Should I get car insurance when moving into a new house / flat?
Moving into a new home? Don't forget about car insurance. Discover the importance of having car insurance, the different coverage options available, and the legal requirements involved to make the right decision for your new pad.
You’re bound to be excited when moving into a new home. Trust us, we know. And while there’s so much to look forward to, there’s also a whole lot to take care of - particularly the essentials and relevant insurance. Along with looking at potential contents and buildings insurance, it’s important to think about whether you should sign up for car insurance when you move to a new place.
With public transport only increasing in cost and becoming less reliable, many people are realising that it’s far more beneficial to own a car - especially when you take into account the convenience and comfort factors. With the rise of leasing options, 0% deals and a shift towards electric cars, it’s becoming apparent that it can not only be cost-effective to own a car, but with manufacturers releasing “greener” vehicles, it can even reduce your carbon footprint, overall pollution, and won’t require expensive diesel or petrol to run the car.
In this blog, we’ll look at whether you should buy a car insurance policy when you move into a new property.
What is car insurance?
Car insurance is simply a policy you buy to cover you in the event of an accident, theft or other damage that may occur to your car. It’s also there to cover you in case you cause damage to another person’s vehicle, such as accidentally driving into the back of someone else’s car.
Do I need car insurance?
If you own a car, it’s a legal requirement to have car insurance. But, there are various types of car insurance, which can suit different drivers. The only exception is if your car is registered as off-road and not in use, where you apply for a ‘Statutory Off Road Notice’ (SORN) and can legally leave your car uninsured.
It’s important to remember that once you’ve officially declared your car as SORN, it has to be kept on a private driveway or garage and cannot be driven at all.
In addition, any damage or theft to your car while off-road and uninsured would mean that you would have to incur all losses or damage to the vehicle.
Types of car insurance
There are several types of car insurance policies available, each offering different levels of cover:
Third-party only
This is the most basic form of car insurance, and the minimum cover required by law in the UK. With a third-party policy, you’re covered for any damages or injury that you may cause to another driver and their vehicle. However, you don’t receive any cover for injury to yourself or any damage to your own vehicle.
Third-party, fire and theft
This type of policy is a step up in cover, where you receive all the cover that a standard third-party policy offers as well as being covered if your car is stolen or damaged by fire. It still doesn’t cover any repair costs if your car is damaged in a road accident, though.
Fully comprehensive
This is the highest level of cover available for drivers, with all the cover above included in addition to cover for damage to your vehicle. Some policies even include medical cover and legal expenses, and if not, they can easily be added to the policy.
How much does car insurance cost?
The Association of British Insurers (ABI) has said that the average cost of car insurance in the UK was £419 in 2022. This was for a fully comprehensive policy.
The cost of your insurance policy will depend on a variety of factors, such as your age and driving track record (such as whether you’ve made any previous claims or have any penalty points on your licence). Then, of course, an insurer will look at the make and model of your vehicle and its current value. Naturally, higher-powered and more expensive cars will cost more to insure. Insurers will also take into account where you live, and whether there is a high rate of crime, as well as whether you park your car on road, off road, in a garage or in a gated car park. Whether you opt for a fully comprehensive policy or an entry-level, third-party-only policy would also affect the price you pay.
What if I drive without insurance?
Driving without car insurance is not only illegal, but it could result in up to eight penalty points on your driving licence, a fixed penalty of £300, and would result in your future premiums being much higher as a result.
Summary
Although buying a car insurance policy may not be the most exciting process on your to-do list when you move house, it is a priority if you plan on owning and driving a car. In fact, you don’t even have to own your car, but the car must be insured if it’s on the road. It’s a legal requirement to have car insurance, but if you choose to declare it as SORN you won’t have to insure your vehicle. Many people still have car insurance for their vehicles even when declared as SORN, as any damage or theft would still be covered.
Whilst a third-party-only policy is the bare minimum, it’s always worth getting quotes for different levels of cover as a fully comprehensive policy may not be as expensive as you think and will grant you great peace of mind.