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Introduction'''

 

Introduction

There are over 100 insurance companies across the UK that potentially have different cover and different prices. Information can vary from insurer to insurer and this is a guide to help you understand the world of car insurance.

There are over 100 insurance companies across the UK that potentially have different cover and different prices. Information can vary from insurer to insurer and this is a guide to help you understand the world of car insurance.

It is the law to have car insurance cover - it protects you and other drivers on the roads.  Insurance companies work out the chances and costs associated with any risk that they cover. These calculations give a 'premium' for each individual customer based on the likelihood that they will make a claim. If the claims happen, the insurance company pays out the amount of money they agreed to pay when they issued the insurance policy.  

It is the law to have car insurance cover - it protects you and other drivers on the roads.  Insurance companies work out the chances and costs associated with any risk that they cover. These calculations give a 'premium' for each individual customer based on the likelihood that they will make a claim. If the claims happen, the insurance company pays out the amount of money they agreed to pay when they issued the insurance policy.  

 

Make sure you read your car insurance policy carefully to check that it provides the cover you need and note any significant exclusion. Ensure that the policy is right for you and that you understand what is and is not covered. If you make a claim that is not covered or is excluded by your insurance, your insurer won't be able to pay your claim or refund your premiums.  

Make sure you read your car insurance policy carefully to check that it provides the cover you need and note any significant exclusion. Ensure that the policy is right for you and that you understand what is and is not covered. If you make a claim that is not covered or is excluded by your insurance, your insurer won't be able to pay your claim or refund your premiums.  

Many policies cover the policyholder while driving a car which belongs to someone else. However, cover will be limited to third party only, even if you have a comprehensive policy for your own car. Accidental damage to the borrowed car will not be covered by your insurance. Make sure that you have the car owner's permission to drive the vehicle and that the owner has arranged comprehensive insurance (e.g. by adding you as a driver under their policy) if they wish to do so. (If they do this, then claims involving their car, while you are driving, will be met by their policy.)  

Many policies cover the policyholder while driving a car which belongs to someone else. However, cover will be limited to third party only, even if you have a comprehensive policy for your own car. Accidental damage to the borrowed car will not be covered by your insurance. Make sure that you have the car owner's permission to drive the vehicle and that the owner has arranged comprehensive insurance (e.g. by adding you as a driver under their policy) if they wish to do so. (If they do this, then claims involving their car, while you are driving, will be met by their policy.)  

'''Types of Cover'''

'''Types of Cover'''  

There are four types of motor insurance policies, namely:

There are four types of motor insurance[http://www.swiftcover.com/carinsurance/]

     * Third Party Only (TPO)

     * Third Party Only (TPO)