UK car insurance laws are not unique to England. Because they are part of the United Kingdom, Wales, Northern Ireland and Scotland also have to abide by the same car insurance legislation. It is a legal obligation for all road users to carry a valid auto insurance policy whenever they take a vehicle onto UK roads or highways.
There are three different types of car insurance available. Owners of new or expensive cars with higher resale values usually purchase fully comprehensive car insurance. This is a blanket form of car insurance and covers financial liabilities to third-party drivers for injuries and damage to property sustained in a road traffic accident. Fully comprehensive insurance also pays the cost of repairs to the vehicle a policyholder, even if they are found to be at fault in a collision situation.
The second type of car insurance available in the UK is third-party (fire and theft) coverage. This type of policy covers all third-party liabilities and also pays for the cost of repair or replacement if the vehicle of a policyholder is damaged by incidents of fire and theft. The final type of car insurance policy is simply known as third-party insurance, and only covers liabilities to other drivers.
Although road users in Scotland have to abide by the same laws as the rest of the United Kingdom, they generally enjoyed cheaper car insurance rates than the other three countries. Indeed, a recent magazine survey carried out in 2007 revealed that Dundee, a city on Scotland’s east coast, enjoyed the cheapest car insurance on the British mainland.