Car insurance is widely available from a variety of different insurance providers, as insurance is something that all drivers must have by law: The Road Traffic Act of 1991 requires every person who uses a vehicle to have a least third party personal injury insurance. In the UK, it is an offence to drive your car, or to allow others to drive it, without at least third party insurance whilst on the public highway.

This type of insurance insures the motorist against his/her liability for injuries to others as well as for damage to the other person’s property from the use of a vehicle. There are two other types of insurance policy available; third party, fire and theft and fully comprehensive. Third party, fire and theft, although will cover your car if it stolen or involved in a fire, it will still only cover the cost of damage to other peoples property sustained in an accident. Fully comprehensive cover is the highest level of cover available and will pay out if your car is stolen, involved in a fire or damaged in an accident. It will also cover any third party damage sustained. Naturally, if you opt to get comprehensive cover, this will be more expensive than if you were to purchase third party cover.

Car insurance is calculated by assessing a driver’s level of risk, which is based on factors such as the age and sex of the driver, the type of vehicle and its intended use. Statistics show that men are more likely to have a car accident than women, and newer drivers are more likely to have an accident than more experienced drivers. Insurance premiums are deduced with these figures in mind, meaning that a young, male driver is likely to have to pay much higher premiums than an experienced female driver, as they are considered to be a greater risk on the roads.