Auto insurance involves purchasing of insurance when a vehicle like a car, truck or any other road vehicle is bought. It is used for protection against any kind of damage to the vehicle during an accident which might lead to liability. In the UK, insurance is of utmost importance.
Importance of UK auto insurance
It is quite risky to drive a vehicle in any part of UK as the accident and collision statistics indicate that the number of accidents is increasing annually. Due to this it is important to have direct auto insurance coverage to be protected from any form of damage to the vehicle as well as to safeguard self. At times a fully comprehensive auto insurance policy might be quite expensive. Under such a case, you can opt for third party insurance. A minimum of third party insurance is mandatory in UK and is a legal requirement per the RTA 1988.
Insurance Categories in UK
There are many types of auto insurance in UK which are:
- Direct Auto insurance is the protection that you purchase directly from an auto insurance company and it takes care of personal physical injury, damage to your vehicle or any kind of accidents or collisions.
- Third Party Auto Insurance takes care of any damage to a car which does not belong to you and is not your own and protection towards injuries to any person.
- Fire and Theft Auto Insurance takes care of damages to the car due to fire or if stolen.
- Comprehensive Car Insurance involves coverage of third party and damage due to fire and theft as well as any damage to your car regardless of reason of the damage or accident and whose fault.
Norms towards UK auto insurance
The UK government has set up a law, Road Traffic Act 1988 which indicates that anybody owning a vehicle or uses a vehicle on the road should have at least third party personal injury insurance. According to the Act you should be either be insured, have a security, or have made a specified deposit with the Accountant General of the Supreme Court towards liability for injuries to others or property of others due to driving of a vehicle on a public road or in other public places. It is an offence to use a car without having at least Third Party Auto insurance.
The insurance policy certificate provided by the insurance company is legal evidence that the vehicle indicated on the document is insured and should be with you at all times while driving a vehicle. If you do not have it when requested for inspection or its proof is not found by the Police National Computer, then you will no longer be issued a HORT/1. If you are not able to provide an insurance certificate then it is considered to be an offence.
Thus it is mandatory to own auto insurance in UK if you want to own a vehicle or drive it in the country. You will have to face the consequences if you do not have an insurance which can be as much as an offence.