What are the laws regarding Motor insurance in the United Kingdom?

Motor insurance originated in 1930, when the government introduced a law that required every person who used a vehicle on the road to have some kind of motor insurance policy. This had to be third party personal injury cover at the very least.

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What is a Comprehensive Motor Insurance policy cover?: Comprehensive cover is when you cover your vehicle against most forms of damage that may occur to your vehicle. This doesn't mean you are covered for absolutely everything. If you look in depth into your comprehensive car insurance contract you'll probably find some significant exclusions.
How do I claim if the accident involves a third party?: In insurance terminology, a third party is defined as anyone else involved in an accident who is not the policy holder. Under UK law you are required at all times to have a minimum of act only third party insurance, but in reality most insurers only offer full third party insurance. This insurance will ONLY protect any damage done to third parties involved in an accident, not to your own vehicle. There is also the question of personal compensation, usually this is also covered by a third party policy, if in doubt check your policy documents.
What Do I need to do if using my Car abroad?: No matter where you go in Europe, be it Ireland, Wales, Scotland or the mainland, you are covered for at least the minimum level legally required in that country with your UK motor insurance policy.
I am at the scene of an accident - what do I do?: Take note of the registration number of all vehicles involved within the accident.
Excess: What is an excess? An excess is the amount you have to pay if you make a claim on a car insurance policy.

Since 1930, the important and operative word has been "user". The original laws in 1930 used the word "users" of vehicles to describe their subject. The Road Traffic Act has been updated and changed many times since then. This is a vital distinction, as the user of the vehicle doesn't have to be its driver. Your policy, according to Elliot vs Grey (1960), indemnifies the 'user' rather than the 'driver'. So, you need to be insured by law in order to have the "use of a Motor vehicle" when you are on the road.

Your motor insurance policy documents are the your most important car insurance documents as they prove that your car is insured, who it is insured with and other details such as the premium cost.

Note - Until the certificate has been delivered to you, your car insurance is not in force. Also, if you do not have a valid certificate about your person, you are not allowed to drive a vehicle. It is a criminal offence.

You always need to have at least a cover note, which should arrive before your certificate of insurance does. The certificate proves that you are fully insured under Uk law, but you will also get a policy document in which the finer details are set out.

The certificate should contain the policyholder's full name, the vehicle's registration number, the cover commencement date, the date of the policy’s expiry, the classes of people allowed to drive the vehicle and any additional limitations to its terms of use.

The Motor Insurers Bureau (MIB) was set up by the government to compensate the victims of accidents when the culprit happens to be untraceable or uninsured.