Car Insurance protects motorists and drivers against liability in the event of accidents they may cause. It can also provide cover for the motorist`s own vehicle. If you are the cause of an accident the car insurance company will pay your liability to other people involved in the accident.

Car insurance is a contract between you and the insurer, specifying each party`s rights and obligations. Essentially the car insurance company promises to provide specific coverage for you in return for your payment of the car insurance premium.

Many different types of car insurance cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party`s property, but does not provide any cover for the individual`s own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties.

The basic legal requirement is Third Party Fire and Theft but this will not cover you for most things that can happen to your car.

The two main types of car insurance available in the UK are:

Third Party Fire & Theft Insurance which covers the following:

Liabilities for injuries to other people, including passengers

Liability for damage to other people`s property

Liability of passengers for accidents caused by them

Liability of fire and theft

Fully Comprehensive Insurance which covers the following:

Liabilities for injuries to other people, including passengers

Liability for damage to other people`s property

Liability of passengers for accidents caused by them

Accidental damage to your own car excluding any excess

A personal accident benefit

Medical expenses up to a stated limit

Loss or damage to personal effects in the car, up to a stated limit

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