In 1930 the UK government made it a law that every person who drives needs to take out car insurance. Every motorist needs to be insured against injury, to a value of at least £500,000.  This includes car insurance for hire vehicles and cars rented whilst on holiday abroad. The minimum insurance needed by an individual is third party car insurance. This is offered at the cheapest rate and is the most basic type of car insurance that satisfies the act. It is a legal offence to drive without car insurance.

The insurance certificate provides legal evidence that a person has been properly insured. If a vehicle has been modified in any way the insurance company needs to be told about it or the insurance certificate is invalidated.

Most UK motorists also need to have a yearly tax disc. This is to confirm the vehicle is road worthy.

New drivers or drivers under 25 with little or no driving experience will tend to have higher insurance premiums than older more experienced drivers as the risk of an accident is considered higher on average. Many insurers will not even insure new drivers as they consider it too risky. The price of insurance tends to fall considerable after the age of 25 as these drivers are considered less risky.

When hiring a holiday car, insurance will also need to be taken out. Most holiday car insurers will only insure over 25 year-olds with a minimum of 3 years driving experience. This is to reduce the risk of a holiday car insurance claim.

It’s easier now than ever to take out a car insurance policy. Most supermarkets even offer car insurance and holiday car insurance policies at cheap rates.

The only vehicles which don’t need to have insurance are councils and local authorities, national park authorities, education authorities, police authorities, fire authorities and a few health service vehicles.