Why Is Car Insurance Mandatory? | comparethemarket.com

A simples guide

Why Is Car Insurance Mandatory?

If you are wondering why you have to have a car insurance policy, then we’re here to give you the answers. We can even give you a helping hand finding the cheapest car insurance policy with our price comparison service.

We can also help you understand the vagaries of car insurance because it can seem as though it’s not simple, but it’s easier than you might think. There are all kinds of ways to affect the total cost and level of cover on offer.

Is car insurance a legal requirement?

Yes, simply put it’s a legal requirement to have an insurance policy in place when you drive a car. It provides financial protection if you have an accident and it can also cover injuries to other drivers, pedestrians and passengers in your car. At the bare minimum you need third party insurance, which covers the other party’s damage and injuries, but doesn’t cover any damage to your car or injury to you.

It’s also important to note that even if the car owner has an insurance policy, it normally doesn’t cover other people to drive the car, unless they’re added as named drivers. The penalties can be tough: if you’re caught driving without insurance, then you could get a fixed penalty of £300 and six points on your licence. If it goes to court you can be disqualified from driving altogether and face an unlimited fine.

The police can also seize the car and destroy it in the worst case scenario, so it really pays to have at least third party insurance in place.

why is car insurance mandatory

Why is car insurance mandatory?

Compulsory since the introduction of the Road Traffic Act 1930, car insurance is designed not specifically to protect you from the financial difficulty of an accident, but to protect the medical and financial interests of those whom you may crash into. While legally you’re required to be insured for the third party damage or injury, you don’t necessarily need to have insurance cover on your own expenses in the event of an accident that you cause.

Car insurance plays a huge role in the ease of mind for all drivers, could you imagine being involved in an accident that wasn’t your fault only to be left with medical bills and the costs of your repairs? Would it seem fair? This is why we have mandatory car insurance throughout the UK.

row of car keys hanging on hooks in the home

What would happen if you drove an uninsured car?

You don’t need to insure your car if it is off the road and you have filled out the proper SORN paperwork. If you haven’t completed a SORN, you can get a fixed penalty under the Continuous Insurance Enforcement system and if you don’t comply then you get a fixed penalty of £100. Your vehicle could also be clamped, or even impounded and destroyed. If it goes that far you could also get a fine of £1,000 and a driving conviction – you’ll need to declare this for the next 3-5 years.

Where can I get a fair car insurance premium?

When it comes to car insurance there are many options available to you, so it pays to shop around. Remember, not all insurers have the same terms and conditions and your age and driving experience will certainly be a factor when it come to the crunch.

You can compare prices among policies at the right level of cover for you with our comparison service, allowing you to make an informed decision and maximise your savings.

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