Is car insurance mandatory in the UK?
Car insurance is a legal requirement and mandatory in the UK for any vehicle used on roads and in public places. It can provide financial protection if you have an accident, and it could cover injuries to other drivers, pedestrians and passengers in your car.
If anyone else drives your car, they also need to be insured to do so. You can add them to your policy as a named driver or they can arrange temporary car insurance.
What is the legal minimum cover I can have?
Third-party insurance is the bare minimum car insurance you need to drive legally on public roads.
Despite third party being the basic level of car insurance needed, don’t assume it will be the cheapest. Insurance providers assume that drivers who choose third-party insurance are more likely to make a claim, so often charge them more for cover.
Compare car insurance quotes to see whether third-party or comprehensive insurance is cheapest for you.
Why do I need car insurance?
Car insurance offers financial protection to others if your car is involved in an accident that damages another vehicle or property, or injures someone.
Imagine being involved in an accident that wasn’t your fault, only to be left with repair bills to your car. Car insurance gives drivers and road users the reassurance that if they’re involved in an accident, their costs could be covered.
Why is car insurance mandatory?
Car insurance laws in the UK protect drivers financially if an accident happens and a valid insurance claim is made. Without it, any third-party compensation would need to be paid by the driver, which could be financially devastating.
Car insurance became mandatory under the Road Traffic Act of 1930. The Act required drivers to be insured against any physical harm to another person by the use of a vehicle.
This was amended under The Road Traffic Act of 1988 to include compulsory insurance against third-party property damage.
What type of car insurance do I need?
You have the choice of three levels of insurance:
This offers the lowest level of cover and is the minimum required legally in the UK.
It covers you for injury or damage you cause to other people and their property. But it doesn’t provide you with any financial help for injury to you or repairs to your vehicle.
This includes everything that third-party cover offers and could pay out if your car is stolen or damaged by fire.
Although it protects you against the cost of damage or injury to other people and their vehicles, it won’t cover you for the cost of damage to your own car in an accident.
This offers the highest level of protection for you and your car.
It includes all the cover of a third-party fire and theft policy, as well as protecting you as a driver and could pay out for damage to your car. It might also include compensation for medical treatment, legal expenses and accidental damage.
What is considered a valid insurance policy?
A valid car insurance policy is one that’s issued by a legitimate insurance provider. This means they must be authorised by the Financial Conduct Authority (FCA) to legally sell financial products and provide claims management services.
You can use the financial services register on GOV.UK to check if an insurance company is registered.
A valid insurance policy must contain:
The policyholder’s name
The policy number
Vehicle information
Type of cover provided
Start and end date of cover.
You can check that your car or van has a valid insurance policy by using the Motor Insurance Database (askMID) – the central record of all insured vehicles in the UK. Its checking service is free to use.
Simply enter your registration details and within seconds you’ll know if your car is insured or not.
Do I have to insure my car if I’m not driving it?
If your car is off the road and not in use, then you don’t need to have valid car insurance or road tax. However, you’ll need to apply for a Statutory Off Road Notification (SORN).
Once your car has been declared as SORN, you must not drive or even park it on a public road. It must be kept on your driveway, private land or in a garage.
Just remember that if your car is damaged or stolen while it’s off road and uninsured, you won’t be able to make a claim. This means you’ll have to foot the bill for any repairs yourself.
What happens to my insurance if I sell my car?
If you sell or trade-in your car, you should let your insurance provider know.
After you’ve informed the Driver & Vehicle Licensing Agency (DVLA) of change in ownership, you’ll need to contact your insurance provider. If there’s still time to run on your policy, you have two options. You can:
Cancel your policy and ask for a refund for any remaining months – there may be a cancellation fee to pay.
Transfer your policy to your new car. The cost of your premium may change depending on the make, model and value of your new vehicle.
What would happen if I drove an uninsured car?
If you’re caught driving without insurance, you could get a fixed penalty of £300 and six points on your licence.
If your car is impounded, you’ll have to pay a fee of £160 to release it. You could also face higher insurance premiums in future as you’ll have driving convictions.
If your case goes to court, you could face an unlimited fine and be disqualified from driving altogether. The police also have the authority to seize your car and, in the worst-case scenario, even destroy it.
Even if the vehicle itself is insured, you could still be penalised if you’re not properly insured to drive it.
How can I compare car insurance?
You can compare car insurance with Compare the Market in just 7 minutes[1].
Just give us your details and driving history, and tell us about your car and how you use it. We’ll give you a list of quotes from a wide range of trusted providers to help you find cheap car insurance.
[1] Correct as of June 2026.
FAQs
Who is legally responsible for insuring a car?
It’s the duty of the registered keeper of the vehicle to ensure that the vehicle is insured – even if it’s driven by someone else.
How can I find out when my car insurance expires?
Your insurance certificate will have the date your insurance cover starts and finishes, so check your paperwork.
You’ll be sent a renewal reminder around a month before your policy is due to expire. It will tell you what your renewal premium will be.
You don’t have to renew your policy with your current provider. But if your policy is set to auto renew and you opt for car insurance from a different provider, you’ll need to tell your current provider not to renew your policy.
Is car insurance valid on the expiry date?
Your car insurance will no longer be valid after the expiry date. If you want to continue driving, you’ll need to renew your policy or take out cover with a new insurance provider.
Some certificates of car insurance will state the exact date and time your policy expires to avoid confusion. For example, end of cover: 23.59 on 25 July 2024.
If you’re not clear about the expiry date and time, contact your insurance provider for clarification.
I have an insurance policy to drive any car. Does this mean I’ll always be covered?
If you have cover for driving other cars as part of your comprehensive car insurance, it’s likely that you’ll have third-party cover only.
The circumstances in which you can drive another car may also be limited to emergencies only – so always check your policy before you get behind the wheel.
Can car insurance policies overlap?
It’s possible for policies to overlap. For example, if you make an error with the renewal dates or your policy has renewed automatically without you realising.
Contact your new provider to see if they can change the start date of your policy, and cancel the automatically renewed one as soon as possible. You may be charged a cancellation fee.
Can I ever drive a car that’s SORN?
The only time you can drive a SORN-declared car on public roads is if you’re taking it to and from a pre-booked MOT or other testing appointment.. But the vehicle will need to be insured while you’re driving it – temporary insurance might help here.
What happens if I’m hit by an uninsured driver?
Many comprehensive insurance policies come with an uninsured driver promise. This means you could get your no claims discount and excess back if you’re in an accident with an uninsured driver that wasn’t your fault.
If you’ve been injured or your property has been damaged by an uninsured driver, you may be able to claim compensation from the Motor Insurers’ Bureau (MIB).
Contact the MIB directly to find out what you can claim for, the deadlines for claiming and how to claim. See more about how the MIB might help at mib.org.uk or call 01908 830001.
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Rebecca Goodman is a freelance financial journalist who specialises in insurance, personal finance and consumer affairs.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
