INSURANCE EXPLAINED AND THE OPTIONS
Insuring Your Vehicle
Before driving in a public place you are required to have insurance for the vehicle by law. Insurance is specifically designed to provide protection in the event of a accident or injury, to you the driver, and your passengers. There are additional levels of cover available from many insurers. The types and levels do vary from one provider to the other.
What are the Types
Third Party Insurance
This is usually the minimum and the cheapest type of cover provided. This type of protection guarantee’s that any person, including passengers or damage caused to property in the event of an accident which you are responsible for. This protection will not compensate for any costs which may be incurred by you as a result of the accident.
Third Party Fire and Theft Insurance
This is simply an add-on to the above policy, whereby you are also covered in case your vehicle is either stolen or damaged by fire.
An all-inclusive policy, covering not only third party, fire and theft but also covers you in the event of your vehicle being damaged in an accident. There are many bolt-on extra’s to include:
While your car is being repaired, and you are off the road, a courtesy/hire car is provided.
Legal expenses cover, to recuperate any insured loss which can also cover any excess
Roadside assistance, repair or recovery policies
Gap Insurance Cover
This can be taken out as a separate policy or as a useful add-on to the policy you are buying. So what is it and what does it do?
If you purchase a vehicle with a loan, and then unfortunately have an accident and your vehicle is ‘written off’. The vehicles retail value compared to the estimated value could be completely different. The write off value doesn’t take into account, depreciation or invoice value. For example you pay £15,000 for your vehicle with a £12,000 car loan. You have an accident and the insurance company pay’s out £7,000. So, you now have no vehicle and still owe the loan company £5000.
This is where Gap Insurance comes into play, in simple terms it pays out the outstanding amount but as mentioned above depending on what you require Gap Insurance can be used to cover the following :–
A refund of the depreciation
The invoice value of what you paid for the vehicle
Available for those customers who paid cash, took out a personal loan, a finance agreement, bought under a lease, or as contract hire
Is offered as an option for all new or used vehicles
Most loan amounts are covered
It can happen, but being involved in an accident that involves injury or damage to property, vehicles, people or animals whether serious or not means providing and receiving your details and that of the other driver (or drivers) that have been involved. Names, addresses, and telephone details, along with, registration numbers and insurance details if at hand.
If all the details are not forthcoming you are advised to report the accident to the police within 24 hours. Even if you do not intend to make a claim, your insurance company should be informed. If you don’t and you encounter a problem in the future, a potential future claim may be invalid.
If you get caught up in an accident where the driver has no insurance, this should be reported to the police and your insurance company, who will provide advice regarding a claim. An organization called the Motor Insurers Bureau (MIB) is there to help get you compensation as a victim of being in collision or hit and run by an uninsured driver.
If you wish to drive to the continent (European Union or EU), currently all UK policies provide the minimum amount of cover under European law. This includes the minimum amount of cover in the UK or whichever is the greater. This will not include damage to, or theft from your vehicle. Contact your current insurer in the first instance to see if they will provide you with like for like comprehensive cover for the period you will be away. If driving out of the EU Zone, a Green Card is required; this is to prove that you are at least covered by the minimal legal limit of the country being visited.
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