Why Do We Need Car Insurance?

Since 1930 it has been a legal requirement in the UK for all vehicle users to be covered by insurance. This applies to all drivers regardless of whether or not they are the owner of the vehicle.

This legal position has resulted in the car insurance industry growing into a sophisticated multi-billion pound industry in the UK.

The legal compulsion to buy motor insurance is, in the first instance, about fulfilling two needs: protecting you legally in the event of damage or loss claims resulting from your use of the vehicle, and protecting the investment made in purchasing the vehicle. Effectively, a car insurance policy protects the policy holder and named drivers from potentially massive legal expenses and accident repair bills. It is an, albeit expensive, necessity and peace of mind not only for those covered by the policy, but for any members of the public unfortunate enough to be an unwitting victim of an accident and suffering loss or injury to person or property.

Reading LV's Car Insurance Page, the main additional benefits - aside from the obvious legal ones - are a replacement car, legal expenses cover and personal accident benefit. Churchill's car insurance page on the other hands cites 24 hour breakdown cover and repairs for five years for choosing them. Obviously this is something that depends on the car insurance company you choose.