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General questions about insurance answered

Oct 20, 2016 | Insurance

bigstock people in the form of a car 88578575

Take the mystery out of car insurance with our beginners’ guide, then compare policies and affordable quotes to find the appropriate deal for you.
Key points
• Insurance is a legal requirement
• You Are accountable for answering any questions regarding your use seriously
• You must advise your insurer of changes in requirements or condition
Car insurance cash-saving tricks
Finding the right car insurance policy can look quite daunting, but we have some advice to help ensure it is simple.

Car insurance is a legal requirement
The only exception would be if the vehicle is registered as off road with a Statutory Off Road Notice (SORN).

Filling in your application
You are accountable for answering any questions concerning your application honestly. You make, if the advice is found to be wrong it could invalidate your insurance and your insurer may not pay out for any claims.
Always make sure the policy features and you’re applying for has the appropriate level of cover which you need.

Factors influencing your vehicle insurance premium
When computing your auto insurance premium insurers will consider numerous factors. These will comprise:
Vehicle type: If you’ve got an expensive car or a high-performance vehicle, you’ll may need to pay more for your premium and probably be in a high insurance group.
Age: Younger drivers will usually must pay more for insurance, as mathematically they are more likely to make a claim.
Occupation: Unique jobs could increase premiums, such as journalists or chefs.
How frequently you use when you travel and your car, your mileage could affect how much you pay. Travelling within busy peak times can bump up your premium, also.
Driving history: Prior convictions can affect the cost of your insurance.
Voluntary surplus:
Sorts of policy
• Third party just
• Third party, fire and theft
• All-Inclusive
• Telematics
Where you reside: If your home is in a location where vehicle offense that is statistically is high, this could have an impact on your insurance.
Types of coverage
There are four main different kinds of car insurance:
Telematics coverages have made great strides into the marketplace in recent years, using mobile phone program or a black box to compute your premium based on nature and the standard of your driving.
Third party just is the minimal level cover required by law in the united kingdom. It covers:
• Accountability for harm to others (including passengers)
• Damage to third party property
• Liability whilst towing a caravan or trailer

Third party, fire and theft (TPFT)
For any changes that you want to make to your coverage, such as your address or to add another driver, you must tell your insurance company
Theft, fire and third party covers everything that third party does, but also:
• Theft of vehicle
• Damage to your car caused during thieving

Fully Comprehensive
A comprehensive coverage will provide you with the most extensive amount of cover, including everything covered by third party, fire and theft, and usually:
• Loss or damage to your vehicle
• Inadvertent damage
• Medical expenses
Some insurance companies offer cheaper policies that provide less protection, known as ‘stripped down’ policies. For instance, they may have taken off windscreen cover or reduced what you can claim for personal effects – so always check your policy documents to ensure you have the cover you need.
Coverage exclusions
Most car insurance policies will have crucial exclusions that will be summarized in your policy documents. Consistently make sure you’ve completely read what you’re not covered for prior to selecting your policy.
A surplus is what you’re liable to pay towards a claim. There are two sorts, compulsory and voluntary.
Sorts of excess
• Compulsory
• Voluntary
Compulsory surplus
• Set by your insurance company
• Depends on the details you’ve supplied your insurance company with when you took out your coverage
• Higher excesses are most likely on, or on policies with youthful motorists high-value automobiles
Voluntary surplus
• Sum you select to pay towards the expense of a claim
• Can help to reduce the price of your insurance
• Paid on top of any compulsory surplus you’ve
A no claims bonus is a compensation for those who do not make a claim on their coverage.
Note that it’s a ‘no claim’ bonus, not a ‘no blame’ bonus, so whether an accident is your fault or not when you make a claim, it’s going to change your no claims bonus, unless your insurance company recovers their costs from the other driver’s insurance company.
Once you’ve taken out an insurance policy, your insurer should send you or give you access to:
• A certification of insurance, or a cover note that is a temporary certificate – cover notes will provide the same protection as a certification to you, but normally only for a limited interval
• A program or policy file – this sets out the full terms and conditions of your coverage
• A coverage pamphlet (or they will tell you where to access one) – tells you precisely what your policy covers and what to do if you have to contact your insurance company
Don’t forget to keep your documents in a safe location where you can access them easily.
For any changes that you want to add another driver or to make to your policy, like your address, you must advise your insurance company. This is significant because if your advice is untrue it could make any claims invalid.
You might be charged an administration fee by the insurance company for changes which you wish to make.
Also recall your premium may change determined by the details you amend.

Before driving another car you will need to read your policy records. Some will permit it but others won’t take care. If your coverage permits you to drive another vehicle, the following generally applies:
• You will not be covered for any damage to the car you are driving
• The automobile must now be insured
• You need the motorist’s consent
• You can just be covered for automobiles that do not belong to you, or vehicles not hired under a hire purchase agreement to you
• It Is for emergency cover use only, not for day-to-day use
In the event your car is stolen or that you’ve got an accident, it is critical that you simply tell your insurance company away. This also applies if you’ve had an injury but aren’t making a claim.
Insurers will then require details of your claim. Your car needs fixing and if you’ve got comprehensive cover, your insurance company can supply you with approved repairers in your area and arrange for it to be fixed.
Uninsured motorists
The Motor Insurers’ Bureau was set up in 1946 to provide a method of compensating the victims of uninsured or untraced motorists.
You may be charged if you cancel your coverage before it’s finished
All motor insurance companies must be members of the Motor Insurers’ Bureau and provide to its backing.
The Bureau has a Motor Insurance Database which helps identify uninsured motorists.
The authorities have access to the database so they can carry out on the spot checks on motorists to support they have valid and current insurance.
When an untraced or uninsured driver injures a third party or damages their property, the third party should receive compensation from the Motor Insurers’ Bureau.
If a car is stolen and the auto thief damages property or injures someone, these costs are covered by the insurance company for the car.
Cancelling a policy
You may well be charged if you cancel your policy before it has finished. The charge could be made up of a a percentage of your premium and a cancellation fee.
Cancellation rates can generally be seen in your policy booklet. Remember that you simply will not be competent to drive your car until you take out a new policy.

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