Young drivers in the UK are not aware of the fact that car insurance today is a legal requirement. Infact there are so many drivers who do not even know whether their car is insured or not.

According to recent figures, there are 900,000 uninsured drivers between the age of 21 and 30. This number is likely to increase as a result of the current economic downturn.

The increase is likely to come from existing drivers. If the car insurance policies of car drivers run out, they are likely not to spend more on their car insurance.

Different types of car insurance

Car insurance is essential because of the obvious reasons of theft, damage, and accidents. There are three types of car insurance available and have varying degrees of protection depending on the kind of car insurance you choose to purchase.

The first is called third party insurance that provides the narrowest amount of cover. Like the name indicates, this form of insurance is only for third party damages. This form of insurance will help you pay the damages that have been incurred by a third party due to an accident for which you are responsible.

Fire and theft third party insurance will pay for you as well as the other party involved in addition to repairing your car. There is comprehensive car insurance for which you may negotiate the terms and conditions. This form of insurance is the most expensive as it is flexible. This means you can decide what your company will pay for, provided you pay a premium that is decided between you and the company. Under this form of car insurance, you can also insure your car accessories such as stereo systems, mirrors and the windscreen.

The prerequisites for car insurance

If you have just bought a vehicle, here are three things that you will need in order to get car insurance:

Registration: This is the first and foremost requirement for being eligible for car insurance. Registering your car is a legal prerequisite, so it is very important to register your car with the DVLA. Driving a car without registration is illegal and therefore you will need to do this for your car insurance to be valid.

MOT: Your MOT or ministry of transport test is very important to gauge, the road worthiness and safety of your car. It is an annual test that automobiles take, for, safety, roadworthiness and emissions when driving on public roads. This is applicable to you if you are renewing your car insurance policy, as most cars have to go through this MOT test if they are three years or older.

Road tax payment: There is no car insurance company that would insure or renew your car insurance, if you have pending taxes. Therefore, road tax has to be paid and the proof of this road tax has to be produced before the insurance company before getting insured.

Car insurance now warrants a very important position in the UK today, given that defaulters who fail to buy car insurance are fined severely.