Car insurance is a compulsory requirement in the United Kingdom and motorists are legally obliged to cover all liability requirements in relation to other road users. Legislation relating to car insurance is dictated by the Road Traffic Act and motorists are required to carry sufficient liability coverage to compensate for personal injury or any damage to property sustained by third party drivers. Using a motor vehicle without having sufficient car insurance coverage in place is a criminal offence.
However, motorists in the UK do have the option to purchase additional car insurance to protect their own vehicles. While liability coverage can be purchased in the form or third party or third party (fire and theft) car insurance, a blanket policy option can be acquired in the form of comprehensive car insurance.
Effectively, car insurance is a contract that is underwritten by a specialist company and the amount of coverage and the size of the premium are determined on a basis of risk. The terms and conditions of a car insurance policy can vary greatly from company to company and motorists are advised to read the small print carefully before agreeing to make a purchase.
Car insurance rates in the UK continue to rise but the growth of price comparison websites has led to a significant increase in new companies and this has created a more competitive marketplace where cheaper car insurance quotes can be found by the more discerning vehicle owner. With a small amount of basic information, price comparison websites display multiple car insurance policies and consumers can make an informed choice in a much shorter period of time.