What are the principles Motor Insurance is built upon?

During the process of applying for motor insurance you will be asked for many details ranging from personal details to location and security based questions. As with all insurance you are well advised to answer any and all questions as honestly as possible in order to ensure any claims are fully met by your insurance company in the event of an accident.

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What if I have a high performance car?: High performance cars tend to be very expensive, but its not just the buying of the car. It's also the cost of maintaining, repairing it, and particularly the cost of insuring that you need to fully consider. High performance Car Insurance can cost anywhere up to about £10,000 a year, so shopping around can save you a small fortune.
What is Third party only Insurance?: If you want yourself to be personally covered against accident or your vehicle to be covered you should consider a more comprehensive form of car insurance.
What is Third party fire and theft Motor insurance?: Whilst technically your legal requirements for motor insurance are covered by a third party only policy they only protect the people with whom you share the roads, not yourself. The law requires that people who are involved in an accident that is not caused by themselves, be compensated. So, with third party insurance you may be protected against other people's claims against you, but not if you are responsible for the accident.
How can I lower my Motor insurance premiums?: Many factors influence the premiums of your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote - some of which will affect your premium and some will not. To name a few of the important variables, the vehicle you drive, your gender and your age are all important to the insurer whilst they calculate your quote. Below we have discussed several of these key variables that are within the policyholder's control.
As a result of the accident, my car has been damaged - can I go ahead and get it repaired?: If you have taken out comprehensive car insurance cover and wish to claim under the policy, a specific claims procedure will be given to you when you contact the Claims Line to notify them of the accident. You should not repair your vehicle without the approval of your insurer.

Insurance is a way of smoothing out the financial risk of a life changing event, such as a car crash or a death in the family. The insurance companies are able to take a stance on the acceptable level of risk of insuring you. This means that they have access to massive amounts of data relating to the probability of you being in an accident. They then look at the value of the car, your age and experience and provide a quote for the insurance.

If the insurance company had only insured you they could have had to take a loss on your car insurance policy (in the event of a claim) – however over the thousands of people who all take insurance through them the statistics average out so that they are able to make money over all of the contracts as a whole.
An important principle is insurable interest, this refers to the ability to prove that in the event of an accident, or if your car was stolen you would suffer financially. This is to prevent con merchants from insuring someone else’s car then causing it to crash and claiming on the policy.

Should your car be damaged by another car, usually your insurer has to pay for it, and their outlay is reclaimed from the responsible driver. This process is commonly referred to as 'subrogation'.
In the event of a claim you also need to be able to prove ‘proximate cause’ this is when your vehicle has been damaged and it has been damaged by an event covered by your motor insurance policy.