Do I need Protected No Claims Bonus on my insurance policy?
For an extra premium, you can protect against losing your no claims bonus. This is usually available to policyholders with four or more years’ no claims bonus, who have proved they have a good driving record. This usually allows you to make two fault claims in a three to five year period without reducing your no claims bonus.
How are car insurance premiums calculated by insurers?
Your car insurance premium is calculated by determining various factors which include the type of car, where it’s kept, who drives it, what it’s used for and what cover you require.
As a general rule of thumb, smaller engine cars are cheaper to insure than larger engine cars, and prestige cars are more expensive as the parts to repair will cost more.
The older the car, the more discount it attracts for comprehensive insurance.
Car theft is higher in urban areas and consequently means your insurance premiums will be higher than for somebody living in a more rural area. The postcode where the car is kept is a rating factor so if it is not kept at your address you need to advise us.
What is an excess on a Car Insurance policy?
Excess is the amount that you agree to pay towards the damage to your vehicle. You should make sure you are aware of any applicable excess and policy limits your car insurance policy may have. You may have more than one excess amount, i.e. a glass claim may be subject to a different excess than if your car is stolen. There is always an excess for windscreen replacement claims and most insurance policies also have maximum limits the insurer will pay out in a claim. You need to check you would be able to afford the excess in the event of a claim, and that the maximum limit would be sufficient to cover your loss.
What does RTA mean and how does it affect Car Insurance?
RTA stands for Road Traffic Act which states that all motorists must be covered by car insurance in order to protect the driver from third party liability. It is an offence to drive your car or allow others to drive it without insurance.
Will I get the Driving Other Cars cover on my policy?
Many car insurance policies cover the policyholder while driving a car which belongs to someone else. Driving other cars may be on your policy irrespective of the cover; cover is restricted to third party only, even if you have a comprehensive policy for your own car. Accidental damage to the borrowed car will not be covered by your motor insurance.
What does Third Party Insurance cover?
Third Party Insurance policies usually cover:
– Liability for injuries to other people, including passengers
– Liability for damage to other people’s property
– Liability of passengers for accidents caused by them
– Liability arising from the use of a caravan or trailer whilst attached to the car
Third Party Fire and Theft policies usually cover the same as Third Party policies, but with cover for loss in the event of fire, theft or attempted theft of your vehicle.
What does Comprehensive Insurance cover?
Comprehensive Insurance usually covers:
– Liability of passengers for accidents caused by them
– Liability for injuries to other people, including passengers
– Liability for damage to other people’s property
– Liability arising from use of a caravan or trailer whilst attached to the car
– Fire damage and/or theft
– Accidental damage to your own car
– A personal accident benefit – certain amounts are paid in the event of the death or specific permanent disablement of the policyholder (and sometimes his or her spouse or family member)
– Medical expenses necessarily incurred, up to a stated limit
– Loss of or damage to personal effects in the car, up to a stated limit
Which convictions do I need to disclose for motor insurance?
The short answer here is – if in doubt, disclose it. Insurers know that there is a connection between the number of driving convictions a person may have and their likelihood of making a claim. So people with motoring convictions are likely to face higher car insurance premiums until their driving record improves. You should disclose ALL non-motoring convictions that fall inside the Rehabilitation of Offenders Act. However, spent convictions need not be disclosed under the Rehabilitation of Offenders Act 1974.
Why do I need car insurance?
Motor insurance protects you against liability in the event of any accidents you may be involved in. It is a legal requirement that any motor vehicle kept or used on the public highway has insurance for third party liability at the very least. It is an offense to drive your car or allow others to drive it without motor insurance.