Let's look at the difference between UK and US based car insurance policies.  I'm looking at the giant elephant in the room when I note that either we are paying in dollars or lbs.  When looking for a car insurance policy over seas, keep the exchange rate in mind, because it could make a big difference in your monthly premium.  But let's find out a way to see what UK car insurance companies have to offer.

Car insurance in the UK is much like the insurance market in the US, right now it's a buyers market.  Insurance companies are trying to come up with ways to win new customers and keep existing ones.  Two the top car insurance companies in the UK right now, Direct Line and HSBC, both are offering some great incentives.

Direct Line car insurance promises protection in case you get in an accident with an uninsured motorist.  This promise means that the accident will not affect your no claims discount.  HSBC's standard policies seem to be growing, where items of an insurance policy that used to be options are now standard.  Take for example, New Car Replacement and options to protect your no claims discount.

Although there are some differences in car insurance policy requirements from the US and UK, there is one huge similarity.  Any driver, in either country, are required by law to carry car insurance.  This isn't a suggestion, it's the law, where if broken can mean you lose your license or risk having your car impounded.  Furthermore, driving without insurance could have devastating consequences for your financial future.  For more imformation on what insurance in the UK is all about, please read the UK Insurance Overview.

Auto Insurance

Believe the commercials, the risk is real, and if you drive without insurance you are breaking the rules.  Is it worth losing your license, risking fines, or even worse ruining a stranger financial security because you didn't want to buy auto insurance?  Let's look at a few reasons why it's important to have auto insurance and not just because you are suppose to.

Just having an auto insurance policy is better than going without, but it's also important to be familiar with what your existing policy covers.  For instance, if you ever rent a vehicle, will your policy cover an accident in the rental vehicle?  Next, just because you may be injured in an automotive accident doesn't mean the auto insurance will cover living expenses and continuing costs if you become disabled.  This becomes a more glaring issue if you are at fault and without insurance to help the people you hit.

Throughout your life your auto insurance policy should grow with you.  If nothing else but to protect your assets and family in the case of a tragic costly accident.  Younger people who are renting and don't own a home won't need the level of auto insurance that someone older with more assets should be concerned with.  It's true, if your auto insurance doesn't cover the cost of an accident, you can be sued to cover the difference, putting all your assets including your home on the line.  So as you progress through life it's important to review your policies to make sure you are getting the proper coverage.

Lastly, to have a good policy doesn't necessarily mean that it should be a lot more expensive.  You can reduce the monthly cost of your auto insurance by simply increasing the deductible.  This means that you will be out of pocket more money in the case of an accident, but pay less per month for comparable policies.  Don't skimp on the important aspects of a policy, your life can change in the flash of an eye, protect yourself and your family.