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Why is car insurance mandatory?

Why is car insurance mandatory?

Like it or not, car insurance is a necessary cost. Depending on your level of cover, it can help with claims for damages to other people, their property, you and your car. 

Let’s take a closer look at why car insurance is mandatory, why you need it, and what would happen if you drove an uninsured car. 

Daniel Hutson
From the Motor team
minute read
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Posted 29 OCTOBER 2019

Is car insurance a legal requirement?

Yes, it’s a legal requirement to have an insurance policy in place if you own any road worthy vehicle. It provides financial protection if you have an accident, and it can also cover injuries to other drivers, pedestrians and passengers in your car. 

Third party insurance is the bare minimum you need to drive legally on public roads. It has been compulsory since it was introduced with the Road Traffic Act 1930.

However, third party only covers the other party’s damage and injuries if you’re involved in an accident where you’re at fault. It doesn’t cover any damage to your car or injury to you.

Also be aware that if anyone else drives your car, they need to be added as a named driver for your policy to be valid. 

Why do I need car insurance?

Car insurance is designed to protect you from the financial costs of an accident and to protect the medical and financial interests of anyone you crash into.

Imagine being involved in an accident that wasn’t your fault, only to be left with medical costs and repair bills. Car insurance gives drivers and road users the peace of mind that should the worst happen, their financial costs are covered.

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 case goes to court, you could face an unlimited fine and be disqualified from driving altogether. The police also have the authority to seize the car and even destroy it, in the worst case scenario.

The only time you don’t need to tax or insure your car is if it is off the road and not in use, in which case you 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.

How can I compare car insurance?

When it comes to car insurance there are many options available, so it pays to shop around.

Our price comparison service helps you to make an informed decision, so you can find the right level of cover to suit your needs and your budget.

Compare quotes in a matter of minutes and see if you could start saving.

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