Car insurance explained

Sorting out your car insurance can be a daunting and complicated task, so we've put together some information to help make it easier for you. From the type of cover available to how to get the right quote at the right price, you can find out what you need to know right here.

So what is car insurance and why do I need it?

Car insurance is required by law. It is to make sure people can cover the costs of any driving related damage or injury. For example if you crash your car into someone else, car insurance will pay for the repairs to the other vehicle.

Who looks after the victims of uninsured drivers?

The Motor Insurers' Bureau was set up in 1946 to provide a way of compensating the victims of uninsured or untraced motorists. All motor insurers must be members of the Motor Insurers' Bureau and contribute to its funding.

The Bureau has a Motor Insurance Database which helps identify uninsured drivers. It is run by the Motor Insurers' Information Centre and holds details of all private and fleet motor insurance policyholders. The police have access to the database so they can carry out on-the-spot checks on motorists to confirm they have current and valid insurance.

When an uninsured or untraced driver injures a third party or damages their property, the third party should receive compensation from the Motor Insurers' Bureau even if technically the policyholder breached the terms of the contract they hold with their insurance company.

If a car is stolen and the car thief damages property or injures someone, the insurance company for the car covers these costs.

The basics to car insurance »