Car insurance in Scotland works on the same premise as it does in England and Wales. The same minimum legal requirements exist that each driver has a policy which covers the driver and not the vehicle. If a third party uses that vehicle with permission from the owner, that driver must have a policy of their own that covers them to drive that car.
Minimum obligations state that each policy must cover the driver for third party damages in the event of an accident with another vehicle. It is mandatory to have insurance and any person caught without adequate insurance is committing an offense and can receive a heavy fine. Penalty points are added as endorsements to the licenses of drivers who are caught without insurance and a criminal record can also be a result if offenders continue to drive without adequate cover.
The cost of car insurance in Scotland is amongst the lowest in the entire United Kingdom. Rates are affected by the area where the vehicle is kept over night. Scotland has the lowest statistics of car crime and therefore, policies are set at a much lower rate.
A vehicle must have a current MOT test certificate if it is more than three years old. If it is less than three years old, it does not need an MOT certificate but must still have a valid road fund license disc on display in the window. Without all three of these provisions legally in place, you are deemed to be uninsured even if you have a valid policy.