Have you ever thought it odd that it is compulsory to buy motor insurance, but not compulsory to purchase other types of insurance, e.g. home, travel, and pet insurance? (Although you will struggle to get a mortgage if you do not have Home Buildings cover in place).
There is a compulsory element to motor insurance. That is the requirement to insure your legal liability for injury caused to other persons, and damage caused to the property of others. This is commonly referred to as ‘third party’ cover. It is not compulsory to be covered either comprehensively or for fire and theft risks.
Why is Motor Insurance Compulsory?
About the author:Business owner, consultant, and expert witness. Former motor and property insurance underwriter.
Date:June 06th, 2019