CHOOSING the right car insurance is difficult but necessary in the UK.
But how do car insurance work and what different types are there?
Car insurance is mandatory by law in the UK
How do car insurance rules work?
Car insurance can be confusing – first you need to choose which company to use, then you need to select the right cover.
When selecting insurance make sure you tick the right options and read the information on what you are covered for.
For example you may pick “social, domestic and pleasure (SDP)” but this doesn’t necessarily cover you for commuting.
Some companies require you to select “commuting”, or “business travel”.
Most insurance policies only apply when commuting to one place of work – and going out of your way to drop off a friend or family member could mean you’re not covered.
A diversion from your normal route could give your insurer a way to wriggle out of a claim – especially if you were knowingly doing so.
However some insurance companies allow you to commute to a different place on different days, as long as you only commute once a day.
Flexible working, for example if you hot desk at multiple offices, could also mean a regular commuting policy doesn’t cover you.
If you choose the wrong class of use, your car could be left uninsured and there can be severe penalties for driving without insurance.
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Car insurance is mandatory in the UK.
If you’re caught driving without valid insurance you could face:
Six penalty points added to your driving licence
A £300 fixed penalty
Losing your car if it’s seized by the police
Collection fees to reclaim your car
A crushed car if it’s not reclaimed within 14 days
Potential court prosecution – if this happens you can get an unlimited fine and be disqualified from driving.
One other thing to bear in mind is van insurance has different classes of use to car insurance – so it’s always important to check online which policy you will need to cover the trips you’re making.
What are the different types of car insurance?
There are three different types of car insurance the fully comprehensive, third party and third party, fire and theft.
The fully comprehensive is the highest level of insurance someone can have.
It covers you, your car and any others involved in an accident.
Furthermore, it includes all the cover of a third party fire and theft policy.
It might also include compensation for medical treatment, legal expenses and accidental damage.It
However, it doesn’t mean that it is the most expensive insurance.
A third party is the minimum insurance legally available.
It covers the costs of injury or damage you cause to other people or their property.
Nonetheless, it doesn’t give any protection for your own car when it is damaged or stolen.
And the last available is third party, fire and theft insurance.
As with third party insurance, this covers other people but it doesn’t protect you if your own car is damaged.
However it also covers repairs or replacement if your car is stolen or damaged by fire.
It is always important to compare available insurance for the cheapest option.
What do the experts say?
Graeme Trudgill, executive director of the British Insurance Brokers’ Association, said: “Travelling to a railway station on route to work, where the car is parked, is usually classed as commuting.
“The use does not allow you to drive to different places of work or, for example, to a training course for work at a different destination.
“Dropping someone else off at their place of work may also be classed as commuting by your insurer, providing this is on your normal commute.
“If you give someone a lift to their place of work which involves a diversion from your normal commute, please check with your insurance provider to clarify if they are happy this is considered to be commuting use.
She added: “Not all insurers do and so it is important not to assume that it is covered.”
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