GUIDE TO CAR INSURANCE |
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If you have taken the time to ensure your car leathers and interiors look good then the last thing you want is for that care and attention to be wiped out by a car accident.
This is why having suitable car insurance, is so important. How does car insurance work? - Car insurance is a legal necessity in the UK and is designed to help drivers cover the cost of accident-related damages and injuries, depending on the level of cover they have in place. There are three levels to choose from: - Third party only: Covers liability for injuries to others, including passengers; along with damage to their property and liability while towing a caravan or trailer. - Third party fire and theft: As with third party only cover but with cover for your vehicle against theft, fire damage and damages obtained during an attempted theft. - Comprehensive: Third party fire and theft cover plus cover for loss or damage to your own vehicle after an accident, subject to policy exclusions. Cover varies widely between providers but typically incorporates windscreen cover, cover for personal effects, accidental damage cover and medical expenses. Remember that not all car insurance policies are the same and you should check the terms and conditions of each policy carefully before determining which deal is right for you. Think carefully about which cover options you need - for example, you may not need a courtesy car in the event of an accident if you already have access to a second vehicle. What else should you look for? - In addition to the level of cover you apply for, also consider the following when comparing policies: - Driving other vehicles: Some insurance companies will allow you to drive other vehicles in emergency situations as long as you have the owners' permission. - Excess levels: The excess is your contribution towards a claim. In most cases this will be divided into a compulsory excess set by the insurer and a voluntary excess which you agree to pay on top of the compulsory excess should a claim ever be necessary. By increasing your voluntary excess you may be able to lower your premiums but be careful to keep it at a level you can comfortably afford and be aware that setting the excess too high will negate the purpose of smaller claims. - Exclusions: These are circumstances in which you will not be covered and will be outlined in your policy documents. For example, you may not be covered to drive other vehicles if you are under the age of 25. - No-claims bonuses: These are effectively a reward for drivers that do not make claims and could reduce premiums by as much as 60 per cent after four or more years. Just bear in mind however, that making a claim will usually cut two years from your bonus, unless you have no-claims discount protection, and applies regardless of who is to blame for the accident unless your insurer is able to recoup all its costs from the other driver's insurance company. When should you make a car insurance claim? - If you have an accident or your car is stolen then you should inform your car insurance company as soon as possible regardless of whether you plan to make a claim or not. As making claims affects your no-claims bonus and there is usually an excess to pay, you may decide that you're better off arranging repairs without involving your insurance company. For example if your vehicle suffers a break-in and the thief damages your leathers while stealing something from your car then you may decide it's cheaper to arrange for a glass repair company to fix the broken window and for a leather repair and cleaning company to rectify the damage to the car's interior. However, in the case of severe damage or the involvement of a third party then a car insurance claim will usually be necessary. In this case, do not attempt to arrange any repairs without your provider's endorsement as it may have an approved repairer that it wishes to use. How can you keep car insurance premiums affordable? - Certainly, avoiding car insurance claims is one of the keys to keeping your premiums affordable, so if you can arrange for repairs such as leather restoration without relying on your provider then do so. Generally, reducing car insurance claims revolves around limiting the perceived risk of making a claim - i.e. the more likely you are to make a claim, the higher your premiums will be. Here are some tips: - Agree to a mileage limit: The fewer miles you drive, the less likely it is that an accident will occur. - Complete an advanced driving course: Consider taking an advanced driving course such as the Pass Plus or IAM as it may lower your premiums - check however, that the insurance savings will surpass the cost of the course. - Fit security devices: Install insurer-approved alarms, immobilisers and trackers. - Limit named drivers: Don't add inexperienced drivers to your policy as they may cause premiums to rise. - Park safely: Keep your car in a locked garage overnight. - Pay annually: Avoid monthly interest charges by paying premiums upfront. - Shop around: Take as thorough an overview of the market as possible before settling on the right car insurance deal for you. This can be done quickly and easily with a comparison website that can compare quotes from more than 120 insurers. |