| Automobile insurance is one of those grudge | | | | insurers themselves and some automobile |
| purchases that the law requires us to make. The | | | | associations have established that younger drivers |
| reasoning behind the need for a motor insurance | | | | are more likely to be involved in a collision and that if |
| policy is straightforward. If we are unfortunate | | | | a young driver does cause an accident the losses are |
| enough to be involved in a motor accident, the | | | | likely to be higher. The insurance premium will fall as |
| responsibility for which lies at our own door, in terms | | | | the young driver matures, except, of course, if he or |
| of fault allocation, we will be liable to recompense the | | | | she is involved in an accident resulting in a claim being |
| injured third party for our errant driving. If the | | | | made. As long as a driver keeps free from any |
| accident was a relatively minor affair then the | | | | accidents that are his or her fault, the insurance |
| financial implications are likely to be correspondingly | | | | premiums he pays are likely to reduce and remain |
| small. However, if the accident was a serious one, | | | | relatively low. The reduction of premiums, by reason |
| resulting in damage to an expensive piece of | | | | of the driver being awarded a "no-claims bonus" is |
| property or, worse still, serious personal injury or | | | | likely to be lost if a claim is made, although certain |
| even death, the financial consequences are likely to | | | | policies do allow, for a slightly increased premium, a |
| be grave indeed. | | | | driver to have a protected no-claims bonus. With this |
| Because very few people have what might amount | | | | a driver can keep the valuable reduced premium even |
| to several million dollars to settle an expensive lawsuit | | | | if involved in a claim. Another way in which the pain |
| for damages caused in a motor collision, were it not | | | | of paying expensive insurance premiums can be |
| for the requirement that drivers have third party | | | | reduced is by paying them monthly or quarterly |
| liability insurance seriously injured parties may find | | | | rather than once a year. A small amount of interest is |
| themselves unable to recover their losses because of | | | | likely to be added in recognition of thee deferral of |
| the fact that the person responsible for causing the | | | | the premium payments but many people find it more |
| accident is impecunious. That would clearly be an | | | | manageable than paying one large amount at once. |
| untenable situation. Therefore, to prevent an injustice | | | | Whatever the amount of the insurance premium it is |
| such as this, drivers are required to invest in an | | | | vital that drivers ensure that they have a valid third |
| insurance policy, which, in the event of a third party | | | | party policy as prescribed by the law. Not only do |
| suffering losses, will recompense that third party. | | | | they avoid criminal liability, they also ensure that an |
| Typically, insurance policies are more expensive the | | | | innocent victim of their negligent or careless driving is |
| younger the driver is, as statistics compiled by | | | | adequately recompensed. |