Unless you declare your car as off the road (SORN) car insurance is a legal requirement in the UK regardless of whether your car is being driven or not. Driving without insurance is illegal and WILL result in prosecution, as well as a ban.
Insurance is one of the greatest costs for new drivers and as of today, the average cost of fully comprehensive insurance for males aged 17-20 years old is £3625 and for females is £1869. It is crucial that you read this part of the guide carefully as you’ll learn how to reduce your premium significantly.
(i) The 3 main types of insurance policy:
1. Third Party: The most basic form of car insurance and the legal minimum requirement – If you have an accident, only damage to third parties and their property is covered. You are left responsible to pay for the damage to your vehicle.
2. Third Party Fire & Theft: This provides the same level of cover as Third Party insurance but also includes cover in the event your car is stolen or damaged in a fire.
3. Fully Comprehensive: The most complete insurance package available – It provides cover to yourself and your car AS WELL as third parties. Fire and theft is included too.
(ii) Which type of insurance policy to chose:
Always opt for a Fully Comprehensive Policy*. If you’re at fault in an accident, then YOUR insurer is held responsible for covering the claim. Repairing a damaged car is not cheap and unless you’re ‘Fully Comprehensive’ you’ll have to spend a lot of money having your car repaired or replaced.
You can often find Fully Comprehensive Insurance for only a fraction more expensive than Third Party or Third Party Fire & Theft, and it is definitely worth putting in that extra bit of effort when looking for cheap cover.
* The only exception to our advice is if the extra cost of Fully Comprehensive insurance is greater than the value of the car. Although this is rare, in this case it would be sensible to opt for a Third Party Policy.