It's illegal to drive with no car insurance. Without it you can't tax your vehicle, and it provides cover for you, other motorists and members of the public.

Most policies include an excess, which is the amount to be paid by the policyholder in the event of a claim. There's both a compulsory excess, imposed by the insurer, and a voluntary excess. The phrase 'total excess' combines these two factors and is the amount you pay in the event of a claim.

Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a mortgage, your lender most likely will require you to have home insurance coverage to protect your home in case of damage cause by unforeseen circumstances, such as fires or natural disasters.

Employers' liability insurance is the only aspect of business insurance that's a legal requirement, unless you have a loan or mortgage on commercial premises, then the lender will then insist on buildings cover as a minimum. However, having the right cover is crucial in protecting your business, staff, clients and the any third party. It's advisable to consider the options and take out appropriate cover for your needs.