The Road Traffic Act requires all motorists to be insured against their liability for injuries to others (including passengers) and for damage to other people's property resulting from use of a vehicle on a road. It is an offence to drive your car or allow others to drive it without insurance.

Two thirds of private motorists have comprehensive insurance. Most of the remainder choose third party fire and theft, with a small proportion taking out more limited forms of cover.

Third Party

This covers:

• Liability for injuries to other people, including passengers.
• Liability for damage to other people's property.
• Liability of passengers for accidents caused by them.
• Liability arising from the use of a caravan or trailer, while attached to the car.

Third Party Fire and Theft

As previous plus:

• Fire or Theft - If your car is not normally kept in a garage at night, theft cover may be excluded or subject to special conditions. There may be an "excess" - a part of the cost of the claim for which you are responsible - following an incident of theft. If you are selling your car make sure you receive proper payment before parting with it. Your insurance policy will not cover your loss if your car is taken from you by deception.

Comprehensive

As above and previous plus:

• Accidental damage to your own car. There may be an "excess" - part of the cost of the claim for which you are responsible.
• A personal accident benefit. Certain amounts are paid in the event of the death or specific permanent disablement of the policyholder - and sometimes his or her spouse or family member.
• Medical expenses necessarily incurred, up to a stated limit.
• Loss of or damage to personal effects in the car, up to a stated limit.