When do you need motor insurance
While driving or parked on a public road.
The police can ask you to show them your insurance certificate or cover note. If you can't produce the right document on the spot, they will give you seven days to do so at a police station of your choice.
If you are stopped under the 'fixed penalty system', the police can tell you which police station you must go to. If you can't produce a document within seven days, the police can seize your vehicle and sell it (although you can claim back the proceeds of the sale)
While keeping a vehicle off a public road
While keeping a vehicle off a public road
If you keep your vehicle off a public road, even if it is in your driveway, garage or away from your home address, the law says that you must have motor insurance.
You will not need to have insurance if your vehicle:
1. has a valid Statutory Off Road Notice (SORN)
2. has been kept off a public road since before 1 February 1998
3. has been scrapped, stolen or exported and proper notification has been made
4. is in between keepers
6. is held in stock by an authorised motor dealer
Choosing motor insurance
Before you buy motor insurance, decide who will be driving your car, and how much cover you would like. There are three main types of motor insurance:
Third party insurance
This is the minimum amount of insurance cover that you must have by law for your vehicle. Third party insurance only covers you for damage to someone else's vehicle or property, or injury to someone else in an accident which involves your car. This includes accidents caused by your passenger. If your vehicle is damaged in the accident you will have to pay for the repairs yourself.
Third party, fire and theft insurance
This includes third party cover and, additionally, damage to or loss of your car by fire or theft.
Comprehensive insurance
This includes third party, fire and theft insurance. In addition, it will also pay for repairs to your car. There is a range of extra cover that some policies provide, including:
1. cover for your own death or injury, or that of your partner or other member of your family, up to a limited amount
2. cover for your personal belongings if they are stolen from your vehicle or damaged
3. cover for your medical and legal expenses
4. hiring a replacement vehicle.
The cost of an insurance policy is called a 'premium'. Ask for quotes from several insurers to help you to get the best deal for your circumstances. You will need to compare:
1. what each policy covers, and any exclusions (risks which are specifically excluded, for example, allowing drivers under 21 to drive your car)
2. the amount of any excess. This is the first amount of any claim, for example the first $50, that you will have to pay yourself. Some policies allow you to pay a higher excess in return for a cheaper premium. Most young drivers (under 21 or 25 depending on the policy), and inexperienced drivers are expected to pay a compulsory excess which is higher than usual
3. discounts offered, for example a 10% discount for older drivers
4. the no claims bonus which increases for every year that no claims are made on your policy, up to a maximum amount. Most insurers will let you transfer the discount, if you want to change your insurer. You will also need to compare the amount by which your no claims bonus would be reduced if you made a claim
5. any policy restrictions, for example, only named drivers are covered.
Things to remember.
1. you must give your insurer or the person who sells you the insurance as much information as you can about yourself and your vehicle. You must, for example, tell your insurer or the person who sells you the insurance about any driving convictions, any medical condition which could affect your driving ability, or any motoring accidents, even if you have not claimed on your insurance as a result. The information you give will affect the level of your premium, and whether your insurer will pay out on any claim
2. if you want to include anyone else on your insurance, you must give details about them to your insurer, or the person who sells you the insurance
3. you must tell your insurer, in writing, about any change in your circumstances, for example a change of occupation. You should tell them as soon as the change occurs, and not wait until it's time to renew your policy
4. if you take out an insurance policy in your name, you should be the person who drives the vehicle most. If you take out motor insurance in someone else's name because it's cheaper, and they are not the main driver, the insurer can refuse to pay out on a claim
5. if the vehicle has been bought on credit, the finance company will usually insist that it is insured in the name of the person who has taken out the credit agreement.
6. Motor insurance policies normally run for a year. Your insurer does not have to send you a notice reminding you to renew, but most insurers do send out reminders
7. When you take out or renew motor insurance, you will get a cover note at first. This will be valid for 30 days or until you get a copy of the full insurance certificate. It is a criminal offence to drive without a cover note or full insurance certificate, so do not rely only on a telephone conversation where someone has told you that you are covered
8. You can cancel an insurance policy if you sell your vehicle, if it is stolen, or if it is written off. You should check your policy to see if you have a right to a refund of your premium.
3. discounts offered, for example a 10% discount for older drivers
4. the no claims bonus which increases for every year that no claims are made on your policy, up to a maximum amount. Most insurers will let you transfer the discount, if you want to change your insurer. You will also need to compare the amount by which your no claims bonus would be reduced if you made a claim
5. any policy restrictions, for example, only named drivers are covered.
Things to remember.
1. you must give your insurer or the person who sells you the insurance as much information as you can about yourself and your vehicle. You must, for example, tell your insurer or the person who sells you the insurance about any driving convictions, any medical condition which could affect your driving ability, or any motoring accidents, even if you have not claimed on your insurance as a result. The information you give will affect the level of your premium, and whether your insurer will pay out on any claim
2. if you want to include anyone else on your insurance, you must give details about them to your insurer, or the person who sells you the insurance
3. you must tell your insurer, in writing, about any change in your circumstances, for example a change of occupation. You should tell them as soon as the change occurs, and not wait until it's time to renew your policy
4. if you take out an insurance policy in your name, you should be the person who drives the vehicle most. If you take out motor insurance in someone else's name because it's cheaper, and they are not the main driver, the insurer can refuse to pay out on a claim
5. if the vehicle has been bought on credit, the finance company will usually insist that it is insured in the name of the person who has taken out the credit agreement.
6. Motor insurance policies normally run for a year. Your insurer does not have to send you a notice reminding you to renew, but most insurers do send out reminders
7. When you take out or renew motor insurance, you will get a cover note at first. This will be valid for 30 days or until you get a copy of the full insurance certificate. It is a criminal offence to drive without a cover note or full insurance certificate, so do not rely only on a telephone conversation where someone has told you that you are covered
8. You can cancel an insurance policy if you sell your vehicle, if it is stolen, or if it is written off. You should check your policy to see if you have a right to a refund of your premium.
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