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United Kingdom (UK) - Car Tax and Insurance
UK registered vehicles are taxed a Vehicle Excise Duty or VED. This tax includes hydrocarbon oil duty as well as the vehicle tax. There will be a VAT tax on fuel purchases. You may also see VAT tax on your import, depending on where you have imported the vehicle from. You will see a first time car registration fee on your registration payment to the DVLA when you buy a new or used car.
The United Kingdom requires you to have car insurance if you drive or own a vehicle. The type of insurance you elect to have is up to you, although you must have at least third party car insurance. Third party car insurance is the minimum government requirement, and is also known as liability insurance.
Third party insurance will only pay for damages to another person’s property, any injuries the other party might have sustained, or an incident in which the driver is found at fault. It will pay out in the event you cause an incident where there is damage or injury to the car and driver, or to their passengers. You will not be covered for your own vehicle. It does not cover theft or fire. It is the least expensive policy you can obtain in the UK. However, the costs of repairs to your own vehicle if you have an accident may be high enough to negate any savings you make.
Third Party Fire and Theft Insurance
You do also have the option of taking out third party fire and theft insurance. This provides you with more coverage than regular third party insurance. You still have the same level of cover as the regular policy, however you are now also covered for theft or fire, ensuring that if you suffer damage or loss you will be covered. Again, there are limitations to this type of policy. You will not have comprehensive cover, but that might be unimportant depending on the age of your car. It is important to consider all potential issues when purchasing car insurance in the UK.
Comprehensive Car Insurance
This is the third level of coverage for car insurance. As an expat you may be inclined to take out this insurance if you import a newer vehicle. Comprehensive insurance will provide cover for damage to your vehicle and other vehicles. It has a range of cover for fire, theft and accidents if you are at fault. Comprehensive cover can vary from company to company. It is important to compare the different policies under comprehensive cover to determine the best level of coverage. You want to have cover that fits your situation and needs. Some companies provide additional services such as breakdown cover.
Gaining Enough Cover
Recent studies have shown that UK drivers tend to be underinsured, which can cause financial problems after an accident. Vehicles are becoming more expensive to repair and associated costs are also rising. When you look for insurance cover in the United Kingdom, you want to make sure you are paying for services you will actually use, but also that you are fully covered.
In the event that the other driver is at fault but does not have enough cover, you may need to seek help from your insurance company for repairing the damage to your car. Online comparison tools will help you to find the right amount of cover for your car.
Drivers and Vehicle Licensing Agency (DVLA)
This agency is for registration in England, Wales, and Scotland of your vehicle.
Driver and Vehicle Agency (DVA)
This is the agency for vehicle registrations in Northern Ireland.
Expat Health Insurance Partners
Cigna has worked in international health insurance for more than 30 years. Today, Cigna has over 71 million customer relationships around the world. Looking after them is an international workforce of 31,000 people, plus a network of over 1 million hospitals, physicians, clinics and health and wellness specialists worldwide, meaning you have easy access to treatment.