It is legal requirement for all vehicles driven on public roads to have adequate insurance. In addition, you must carry the insurance certificate at all times to prove you are covered.
It is not advisable to under-insure, as insurance companies may refuse to settle such claims. If you take out a loan to purchase your car, comprehensive insurance is compulsory, as a form of security for the lender, who is joint owner for the duration of the loan.

There are three different kinds of cover:

Third Party only

• This is the basic minimum cover.
  
• This covers the legal liability of all authorized drivers against another person or persons (known as Third Parties) in the event of an accident when the third party is injured or killed, as well as for damage to their vehicles and property.
  
• It does not cover injuries suffered by the person insured nor damage to their own car.
  This is often the preferred option if your car is a few years old, or if you are taking out insurance for the first time, to keep premiums to the minimum.
  

Third Party, Fire and Theft

• This extends the basic cover described above to damage to your car by fire, lightning, explosion, theft or attempted theft.
• There is usually a compulsory excess restriction, which means you have to pay the first part of any claim.

Comprehensive:

• This cover goes further, and covers accidental damage to your own car.
• It will usually cover theft of personal possessions from your car and passenger liability, and there may be other benefits such as medical expenses cover and personal accident cover for your spouse.
• Some policies may have an accidental damage excess for cases such as young or inexperienced drivers.
• This is usually the preferred option for insurance of new cars, as the cost of vehicle replacement is high.
• You can sometimes volunteer to pay a higher first part of any claim (known as voluntary excess), which will reduce the premium you pay.