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If you own or wish to buy a car, car insurance is not just an option—it is a legal necessity. And you wouldn't want it any other way. If you are involved in a car accident or have your car stolen, having the right kind of auto insurance can help to ease a difficult situation.

Car insurance protects you against financial loss if you’re involved in an accident. It is a contract between you and the car insurance company. You agree to pay the premium and the auto insurance company agrees to pay your losses as agreed in your policy.

Auto insurance provides property, liability and medical coverage:

The world of motor insurance is a complex one. There are many different policies to choose from, and it's not always easy to know the right one for you - and at a cost that won't be too much.

The minimum car insurance cover is called ‘third party'. This covers you if you injure someone else or damage their property.

The next level up includes 'fire and theft' insurance, and this covers loss and damage if your vehicle is burnt or stolen. However it will not protect you against damage to your car if you're involved in an accident, or if it is vandalized.

Comprehensive insurance pays for the damage to your car from a wide range of causes, including accidents and fire and theft. Other benefits can include limited cover for items stolen from your car, medical expenses and personal accident protection.


The cost of car insurance can vary greatly - an insurance broker may be able to select the best policy for you. However, many factors will influence the premium you have to pay, such as:

•  The type of car you drive. The more powerful the engine, the more expensive the car is to repair, and the more likely it is to be broken into or stolen will all affect the premium.

•  The area you live, your occupation(job) and where your car is parked can have an effect. If you live in the inner city where you are more likely to have an accident or have your car stolen, you will pay more than someone who lives in less risky suburbs. The same applies if you use your car for work. Whether your car is kept in a garage can also make a difference. Cover for drivers under the age of 25 will also affect the premium - costs can be kept lower by limiting the drivers to you, or just you and your legal partner.

•  Your age and driving experience can make a difference. Young drivers are more likely to be involved in accidents, while older people tend to be more careful. Car Insurers usually have a basic rate to drivers aged 30-49. If you're younger, your premium is likely to be higher due to the higher risk. If you're older, you may qualify for a discount. Any disabilities you have may also make a difference.

•  If you've been convicted of motoring offences, or have a bad accident history, you will probably have to pay a higher premium.

•  Before an insurance company will provide you motor insurance it will want to consider all the risks involved. So before you can get a formal car insurance quotation you will need to answer detailed questions covering many of the points outlined above. Remember - if you fail to provide accurate information a future claim may be refused.

You may be able to reduce the premium you pay by restricting the cover. For example - you could restrict the number of people who will drive the vehicle. But be careful - you don't want to realize that nobody can drive the car in an emergency.