Car insurance brings reassurance. It's also a legal requirement under the Road Traffic Act.
That said, it's estimated that over one million cars on UK roads are not insured. Don't be tempted to add to that total. If you're caught without insurance, you'll get a heavy fine, points on your licence or even a disqualification, and it will be very difficult to get insured in the future. Not to mention a court order to pay damages that could hang over you for years!
You have legal liabilities to other road users, pedestrians, passengers, and people whose property is damaged in an accident. These 'third party' liabilities form the basis of the legal minimum insurance.
- Third Party Only fits the bill only if you place no value on your car and your life. You can smash your car up and maim yourself, but it only pays out on losses to third parties - passengers, other vehicles and their occupants, and owners of property into which you've crashed...
- Third Party, Fire & Theft adds cover for repairs to your car or compensation of its value if it's damaged or written off as a result of a fire or being stolen. Only worth considering for old cars whose value is marginally higher than the premium cost.
- Fully Comprehensive cover is what most motorists need. It's more expensive but adds cover for damage to your own car, its contents and yourself. It also usually gives third-party insurance cover when you're driving other people's cars. Your journey to work is included but you'll pay extra for cover for business use.