Guide to Motor Insurance
home insurance cover
In the UK, car insurance is renewed annually and
is required by law if you
want to use a vehicle on
a public road, ever since
What is motor insurance cover?
Motor insurance cover (also known as auto insurance, car insurance or vehicle insurance) is a type of insurance for cars, motorcycles (including mopeds and sidecars), vans and other motor vehicles. Motor insurance provides protection against:
Today the Road Traffic Act (1988 & 1991) requires that every vehicle registered in the UK must be taxed if used or kept on a public road. In order to tax your vehicle, you must have insurance that covers you against:
The Road Traffic Act also makes a distinction between vehicle 'users' and 'drivers', motor insurance indemnifies (provides cover to) the 'user' rather than the 'driver', so the insured user of a vehicle doesn't have to be its driver!
However, even if you are not the driver of the vehicle, you must have a financial interest in the vehicle you are insuring, for example you can't take out insurance on your boss's vehicle then claim if they crash! You have to have an insurable interest, i.e. show that you would suffer financially if your motor vehicle was stolen or damaged, for example if you owned the vehicle or were paying a loan on it.
How does motor insurance work...
In insurance terms, there are several parties (people) involved when a motor insurance claim is made, these are known as:
Motor insurance is designed to put you back in the same position financially that you were in before an insured loss occurred. In addition to the minimum insurance cover required by law, this booklet looks at the other types of motor insurance available to private (non-commercial) vehicle users, to enable you to make an informed decision about what cover is right for you.
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