Car Race Systems

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. 

Specialised 4×4 Insurance
Insuring your 4×4 is likely to require you to compare specialist car insurance providers for the best deal for your circumstance.  Many car insurance companies do not provide 4×4 cover.  This is because the types of driving you are likely to do in a 4×4 are very different from regular cars: for instance, you can take it off road into rough terrain.  This increases the risk of damage or accidents.

Low Insurance Premium Deals
Some of the car insurance deals marketed towards the specialised 4×4 market include club discounts and limited mileage discounts.  Owners’ club insurance premiums are designed for 4×4 owners who pay annual fees towards their club membership.  Insurance costs are typically lower in such cases, as it means your vehicle is often driven in special circumstances alongside other enthusiasts.  Essentially, insurers calculate that there is less risk of accidental damage in the company of others who care a great deal about their 4×4.

Limited mileage discounts apply when a 4×4 is driven for only limited distances.  For many 4×4 owners, the appeal of their vehicle is not that it will take them everywhere, but specifically off road.  Off road driving is not usually performed over great distances.

Typical 4×4 Insurance Cover
Some of the most common types of insurance cover for 4×4 cars include imported 4×4 cover, which can be left hand drive models, bespoke Land Rover insurance policies, bespoke Jeep insurance policies and ex military 4×4 insurance policies.

Deciding on an appropriate insurance policy can be as difficult as the process of buying a new car.  Though it can be tempting to opt for the cheapest car insurance available, you may be left counting the cost further down the line as it may not cover everything you had expected.  There are a number of factors you should consider when shopping around for the best deal.  The insurance premium will be the amount you will pay for active coverage.

Comprehensive or Third Party

Comprehensive policies are the most common as they cover damage to you and your vehicle as well as others.  Third Party policies, on the other hand, only covers damage inflicted on other people and their vehicles.

Excess

Car insurance excess relates to the monetary amount you will pay if you make a claim on your policy.  This amount can differ dependent on the deal you sign up for and personal circumstances.  If you had an excess of £250, for example, and the claim was for £1000, you would cover the initial excess amount and the insurer the remaining £750.

No Claims Bonuses

You will be rewarded by your insurance company if you do not make a claim over a set period of time.  The premiums you will pay will also decrease the longer your ‘no claims’ policy remains intact.  It is possible to protect your no claims status by paying an extra premium to guard against any potential accidents.

License Points

If you have points on your license for speeding then you can expect to pay extra premiums.  In some cases you may not get an insurance policy at all if you are above a certain points threshold
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Courtesy Cars

Not all insurance companies offer the option of a courtesy car in their policies, but it may be a wise option to explore as you will save considerable costs if your car is ever out of service for an extended period of time.