Monday, November 10, 2008

Auto Insurance Requirements

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Auto Insurance Requirements
By Jon James

Motor Insurance basic requirements in the UK come greatly from legislation, specifically The Road Traffic Act, modified most recently in 1991. The Road Traffic Act is an act of Parliament, legislating traffic in the interest of safety. This includes regulations on speed limits, parking spaces, and of course insurance cover. The Road Traffic Act requires motorists to have, at the very least, cover for injuries to others and also property damage resulting from driver negligence on a public road or in a public place. Police regulate this legislation on public roads, however the laws of the Road Traffic Act cannot be enforced on private land.

The government requirements for drivers are an example of Third Party Insurance. Though Third Party Insurance covers damage to others and the property of others, it does not cover damage to the car belonging to the insured motorist. Other types of insurance cover include Third Party, fire and theft and comprehensive. Third Party, fire and theft will cover what was just mentioned as well as theft and damage caused by attempted theft and also fire. The third type of cover available is comprehensive insurance. Comprehensive insurance will protect for the risks already discussed plus: accidental and malicious damage to the vehicle, personal accident, a portion of medical expenses, loss or damage to personal property in the vehicle, replacement of vehicle within the first year, and also glass replacement/repair.

In addition to being required to have proper insurance cover, it is also required by law to have proof of such cover. The documents showing proof are insurance are obtained by the insurance company when signing up for an insurance policy. The police can request proof of insurance for inspection. If a motorist is unable to produce proper documentation for a police inspection, they are usually given seven days to produce these documents at a police station for verification. If the motorist still fails to produce legal proof of insurance, they will be guilty of a traffic offense.

Another requirement for motorists in the UK is the display of the vehicle excise duty disc. The vehicle excise duty is simply a road tax, similar to vehicle licensing fees and registration fees. This tax is collected yearly, and is enforced by the Driver and Vehicle Licensing Agency. According to requirements, the duty disc must be displayed in the car of the motorist in order to be legally driven on public roads. This practice is to enforce to a greater degree that motorists have proper insurance when driving on public roads.

To further aid in the protection of motorists using public roads is the Motor Insurers Bureau. Founded in 1946, the MIB is a private, non-government agency, which compensates motorists who were victims to the negligible acts of those who were uninsured. The MIB is a sort of last resort for those who cannot seek compensation from any other source, and must comply with the government and also the Road Traffic Act.

It is important to have the basic cover required by law, however because it is often difficult to receive compensation when uninsured motorists are at fault in an accident, comprehensive is often a good choice. You should also look into ways to reduce monthly premiums such as getting an immobiliser for the insured vehicle. Also, it is important to research what type of cover would be cheaper in the long run based on premiums, especially if the vehicle is worth less than ¤4000.

It is extremely important have appropriate cover. In researching the basic requirements for motor insurance in the UK, you will find out how to be properly protected against the risks of driving and keeping a motor vehicle. Also, in properly following the legal requirements of driving a motor vehicle, you will be protected against further expenses involved in the event of an accident.

http://www.simplyfinance.co.uk

Article Source: http://EzineArticles.com/?expert=Jon_James




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