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8.2.2 Motor insurance

UK law requires all car drivers to take out car insurance.

If you own a car the legal minimum obligatory insurance you must take out is third-party insurance. This will insure you against any damage you inflict on another person or their property (for example, your passengers, other drivers and their cars). However, it won’t cover your own costs.

Third-party, fire and theft insurance offers a higher level of cover. It will also pay for repairs or provide compensation if your own car is a write-off because of fire or theft.

Comprehensive insurance, as its name says, is comprehensive cover. It not only covers you for third party, fire and theft, it also covers damage or loss to your own car, whatever the cause.

Some policies include roadside assistance or a replacement car.

Figure 6