Quora Question: Which Insurance is Legally Required in the United Kingdom?


The United Kingdom boasts as Europe’s largest insurance market and the world’s fourth largest. In 2018, despite all the challenges facing the insurance industry in developed countries, the total value of premiums was $336.5 million.

Customers pay monthly or annual premiums, plus an excess cost, when filing a claim in the United Kingdom.

What are the bodies that regulate the insurance industry in the UK? According the British Insurance Brokers’ Association (BIBA), the insurance sector in the United Kingdom is regulated by two bodies:

  • The Prudential Regulatory Authority (PRA): is a division of the Bank of England that ensures insurers’ financial viability.
  • The Financial Conduct Authority (FCA): which supervises insurance firms’ behavior and practices.

According to recent figures, the United Kingdom had 436 insurance businesses in 2017.

Which Insurance is Legally Necessary in the United Kingdom?

Auto Insurance in the United Kingdom

Auto Insurance in the United Kingdom

Car insurance is required in the United Kingdom if you drive. Unless they’ve been designated ‘off the road’ if they’re not being used, you’ll need to insure all cars used on the road or maintained in public places. 

Auto insurance is also a major industry, with hundreds of companies selling coverage. The following are some of the most well-known vehicle insurance companies in the United Kingdom:

  • Aviva
  • AXA
  • esure
  • Churchill
  • Admiral
  • Direct Line
  • Civil Service Insurance Society
  • Dial Direct

Because there are so many options on the market, you should always shop around before purchasing or renewing your insurance. Use a comparison site to compare auto insurance quotes before settling for any.

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In the United Kingdom, there are three categories of auto insurance policies:

Third-party Insurance: It is the barest minimum required by law. This sort of policy does not pay your expenses if you cause an accident, but it does cover the costs of any other parties involved.

Third-party Liability, Fire, and Theft: This type of auto insurance coverage also covers you in the event that your car is stolen or damaged by fire.

Comprehensive Coverage: Comprehensive auto insurance policy varies by company, but it always includes coverage if your vehicle is damaged in an accident. Some providers additionally provide courtesy cars and 24-hour roadside assistance, which may include towing if necessary.

You should apply for a SORN if you own a car but don’t use it (Statutory Off Road Notification). Otherwise, you risk being fined, having your wheels clamped, or even being prosecuted in court.

The cost will be determined by the type of insurance, the driver’s profile, and the vehicle’s value. In 2018, the average annual auto insurance premium in the United Kingdom was £431.

Social Security Benefits

The United Kingdom has a social security system that is funded by mandatory National Insurance (NI) contributions made by all employees and self-employed workers who earn more than a certain amount.

What is national Insurance? National insurance which was first introduced by the Liberal government in 1911 is a tax paid in the UK by employed people, employers, and self-employed people who turn in more than a particular amount of profit. 

For employees, National Insurance serves as their income tax (although it’s not especially progressive. If anything, it is regressive once you get to higher rate taxpayer levels of income). Having a record of contributions is a necessary precursor to being able to claim various benefits, most notably the state pension.

NI contributions are now set at 12% of wages exceeding £166 per week for employees. Those earning more than £962 per week pay an extra 2% on top of their salary. Workers who are self-employed pay a different rate.

In London, NI payments fund the following: old-age pensions, unemployment benefits, maternity benefits, and bereavement support payments.

Health-care Coverage in the UK

The National Health Service (NHS) in the UK provides medical care to all residents, ranging from doctor’s appointments to emergency surgery. The service is tax-free and unrelated to insurance premiums.However, resources are limited, and waiting lists are frequently lengthy.

As a result, many consumers opt for private health insurance plans, which typically provide faster access to experts, better facilities, and shorter wait times.

Private healthcare plans come in many forms and sizes, and the cost is primarily determined by your personal circumstances.

Some employers include private healthcare as part of their employee benefits packages. Many significant corporations offer health insurance policies in the UK, including expat-friendly international firms like Cigna Global and Allianz Care.

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Dental Insurance in the United Kingdom

Children under the age of 18 (or 19 if in full-time education), pregnant women, and those who have had a baby in the last 12 months are eligible for free dental care.

Dental care is offered on the NHS, but unlike most other medical services, you will have to pay for it. In the United Kingdom, NHS dental care is provided at flat prices ranging from Band One (basic inspections and some emergency treatment) to Band Three (more extensive treatment) (crowns, dentures, lab work, etc.)

Rather than relying on the NHS, some people opt for a private dental plan. Dental plans aren’t normally included in private health insurance plans, but you can get them through your dentist or through an insurance company. The main reason for getting dental insurance is to avoid being surprised by large payments if you need extensive work done.

The following UK companies offer the best dental insurance policy for seniors: Cigna, Aflac, Renaissance Dental, Humana, United Healthcare and Aetna.

The cost of a dental insurance coverage in London is between £70 to £300 a year, with the amount varying between insurance providers and their policies.

Household Contents Insurance

Statistics show that an average UK household owns £35,000 of stuff. Although household contents insurance is not required by law in the UK, it is a good idea to consider buying coverage to safeguard your valuables in the event of an emergency.

Your household appliances and items will be protected against fire, theft, and floods, but you’ll normally have to pay extra for accidental damage coverage or personal possessions coverage, which insures items taken outside of your home.

What is the average cost of household contents insurance in the UK? The typical contents insurance cost in the UK is roughly £125 a year. This premium can vary depending on your deductibles, policy type and add-ons. You can get a basic coverage for £60 when you compare contents insurance quotes online or through an agent.

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Life Insurance in the UK

Life insurance in the UK

Life insurance is a unique way of protecting your loved ones financially in the event of your death. Even though life insurance may not be compulsory in the UK, as it is in many other countries, it’s highly recommended that you have one.

Why do you need life insurance in the UK? It is because the liability of repaying the mortgage will not fall on the family you left behind after your death if you have an active life insurance coverage.

Following death or, in some cases, serious injury, life insurance policies usually pay out a lump sum. Some policies have the option of payments being made at regular intervals over a period of time. There are certain providers who specialize in different types of life insurance coverage.

In the United Kingdom, you can purchase life insurance from private companies who will charge you a monthly premium based on the level of coverage you require. Employers are also increasingly including life insurance as part of their benefits packages.

What is the best life insurance policy for people over 50? The best life insurance policy for seniors is whole life. The premium for the whole life insurance policy doesn’t change throughout the life of the policy so long as it is paid. 

Desmond Dickson

Desmond Dickson is a freelance writer, business coach, and lead content manager of MyTopInsuranceBlogs.com. He supervises all insurance-related content targeting the United States & Canada.








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