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.