Your Guide To Car Insurance Cover
When it comes to car insurance cover, it will mainly depend on the policy type that you have. Typically, this coverage will cover a vehicle, the damages that you may cause to another vehicle, the property of the other driver along with other motorists involved in an accident.
However, motor policies can also include, or you can extend the policy to include coverage for numerous other items. These involve breakdown assistance, towing services, medical expenses and even personal belongings.
The Main Motor Insurance Types
1. Third Party
Third Party policies are classified as the lowest levels of cover. This will protect you from damages that you have caused or from a passenger to another driver. This is inclusive of damages caused to vehicles and the drivers along with accidental damage which is caused to walls and lampposts. Third Party does not include cover for your vehicle, which means you will be liable for any costs involved for damages to yourself or your car.
2. Third Party, Fire, And Theft
The Third Party, Fire, and Theft includes coverage for everything in Third Party Cover, along with paying for the replacement or repairs for your car when it is destroyed or damaged by a fire or stolen.
3. Comprehensive Car Insurance Cover
This option offers the most extensive coverage level, which will include everything in the Third Party and Third Party, Fire, and Theft, but also offers wider damage coverage when it comes to your car. A few of these options may also offer insurance for driving other people’s vehicles and in some cases the hire cars. However, this is usually only for the Third-Party level.
How Is Your Premium Worked Out?
The vehicle insurers set an amount that you are required to pay according to various factors. This can involve your driver record, the car itself and your own personal circumstances.
An example of this is when you are a mature driver with many years of driving experience and you drive a sensible and safe car, and you reside in a relatively safe location, the premium you are offered will be cheaper.
However, when you are still regarded as an inexperienced and young driver and you drive a high-performance vehicle, costs associated with your policy will be higher.
What You Need To Know About Excess
An excess is an amount you will be required to pay towards claims that you make on the policy. An example of this may include when your claim amount is worth £500, and the excess amount is £100, your provider will only pay out £400.
Most of the motor vehicle insurers offer two excess types. This is associated with a compulsory excess that is set and cannot be modified. The second type is known as the voluntary excess, where you can decide on the amount.
It is important to set the voluntary option with care. If you think you are able to contribute a larger amount towards claims, then the insurance company might offer you with a lowered premium as a reward. However, this can result in making claims on the cover a very expensive exercise.
Are You Covered To Drive Overseas?
When driving your own vehicle around the EU, your car insurance cover will provide you with coverage automatically to match up to minimum legal requirements in the country that you drive in. However, in most cases, this usually only includes the basic Third-Party insurance. If you own comprehensive cover, then the insurers might extend the policy over a set time frame at this same level.
This is known as a free allowance period which will vary from one company that offers motor vehicle insurance to the next, from long weekends to an entire year’s worth. The more common offer includes a 60 to 90-day period. As this time frame elapses, the cover will revert back to a basic legal-level.
There are a few companies that allow for extensions on the allowance periods. This is usually possible when taking the policy out, at a typical price of £20, in some cases more. On the other hand, you can always contact the vehicle insurers after you have purchased your cover to ask for an extension.
What You Need To Know About A No-Claims Bonus
The term no-claims bonus refers to discounts that the insurer offers their policyholders when they remain claim free over a specified time-frame. Dependent on who your car is insured with, each year that you do not claim can result in increased discounts.
This bonus immediately falls away or is cut when you need to claim. However, some motor insurers may decrease the amount of the bonus which may include the claims whereby the accident was not your fault.
There is a way to reduce the impact of your claims on the bonus when you pay in an additional amount in order to protect it. With the no claims bonus protection, there will be a set number for the claims which are regarded as exempt from having an effect on the discount. For example, a maximum number of 2 to 3 claims in a 3-year period is usually common.
This is the type of protection which guards you against losing your discount altogether resulting from claims. But, it is important to consider that the premium may still be raised according to the discount that it was applied to. What this ultimately means is that while you might save a bit of money, the protection is not a guarantee that the premiums that you are paying will not increase when you claim.
Are You Able To Drive Other Cars Under Your Coverage?
Certain comprehensive car insurance cover allows the driver to drive the vehicles of family members and friends and may also allow the driver to drive a hire car. The cover for driving other cars in most instances only offers Third Party coverage. With most of the policies, you also have the option to add additional drivers, which is called a named driver. This means that these named people will also be covered when they use your vehicle.
Learn more about this at: https://www.insurethebox.com/driving-other-cars-what-do-you-need-to-know/
Tips On How To Keep Your Premiums Low
There are a few ways you can quickly lower your premiums over and above extensive research on the different insurance providers:
– Mileage limit
The overall miles that you travel every year is limited to the pre-agreed maximum.
– Voluntary excess
This option will mean you will be liable for paying an additional amount over and above the set amount of the basic-excess associated with most of the policies when you are involved in an accident. The exchange for this commitment which is regarded as risky means you can enjoy paying lower premiums every month.
– Increase your security
Another effective way to lower your current premium is to install a security device like a tracking system, steering-wheel lock or an immobiliser.
– Parking measures
If you have a garage where you live, make sure you park your car inside a locked garage every night, this is one of the common measures known for lowering the amount you pay for the cover every month. If you don’t have a garage, keep your car parked on your driveway behind a locked gate every night.
– Take A Driving Course
If you are serious about lowering the costs of your motor vehicle insurance coverage, you may want to consider a Pass Plus training course. This course was designed and set out by the DSA (Driving Standards Agency) . If you manage to complete and pass the course you will be awarded a Pass Plus certificate that enables you to request for a discount on your insurance.