Different Car Insurance Policies Explained

Car Insurance

If you are the owner of a car, it is important that you have a full understanding of all the different legal requirements in order to keep yourself right.  These relate to safety, taxation and insurance.  If you don’t get this right and are found to be driving a motor vehicle illegally, you will find yourself prosecuted and potentially the car taken off you.  There is no excuse for ignorance and generally, the rules remain the same and have not changed for years. 

Any modifications to the laws are well publicised and the DVLA will keep a watch to make sure that the cars are legal.  It is clearly a legal requirement that people have a level of car insurance to protect not only themselves but anyone else that may be involved in an accident.  Driving a car without this is a serious offence.  It can be quite complicated to know exactly what type of insurance you should have and when.  Here are some of the options.

Personal Car Insurance

Probably the most common type of car insurance is personal car insurance.  This is when a car is being used for personal use.  This does not involve driving to and from work and this must be covered in the policy separately. This type of car insurance will get cheaper each year if the insured driver has not had an accident and has a good history of “no claims”.  There is normally an excess amount associated with this insurance and the lower the excess, the higher the policy premium will be. 

Business Car Insurance

If you are driving a car for business reasons, then it is important that your car insurance covers you for this.  This is different from your personal insurance and it must be declared and quoted for if you are planning to use the car for business reasons.  If you do not do this and drive the car for business reasons and a claim is made, this could invalidate the insurance policy.  Some companies may ask individuals to drive their own car for business reasons. This should be challenged unless the company is going to cover the insurance. Alternatively, the company should get you alternative transport, such as a hire car.

Trade Insurance

Motor trade insurance is sometimes a blind spot and people are not aware of it.  If you are a motor trader and people are using the car for test runs then this would not come under the personal insurance the person holds, nor the business insurance.  As such a specific trade insurance quote is needed.  You can get both information on this type of insurance as well as quotes at www.quotezone.co.uk/motor-trade-insurance.

Conclusion

Make sure that not only do you have insurance cover for your car, but you also have the correct level of insurance.  Read the small print in any policy and if you are not 100% sure if you are covered, be safe and do not drive and contact the insurance company for clarification.

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