About Motor Insurance

What is a motor insurance?

A motor insurance is basically an insurance one can buy for cars, trucks, and other vehicles for the purpose of providing protection against expenses incurred as a result of car accidents. Depending on the type of coverage, a typical motor insurance protects the client against the cost of vehicle repair following an accident, the cost of purchasing a new vehicle to replace another that has been stolen or damaged beyond economic repair, and legal liability claims against the driver or owner of the vehicle that has caused damage or injury to a third party.

One type of motor insurance covers the third party liability, while the comprehensive type of motor insurance covers all three above mentioned.

While some countries legally require motor vehicle insurance its motorists, more countries, like the UK, put a higher premium on insured driving. The UK, for example, has one of the worst reputations for uninsured driving. Estimates show that 1 in every 20 cars on the road are driven around without the necessary insurance coverage. This translates into a very hefty £15 - £30 insurance premiums paid for vehicle accidents by covered motorists to those uninsured. And the figures do not show any sign of decreasing.

As many companies are into the business of motor insurance, naturally, different terms are used for their policies. The three major types of motor insurance are There are three main types of motor insurance policy, namely: Third Party Only (TPO), Third Party Fire & Theft (TPF&T), and Comprehensive (Fully Comp.)