Car insurance

What you need to know when applying for car insurance

Remember that you are obliged by law to have car insurance to drive your vehicle in the UK. The legal minimum is third party insurance, which means that in case of an accident causing damage or injury to any other party (for example, person, vehicle, property or animal). The insurance will cover the damage to third party, but doesn’t cover any other costs related to your own vehicle.

The key in determining insurance price is to estimate how likely it is that the driver will make a claim. Therefore, when applying for car insurance you will be asked a number of questions, which often include the following:
  • Details on your vehicle and the purpose of its usage
  • The ages of the future users of the vehicle
  • Existing penalty points on your licence or convictions for driving offences, if any
  • Recent insurance claims, if any
  • How long you have been driving for (if this is not your first insurance)
  • No-claims bonus, if any
Be prepared to provide honest answers to all the questions asked. After that you will be given a quote and once accepted, the insurance documents will be sent to you. 

Car insurance documents

Three key insurance documents include: the certificate, the policy and the schedule. 

The certificate is the document that states the insurance cover. Insurance certificate is required in case of an accident, if the vehicle needs to be taxed or if asked for by the police.
The policy is the detailed description of the terms and conditions of the insurance coverage.
The schedule specifies the details of your policy, i.e. possible excesses and no-claim discount.