Car insurance can provide you with cover if you’re involved in a car accident. It’s also a legal requirement if you own or drive a car, unless you declare the vehicle off-road (SORN) and keep it on private property.

If you’re caught without insurance, you could be fined a minimum of £300 and given six penalty points. If you end up in court, you might be given an unlimited fine and disqualified from driving.

If your car is involved in an accident, car insurance could provide cover for:

• ☂ injuries to you or other people
• ☂ damage to your car
• ☂ damage to another vehicle
• ☂ property damage

Car insurance could also cover you if your car is damaged by fire, attempted theft, or if it’s stolen.

Not all policies offer the same cover, so always read the small print and make sure you’re happy with any exclusions or limitations.

There are three main types of car insurance policy to choose from:

• ☂Third party car insurance – this is the minimum level of cover you need to drive on UK roads. It only covers the cost of compensating other people for injury or damage you cause. It doesn’t provide you with any financial help for injury or repairs to your vehicle.
• ☂ Third party, fire and theft – this covers the cost of damage or injury to third parties but it could also give you compensation if your car is damaged due to fire or theft or if it is stolen.
• ☂ Comprehensive car insurance – this includes all the cover of a third party fire and theft policy, but could also protect you as a driver and may pay out for damage to your car. It could also include compensation for a number of things such as medical treatment, legal expenses and accidental damage.

A typical car insurance policy lasts for 12 months and will need to be renewed each year. Your insurance might automatically renew when it’s about to expire, so remember to come back to Compare the Market to get the deal that’s right for you.

You might want to look into:

• ☂ Young driver car insurance
• ☂ Over 50s car insurance
• ☂ Black box car insurance

Car insurance is always a balance between cover and price. There’s no way to choose until you see what the different options will cost you – then you can weigh up the cover you get against the cost of the premiums.

The price you pay will depend on all kinds of things, including your age, occupation, driving experience, the car you drive and how you use your car.

Don’t assume that a third party policy is the cheaper option simply because it offers the minimum level of cover.

To get a car insurance quote there are a few things you’ll need to tell us about.

Your car – either your registration number or the car’s make, model and age. You’ll definitely need the registration number to buy a policy.

How you use your car – for pleasure and commuting, or for business purposes too.

No claims discount (NCD) – how many years you have (you’ll need proof from your current insurance provider if you’re switching to a different one).

Your driving history – any accidents, insurance claims and driving convictions from the past five years. Be honest, or you could invalidate your car insurance policy.

Additional drivers – details of any additional drivers you want to add to the policy.

You`ll also need to provide a few personal details: your name, how old you are, where you live and the type of job you do.

Yes, there is a possibility to transfer the insurance in the name of the buyer of the vehicle, provided the seller informs of such transfer in writing, to the insurance company. A fresh proposal form has to be filled in this case. There is a nominal fee charged for transfer of insurance with pro-rata recovery of NCB. This is charged from the date of transfer till the policy expires. Please note that transfer of ownership in comprehensive/package policies has to be recorded within 14 days from date of transfer. If the policyholder fails to do so, no claim will be payable for own damage to the vehicle.

A valid car Insurance is mandatory by law for all cars running on Indian roads. There are mainly two types of car insurance in India offered by general insurance companies in India. They are- third party insurance and comprehensive insurance.

Third party insurance covers for damage and liabilities of the third party only arising out of a collision. It is the most basic and cheapest form of car insurance to get. Comprehensive insurance covers for damages for the insured vehicle and also the liability of the third party arising from the accident.

Car insurance premium calculation is done primarily on the basis of Insured Declared Value (IDV) of the specific model. The IDV is calculated on the ex-showroom price of the car and it changes annually as per the depreciation rate of a certain model. The other factors affecting car insurance premium include no claim bonus which is rewarded to the insured for not making any claims during the policy term. No Claim Bonus(NCB) can be accumulated to a staggering 50% on the premium amount. Discount on car insurance can be availed if the car owner has installed an anti-theft device approved by ARAI (Automobile Research Association of India) or opts for a voluntary deductible.