Is motor insurance a legal requirement?

Getting a new car is exciting, but before you hit the road, it’s important to know the type of coverage you might need.

As well as tax, UK drivers have other obligations they need to fulfil before they begin driving.

Here’s everything you need to know about motor insurance, when you need it and how you can find a policy that suits you.

• Is motor insurance a legal requirement in the UK
• Motor insurance types explained
• When don’t I need motor insurance?
• What can happen if I don’t have motor insurance?
• Where can I get motor insurance?

Is motor insurance a legal requirement in the UK?

Motor insurance is a legal requirement in the UK for vehicles used on roads or public places. This means that you’ll need third party insurance cover at a minimum if you wish to drive a car or keep it parked in a public area (this includes the street, your driveway or your personal garage).

As well as being a legal requirement, this covers you if you’re involved in an accident, if your car is written off and if you or another driver is injured.

As the owner of the vehicle, you’ll need to be covered by default, but any one else that wants to legally drive it will also need to be named on the policy.

Motor insurance types explained

There are three major types of motor insurance:

Third party – This is generally the cheapest type of insurance and covers you if you cause damage to someone else’s vehicle or cause them injury during an accident. This will also cover your passengers, but won’t cover you or your vehicle.

Third party, fire and theft – This covers everything available with third party insurance but also covers your vehicle if it’s stolen or sustains fire damage.

Comprehensive – Comprehensive insurance covers yourself as well as third parties. This means that in the even of your vehicle being damaged or you being injured, you’ll be covered for the cost, even if it’s your fault.

Comprehensive insurance often has extras you can add to it, which are sometimes included as standard, depending on the insurer. These include compensation for medical treatment, legal expenses and accidental damage.

When don’t I need motor insurance?

There are some situations where car owners don’t need motor insurance:

• You have a Statutory Off Road Notification (SORN) that allows you to keep the vehicle off-road. You can apply for this through Gov.uk.
• Your vehicle has been scrapped, stolen or exported and you have reported this
• The vehicle has been purchased but still being held by the dealer

What can happen if I don’t have insurance?

It is an offence to not have insurance if your car is being used on the road or parked in a public place. Police can easily check whether a vehicle has insurance using the Motor Insurance Database.

If you’re caught driving without insurance, you could incur a penalty fine as well as points on your license. Your vehicle may also be seized, and you’ll have to pay a fee to release it.

Where can I get motor insurance?

Whether you’re looking to get third party or fully comprehensive coverage, insurance can be a straightforward process, with plenty of options available through well-known insurers, brokers and comparison websites.

However, to help you make the right decisions, here are some tips to make sure you purchase the right policy:

• Compare providers – Make sure you compare providers to give yourself the best chance of getting a good deal.
• Note the details – Take note of what your policy offers; remember that this can differ depending on the insurance provider.
• Think about what you need – Take into account what your needs are as a driver. For example, if you intend for your partner or a family member to drive the car, you’ll need to add them as a named driver.

Once you’re ready to start comparing car insurance policies, head over to Save More Money’s comparison page. It’s simple and helps you find the perfect policy at the best price.