. In most of the cases, you will necessarily have to insure your vehicle.

What happens when you are not insured?

In case you drive your car without a valid insurance, it is considered to be invalid and it might attract a fine; while disqualifying you from driving as well. There is no limit on the fine that could be levied and it will also attract penalty points on your license.
When you are caught without insurance, the police will also be able to seize and destroy your car.

Different Types of Car Insurance

You can choose from three different types of car warranty insurance in UK, which are as listed below:
  1. Third Party
Third party insurance is the least you can get to protect yourself and is usually the cheapest. It only covers for damages to third parties, such as people and property and not the car.

  1. Third Party, Fire and Theft
This type of insurance is similar to that of third party, but includes the cost of repairs or replacement of your car if it is damaged due to fire or stolen.

  1. Comprehensive
This is the best insurance you can get for your car and it protects you against all the damages caused to the car. In some cases, it might also include legal expenses and replacement car when your car is damaged.
In some insurance covers, you can also add named drivers as a part of your policy. In most of the insurance covers, it is essential that the main driver is the person who drives the car during an incident.

How is the car insurance cost calculated?

There are a variety of factors that are considered before deciding your premium, which includes your age, area of residence, type of car and your occupation. The premium is low when you pay a higher premium.

No-claims bonus

If you do not claim insurance, you will earn a no-claim bonus as a result of which, you will end up paying lesser premium with each passing year. Hence, make sure that you drive safely and do not claim your insurance!

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