Car Insurance Explained: A Plain-English Guide for UK Drivers

Car insurance is a legal requirement for driving on UK roads, but the jargon can be confusing. This guide explains the basics so you can choose the right cover for your next car.

The three main types of cover

• Third party only: the legal minimum. It covers damage or injury you cause to other people and their property, but not your own car.
• Third party, fire and theft: as above, plus cover if your car is stolen or damaged by fire.
• Comprehensive: the highest level of cover, including damage to your own car. It is often no more expensive than lower cover, so always compare.

What affects your price?

Insurers look at things such as your age, driving experience, where you live and park, your job, annual mileage, claims history and the car itself. Every car has an insurance group from 1 to 50. Lower groups are usually cheaper to insure, which is why many first-time drivers choose smaller cars.

Excess and no claims discount

The excess is the amount you pay towards any claim. It is made up of a compulsory excess set by the insurer and any voluntary excess you choose. A higher voluntary excess can lower your premium, but only choose an amount you could afford to pay. Each year without a claim usually builds your no claims discount, which can reduce your price over time.

Tips to keep costs down

• Compare quotes from several insurers every year.
• Choose a car in a lower insurance group.
• Consider a telematics (black box) policy if you are a younger driver.
• Give accurate details. Wrong information can make a policy invalid.
• Never put a car in someone else name to get cheaper cover if you are the main driver. This is called fronting and it is illegal.

Insure before you drive away

Make sure your insurance is active before you drive a newly bought car home. Our team at Hillside Wheeler can give you the insurance group and details of any car in stock, so you can get quotes before you buy.