There is now a wide variety of vehicle insurers in the UK, which offer a good selection of polices from the basic requirements to the more comprehensive. You can deal direct with the companies or use an insurance broker.
Ways to get a Quote
It’s the job of an insurance broker to do the ‘legwork’ on your behalf, offering choice of products that can be attached to the individual policy to suit your individual needs. You may wish to go online to do your own research, use the comparison sites that are available. There are plenty in the phonebook and you can use your bank, now even your supermarket.
The likely hood of the driver making a claim is based on certain criteria when pricing up the policy. This will probably include:
The details of the vehicle
The purpose and use of the vehicle
Where the vehicle is kept (overnight) IE on the road, in a garage etc
The age and occupations of the persons who will be driving the car
Driving licence convictions or penalty points
If you built up a no claims bonus and the length of time you have been driving
Any insurance claims (usually within the last 3 to 5 years)
It is in your interest to provide honest answers, as this may invalidate a claim in the future if you don’t!
The No Claims Bonus
If you don’t make a claim on your policy, you’re rewarded with a reduction in your premiums. The longer you don’t a make a claim, the bigger the reduction gets, this is what’s referred as the ‘no claims or discount bonus’. From getting the initial quote and then reducing it by the amount of bonus ‘earned’ this can be as much as 75%, and builds up, possibly after 3 to 5 years. You can carry this forward if you change insurance companies.
If you make a claim you may lose all or a part of the bonus, which will depend on the size and severity of the claim. Most policies will allow you cover your no claims bonus by an additional fee on top of your insurance premium or a reduced discount percentage. This may include 2 claims per year so it’s a big advantage. Remember it is the discounted amount that is protected and not your yearly renewal amount which may change and will also depend on your claims history.
This is an agreed amount, settled between yourself and insurer, that if you make a claim, you will pay. The amount can vary from £100 to £500, and in return for this, the insurer will reduce your overall yearly premium. Sometimes a compulsory excess will apply, this maybe where there is a second or inexperienced driver.
The policy you’ll receive comes in 3 parts. The certificate which will contain details of the vehicle to be insured, the named driver(s), uses of the vehicle IE Domestic and Pleasure, and the start and finish dates. This is a legal document and has to be produced when renewing you car tax, the police if required, or when involved in an accident.
The policy booklet, which contains the general policy details, terms and conditions.
The schedule provides specific details for your policy to include the amount of excess to be paid in the case of a claim. The amount of no-claims discount and which parts of the policy are applicable to you, for example fully comprehensive.
When you first insure the car you may receive an insurance cover note, this is only to cover you temporarily until you receive your policy certificate. Like with all documentation, check it over make sure its correct in case it should need renewing, Finally keep everything together and put in a safe place.
Buying insurance | How to make a claim | Driving Abroad | Uninsured Driving | Insurance explained
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