In our first guest blog post by Joanna Armie she explains how car insurance works and why young drivers are finding the costs extremely difficult to swallow.

What is car insurance?

It refers to insurance for trucks, cars, motorcycles and other vehicles. It provides protection of finance against damage of the vehicle and / or injury to the driver or passengers occurring from traffic collisions. Regulations and terms of car insurance vary from one state or country to another.

What is the Government policy on car insurance?

In many countries, it is a requirement to have car insurance before keeping or using any car in roads. Most of the jurisdictions relate the insurance to both the car and the driver.

In several countries, they have tried to implement an insurance plan known as pay – as – you – drive which is paid through petrol tax. This plan increases insurance efficiency because the plan charges based on kilometers covered.

Car insurance in the UK explained

In United Kingdom, it is a requirement for everyone with a vehicle on public road to have 3rd party personal – injury insurance at least. The law was introduced in 1930. As of year 1991, every motorist is required by law to deposit 500, 000 Euros with the General of the Supreme Court Accountant, have a security or be insured.

When you use a car or allow another person to use the car without the insurance on public land, it is an offence. The following are the different types of car insurance available;

  • Road Traffic Act only Insurance – it have a limit of 1,000,000 Euros for 3rd party property damage
  • Third Party only insurance – it only covers third parties’ liability but not other risks
  • Comprehensive insurance – it is the most expensive insurance type for it covers vandalism, damage to the car and all risks involved.

Vehicles owned by education authorities, police authorities, national park authorities, local authorities and fire authorities are exempted from the requirements of the law.

The following are the items that can be covered by car insurance:

  1. Insured vehicle
  2.  Insured party
  3. Third parties – they can be people or cars
  4. Cost of towering your vehicle
  5. Cost of renting a car if yours is damaged

Although car insurance is good for your own good, your car and third parties, the following are its drawbacks;

  • It is expensive – even the cheapest car insurance cover cost money
  • Time consuming – this especially when setting up a plan for car insurance
  • Over hyped policies which occur when after taking the cover, you later find that it is not included what you are claiming for.

All of this can be a disadvantage of car insurance for young drivers as it can mean expense they often cannot afford. Most young drivers are just starting out in their careers or maybe even still studying so the cost of insurance can seem unimaginable.

Some of the insurers’ premium charges on cars owned by teenagers are so high to cover the risk exposed by the teenagers. For example, driving a car at night and lack of experience in risky roads. There are some insurers who will offer better rates if a young driver has taken a pass plus exam so check with your instructor for details.

Guest blogger bio
Joana Armie is a blogger from London UK. She has  interest in reading and writing articles. She is busy doing a research work on DVLA contacts which explains about procedure for applying for driving license.

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