Legal minimum insurance cover for your car

Car insurance is a legal requirement in the UK, and has been since 1930. But what's the legal minimum insurance cover for your car? And why do we need to have it?

Let's dive into what the minimum cover looks like, and why it's important.

What’s the legal minimum insurance cover I need for my car?

Third party insurance is the legal minimum insurance for vehicles on UK roads.

This means you're covered if you have an accident that injures another person, or causes damage to another vehicle, property, or animal.

It won't cover any costs for your own vehicle though. So you won't be financially covered for any repairs to your car.

Why is car insurance mandatory?

Car insurance gives road users peace of mind when driving. If you were involved in an accident through no fault of your own, being left to pay for repairs would come as a shock. Car insurance means you're not left out of pocket.

Car insurance gives financial protection to others if your car is involved in an accident that injures someone, or damages another vehicle or property.

Car insurance is mandatory because it ensures financial protection for both drivers and others on the road. If you have an accident, insurance could cover repair costs, medical expenses, and legal fees, meaning you're not stuck with big bills to cover. It also protects others by covering injuries or damages caused by the insured driver.

Making car insurance mandatory helps reduce the number of uninsured drivers and helps promotes safer driving.

When did car insurance become mandatory in the UK?

Car insurance became mandatory in the UK in 1930 under the Road Traffic Act. The Act required drivers to be insured against any physical harm to another person by the use of a vehicle.

The Road Traffic Act of 1988 amended this to include compulsory insurance against third-party property damage.

It's a criminal offence to drive on UK roads without car insurance. And you'll need to update your car insurance policy if you change your name, address, or occupation. You'll also need to tell the DVLA.

Types of car insurance

There are 3 main types of car insurance:

• Third-party: This is the type of insurance that every driver is required to have by law. This gives cover if you damage someone else's car or injure someone. This type of insurance doesn't include cover for your own car, or injuries to you.
• Third-party, fire, and theft: It does what it says on the tin. This policy gives the same cover as third-party insurance. But also covers you if your car gets stolen or damaged by fire.
• Comprehensive: This is the highest level of protection you can buy. It covers you and your car, as well as damage and injury to someone else and their car.

You can get some specialist car insurance policies as well:

• Business car insurance: Business car insurance works the same as a standard car insurance policy, but adds in cover for any driving you do as part of your job. You can make a claim if you get into an accident while using your car for work. Or if your car gets stolen or damaged.
• Temporary car insurance: This is sometimes known as short-term car insurance. It's usually available from 1 hour to 28 days. If you're borrowing a friend's car, or test driving a new one, temporary insurance could be a great option. With a temporary policy, you only pay for cover for the time that you need it.

It's always worth checking what's included in your policy to check it's right for you.

Do I need insurance if I’m not driving my car?

Yes, you generally still need insurance even if you're not driving your car.

You don't need insurance if you've formally declared your car 'off the road' with a Statutory Off Road Notification (SORN) to the DVLA. This is the only way to legally not insure your car.

You must make a SORN if:

• Your car isn't taxed
• Your car isn't insured, even for a short period of time. Even if it's just a delay with renewing your policy
• You're going to dismantle your vehicle for parts before it's scrapped
• You're buying or getting a car and want to keep it off the road. It's worth noting that you can't transfer a SORN from the car's previous owner.

If you're getting a SORN for your car, you need to make sure it's parked either on your driveway or in a garage. You can't SORN a car if it's parked on a public road.

Driving an uninsured car can lead to fines and legal issues, so always make sure you're covered by car insurance.

What do I do if I get into an accident with an uninsured driver?

Driving an uninsured car is illegal, but what happens if someone else doesn't have insurance? If you're hit by an uninsured driver, here are your next steps:

• You should call the police within 24 hours and give details about the accident, including the date, time, and the other vehicle's details. You should also note down:

• The other vehicle's make, model, and registration number
• The other driver's name and address
• Vehicle damage and driving conditions
• Contact details and statements of any witnesses.

• You should contact your insurer as soon as possible, even if you don't want to make a claim. You'll need to tell your provider that the other driver is uninsured
• Contact the Motor Insurers' Bureau (MIB). You can contact the MIB directly or read more information on their website. The MIB can help you claim against uninsured drivers, 'hit and run' drivers, or those driving foreign-registered cars
• Make a claim. You can claim for vehicle damage within nine months of the accident, and for personal injury within three years.

If you hit an uninsured driver, they should be able to claim from your policy. Being uninsured doesn't change that, but you can still report them to the police for not having insurance.