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Archive for the ‘Car Insurance’ Category

For anyone who may be wondering why he or she needs to pay out for insurance policies on vehicles that they perhaps never claim on should be aware that this is a legal requirement in the UK.  Car insurance to cover all drivers of a vehicle is compulsory and not having a valid policy can result in heavy fines and penalties.  In some cases, for particularly persistent offenders a jail sentence may also be imposed. 

Car insurance, although sometimes costly, particularly for those newer drivers without a no-claims bonus offers peace of mind for all drivers.  Not having any insurance cover, or the wrong level of cover could well prove to be very expensive in the long run.  Taking out the smallest policy possible will cover costs incurred to other’s vehicles or property and is the minimum legal requirement.  This policy is known as a third party policy.

A third party policy will not cover for damage done to holder’s own vehicle if it is found that the accident was the owner’s fault.  If it was the other driver’s fault then the other insurance company will cover the cost of damage and repair to the vehicle.  A third party fire and theft policy works in the same way, however it will pay out on damage to the policy holders vehicle if it is found to have been stolen and damaged, or if a fire has occurred.

The policy that offers the most cover is the fully comprehensive insurance policy.  This will cover for damage to the other party’s vehicle and to the policyholder’s vehicle if the third party does not have adequate insurance.  If it is found that the third party was at fault then the insurance policy will also cover legal costs in claiming back the damages from their insurance policy.

The Road Traffic Act of 1988 sets out the minimum level of insurance cover you must have before you are allowed to drive a car on the public highway. There are three levels of car insurance cover; comprehensive, ‘third party fire and theft’ and, the minimum level, ‘third party only’.

Fortunately, there are a great many companies offering car insurance in the United Kingdom. Some of these insurers act through insurance brokers, whose job is to offer advice about choosing car insurance that suits your individual situation. Of course, you can easily find your own car insurer by looking in the Yellow Pages or on the internet.

Car insurance premiums are based on the likelihood of the car driver making a claim, which means you will be asked to provide a good deal of information when applying. Amongst other items, you will need to give details about your car, what it will be used for, who will be driving it and whether they have any penalty points on their licence.

You will then be given a quote and, if you find it acceptable, you will receive the relevant documents, including the car insurance certificate, policy and schedule. When the documents arrive, it is very important that you check the details and, if there are mistakes, make sure they are corrected.

Your car insurance premiums will be reduced if you do not have to make a claim during the year. This could save you as much as 75 per cent on car insurance if you do not make a claim for several years. If you do make a claim you will lose your no-claims bonus, but it may be possible to protect it in return for an additional premium.

If you agree to contribute a given amount towards any claim you make, the cost of your car insurance premium will be reduced. This contribution is known as the ’policy excess’. The more excess you agree to pay, the less your car insurance premium will cost. If any of the named drivers have little experience of driving, the insurer will impose an excess on any claim made on their behalf.

When a vehicle is involved in an accident, there is almost always some damage that will have to be repaired. Depending on the severity of the accident, these repairs could be simple or complex.  No matter what the damage, it is important for drivers to find a qualified carshop to perform these repairs.  Finding a good repair shop is not something that should be too difficult.  In fact, most drivers already have a trusted repair shop they visit for routine maintenance.  If the repairs are being paid for by an insurance company, it may be required for the driver to take the vehicle to specific car shops that are associated with that insurance company.  Even when this is the case, there are hundreds of locations that can repair a vehicle and have it operating safely once again. 

Following an accident, the first thing that must be done is contact the insurance company.  They will send someone out to assess the damage to the vehicle.  This assessment will provide a monetary amount for the repairs.  Most insurance companies will not cover expenses that exceed the assessment.

After this is done, it is up to the owner to locate a place to perform the repairs.  It is possible to find a carshop that will offer a loan car while the vehicle is being repaired.  If there is extensive damage, repairs may take a long time to complete, so having another vehicle available is of great benefit to drivers.

While car insurance may not be a favourite topic for drivers, it is a major expense that is vital to owning a car. With more and more cars on the road as the years have gone on, the potential for accidents has increased exponentially. Insurance ensures that if it is you who gets in an accident, you are covered against damage and injury. Fully comprehensive car insurance will make certain that, no matter who is in the wrong, any damages done to your vehicle or your person will be covered financially.

As well as the usual insurance companies, there are specialist brokers who provide only for women or specialised vehicles such as kit cars. Women typically get cheaper car insurance than men, as they have been proved statistically to have fewer accidents causing injury, death or damage to vehicles. Women drivers are found to be more careful drivers, rarely becoming reckless or drinking before driving.

Just as women get cheaper insurance, drivers over the age of 25 have a lower premium than young drivers. For drivers under 25, it is important to think carefully about what kind of car they want to drive, as sports or modified cars, such as cars with added spoilers, lights or modified suspension, will result in higher premiums. Younger drivers can be seen by insurance companies as being reckless, and one way to prove them wrong is to take a Pass Plus course or an Advanced Driving Test, which shows that you are driving responsibly.

Car supermarkets and websites such as car giant Autotrader can be useful tools in establishing the cheapest car insurance to suit your needs but in all cases car owners in the UK are legally obliged to have insurance cover for their vehicles.  There are currently three levels of available cover – Third Party Only (TPO), Third Party Fire and Theft (TPFT) and Fully Comprehensive. 

TPO is the minimum form of car insurance required under UK law.  This type of insurance policy only covers the costs of others (third parties) and offers no protection for your own vehicle.  What this means is that if you are at fault for an accident, the policy will pay out for damages to any other vehicles involved, but not for your own.

TPFT cover offers the same type of protection and payments as TPO, but also covers your own vehicle in the case of fire damage or if it is stolen.  However, it still offers no protection for your own vehicle if you at fault for an accident.

Fully comprehensive offers the same cover as TPFT but also covers you own vehicle if you are at fault for an accident.

It is important to weigh up each option, and remember that cheaper options like TP and TPFT may prove much more costly in the long run than being fully comprehensive due to repairs on your own vehicle.  You should consider the type of driving you do and ensure that your policy covers as many eventualities as possible.

Insuring your car is not only a legal requirement, it is also essential for peace of mind when driving and owning a vehicle.  Car insurance is there to protect you, the driver, and whoever else may be involved in any accidents that occur involving to your car.  It is important to take out insurance that meets your needs but is also affordable.  You can do this by making sure that you research the various companies that offer insurance and find out what their terms and conditions entail. 

Also, find out what excess you will need to pay when you make a claim and ensure that you will be able to realistically afford to pay this if an accident should occur.  The excess is the amount you have to pay towards the costs of a claim if the accident is your fault or if you cannot find who is responsible for damage to your car.  The two most important financial figures are the excess and the premium.  The premium is how much you pay on a yearly (or monthly) basis to insure your car.  The longer you have been driving without claiming on the insurance, the less you should expect your premium to be.  Therefore, it is a good idea to reassess your premium on a regular basis.  Every time your insurance is due for renewal, get a quote from your current insurer, then find out what other companies are offering for the same terms.  Always make sure you are paying the best possible price for the insurance you need.

For many people, sorting out car insurance is the worst part of buying a new car.  High car insurance rates can often make upgrading to a higher performing car prohibitively expensive, and usually force young drivers into less powerful cars than they would ideally drive.  Still, car insurance is a vital part of British motoring and by law every driver must be insured to drive their car.  The penalties for not insuring vehicles are steep, with drivers found to be driving without car insurance liable to fines, points being placed on their licence, and even having their cars towed away and, if not claimed, crushed. 

The good news for drivers, though, is that thanks to a bustling car insurance marketplace, it has never been easier to find comprehensive and cheap car insurance.  Online price comparison sites have made it easier than ever for drivers to directly compare insurance quotes against one another using the same criteria, meaning that finding a good car insurance deal is now much quicker and easier than contacting multiple brokers directly.  No-claims bonuses are also quick to accumulate these days, and are often ‘protected’ after only a few years, meaning drivers are not punished for a single, out of character accident. 

There are also a number of specialist insurers in the market today who offer competitive insurance to ‘at risk’ drivers such as those who have been convicted of a driving offence, young drivers or those with a medical condition that may affect their driving. 

Insurance

You have found a used car you like and want to buy it.  As recommended, you decide to take it for a test drive, but remember you need to be insured.  Car Dealers will have cover specifically for these occasions but you may not be covered if you are buying a car from a private seller.  Make sure your own car insurance covers you driving other cars before you try the car, otherwise you could end up in trouble if anything goes wrong during the test drive.

Paying for the Car

Before handing over any form of payment make sure you know exactly what is included in the price.  Consider drafting up a contract for both you and the seller, so that you both completely agree on all aspects of the sale.  Make sure you are clear on the collection or delivery of the motor.

Consider a Professional Opinion

If you are having any doubts about the car you want to buy, consider paying for a car history check.  For just £20 this will tell you if the car is subject to a finance agreement, if it has been written off, recorded as stolen, has any mileage discrepancies or is at high risk of fraud.  You could also have a mechanic check the car over for any structural or internal damage that is likely to cause you problems in the future.

When you own a car you must insure it before it can be driven on the public highway.  There are three different types of insurance to choose from, third party, TPFT (third party fire and theft), and Comprehensive insurance, which provides the highest level of cover.  The value of your car, among other factors, will help determine the type you should buy.

If you have an accident, third party insurance is intended to cover the people you injure or property you damage, including other vehicles.  You are not covered if you are injured or your vehicle is damaged.  This is the cheapest form of insurance available and is the minimum required by law.  It is designed to protect others even if you decide not to insure yourself or your vehicle.

TPFT is similar to third party insurance, but provides additional cover for the insured.  If you have this type of policy, third parties will be covered for accidents you are involved in.  The added cover is for your car and protects you against the theft of the vehicle or it being damaged by fire.  Many owners take out third party insurance cover when they purchase second hand cars for cash.  If you are paying for it by way of a loan, you will usually need at least TPFT and possibly even comprehensive insurance.

Full cover, known as comprehensive car insurance, protects you against any damage that occurs to you or your vehicle as well as anyone in your car or in other cars involved in an accident.  If you own a new or more expensive second-hand vehicle, it makes sense to protect your investment by purchasing comprehensive insurance.

The world of car insurance carries with it its own mythology and set of misunderstandings, misinterpretations and downright falsehoods. Here are a few classic examples of car insurance myths.

The Cost of Your Car Colour

The strange urban myth that the colour of your car will somehow affect the price of your car insurance is just that – a myth. While the body type, engine, make, model and year of manufacture of your car may well play a factor in determining the cost of your motor vehicle, its colour is never a factor.

I Wasn’t Driving

The perception that if you were not driving your car when it is involved in an accident – say, if you had loaned it to a friend – then it will not be up to your insurance to cover the damage bill is another false belief. If the vehicle is yours, normally so too is the responsibility for it.  The incident will also go on your insurance record, possibly affecting the cost of future premiums. In other words – be careful who you loan your car to.

Never Happened, Never Will

Some people believe that because they have never been involved in a car accident, this means they do not need car insurance. This is a misconception of truly spectacular proportions. No one, no matter how good a driver they may be, can be one hundred percent certain of never having an accident, and the cost of one occurring with no insurance in place can be astronomical. It is also actually illegal to not have some form of insurance protection.