The UK government made it illegal to drive a car on public roads back in 1930. Since then the law in this respect has changed very little. Car insurance is still a necessity and the US of course has a similar law. Nearly every state in the US has made insurance mandatory. In the UK a person must carry third party insurance at the very least. Third party will cover you if you cause an injury. It pays for the damages you caused to both the other vehicle and to the other people in the accident.
Although it is not mandatory to carry third party, fire and theft, it is a very good idea. This is especially true of a very nice car which could be chosen by thieves. Older model cars that are a fire hazard may also want to have coverage on them. With third party fire and theft you get the same third party protection along with fire and theft protection. You do not have to worry if your vehicle is stolen, your insurance company will pay you the replacement value. The same is true if your car catches fire.
The most expensive insurance to carry is comprehensive. Nearly everything is covered with this insurance. Your damages are even included. You can cause the accident and your insurance company will pay to repair your vehicle. Although it is more expensive than third party it is usually worth the added price if you can afford it. Most of the time, if you are paying installments on your car, the bank will require you to carry comprehensive insurance. Something else that uses comprehensive cover is short term car insurance. This insurance is made to carry insurance for a short period of time. You can most commonly get the insurance for between one and 28 days.
It is perfect to drive away a newly bought car or when you borrow a car from a friend. Maybe you need to use a van for a couple of days to move a house. When you buy short term car insurance you will be protected in case of an accident without having to spend a lot of money. Even though the cover is usually comprehensive it is cheaper than changing your annual policy to cover the borrowed car.
Another nice thing about short term car insurance is the fact that you can prevent any claims going on your annual policy and ruining the money you save with a no claims discount. This discount can add up to hundreds of pounds. If you have had your no claims discount in place for five years or more you stand to save 65% of your bill. Why chance ruining that savings by taking unnecessary chances.
When someone wants to borrow your car make sure to purchase short term car insurance and keep your no claims discount intact. Perhaps family is coming to town for a visit and they need to use your vehicle while they are here. Use one day insurance to cover them and your vehicle. It could add up to a big savings when you consider the no claims discount.