Motor insurance

If you own or drive a car or motor vehicle you must have at least third party liability insurance - it's the law!

Some policies cover the replacement or repair of your vehicle, depending on the circumstances of an accident. You can choose from three levels of cover:

Third party (the minimum legal requirement) which covers you if you injure a third party, but does not cover damage to your own vehicle.

Third party, fire and theft which covers you if you injure a third party and also includes fire and theft (but not accidental damage) to your own vehicle.

Comprehensive (also known as "fully comp") which covers you if you injure a third party and also includes cover for fire, theft and accidental damage to your own vehicle.

The level of premium you pay depends on many factors including the make of car, engine size, your age and sex, your occupation and where you live. Before taking out car insurance think about who will be driving the vehicle, whether you will need a replacement while your vehicle is off the road, whether you use your car for work or for commuting to work, whether or not you need cover in Europe, for example if you're going to take a driving holiday.

You can usually add on additional cover like breakdown cover or legal protection if you're involved in an accident that's not your fault.

Top tips

  • Make sure you shop around for competitive car insurance.
  • Depending on your age, experience and claims history, the insurance company may offer you a no claims discount and your premium will reduce accordingly.
  • You can pay extra to protect your no claims bonus. This may well be worthwhile if you have a high no claims bonus, but it does not automatically mean your insurance premium will reduce in later years. It simply means that you'll keep the same level of no claims bonus if you make a claim on the policy.
  • You might receive a discount if you have more than one car and insure both with the same insurer.
  • Sometimes it's cheaper to add your spouse to the policy even if he or she does not drive the car!
  • If you have a multi-driver policy, look for an insurer who will provide all named drivers with a no claims history.
  • You'll tend to get lower premiums if you have a clean driving license.
  • Many of the larger companies that offer car insurance also offer other forms of insurance like home and life insurance. You may receive a discount for buying multiple forms of insurance from the same company.
  • Visual and mechanical changes to upgrade your vehicle or its performance beyond factory standard will increase the insurance premium. Under the terms of the policy you have a ‘duty of disclosure' so if you fail to tell them about any modifications then there is a possibility that a future claim might be rejected.   
  • Young male drivers always have the highest car insurance premiums but these can be significantly reduced by buying a low value car that also has a low insurance group rating.
  • If you're that bit older it's worth shopping around the insurance companies that specialise in the over 50's market, you may find substantial savings are available.
  • Certain categories of approved car alarms and immobilisers are recognised by all insurers and most will discount your premium if you have these fitted. Similarly for high value or sports cars, if you have a tracker security system fitted this will usually reduce your premium. 
  • Some cars are deemed to be of a much higher risk than others. When you are buying a car, check out its insurance group rating as car insurance premiums vary greatly between insurance groups. The cost of a group 1 car will be a fraction of the cost of insuring a group 20 car.
  • If you improve your driving skills many insurance companies will provide an additional discount for having passed an advanced driving qualification.
  • If you only drive a limited amount of miles each year, arrange a limited mileage insurance policy. However be aware that if you drive over the agreed limit you may find yourself uninsured.  

© Copyright Daily Mail & General Trust plc