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How To Guides Insurance Guide

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Below, is Quick Guide to UK Insurance Cover

Third Party Only

This cover is the legal requirement. This level of cover ensures that injury compensation is available other people (including your passengers) or damage to other peoples’ property resulting from an accident caused by you. It doesn’t cover any costs incurred by you as the result of an accident. So, if it’s your fault, you have to pay from your own pocket, the costs involved in repairing your vehicle.

Third Party Fire and Theft

This provides the same cover as Third Party Only and also insures you should your vehicle be damaged by fire or stolen.

Comprehensive

This provides the same cover as third party fire and theft. However, it also covers you should your vehicle be damaged in an accident. Many additions to this level of cover are available from insurance companies like:

• providing a courtesy car while your car is being repaired
• roadside recovery
• vehicle breakdown repairs in case of

What if You’re Involved in an Accident?

If you have an accident that causes damage or injury to any other person, vehicle, animal or property, there re a few things you have to give to anyone involved in the accident:

• give both your own and the vehicle owner’s name and address
• registration number of the vehicle

If you don’t give your details then you should report the accident to the police as soon as possible within 24 hours. You must also report the accident to your insurer, even if you’re not intending to make a claim.

What If You’re Involved in an Accident with an Uninsured Motorist?

Any accident with an uninsured driver should ALWAYS be reported to the police. You should also report any accident to your insurer. Additionally, the Motor Insurers’ Bureau (MIB) ensures that compensation is available to the innocent victims of uninsured drivers or hit and run (untraced) drivers.

UK Vehicle Insurance and Driving Overseas

All UK policies provide the minimum cover required by law in other European Union (EU) countries or the minimum cover required by UK law if that is greater. This cover doesn’t automatically include theft or damage to your car.

Most people want the same protection they have in the UK when travelling abroad, for example comprehensive or third party, fire and theft. This could, in addition to the legal minimum of third party liability cover, include accidental damage to, or theft of or from, your own vehicle, depending on the policy cover.

A number of insurers automatically provide this extended cover for a specified period and often without additional charge. It’s important, however, that you check with your insurer before you go abroad.

Buying Motor Insurance Tips

Questions you should ask when applying for insurance

Remember, the insurance quote you get is based on how likely you are to make a claim. Common questions asked will include:

• the vehicle details
• what the vehicle will be used for
• where the vehicle will be kept
• the ages and occupations of the people who will be driving the vehicle
• any penalty points on your licence or convictions for driving offences
• any no-claims bonus and how long you have been driving for
• any recent insurance claims

Once all your details have been taken, you’ll be offered a quote and, if you accept the quote you will be sent insurance documents in the post.

No-Claim Discount/Bonus

This is definitely the most talked about part of the insurance policy. The rules can often change from one insurance company to another. Make sure you get the right correct details from your insurer. Basically, a no-claim bonus a reduction in your premium (the amount you pay) in return for you not making a claim. That is it really.

Over a period of years in which the discount is earned (usually four or five), it can lead to as much as a 75 per cent reduction in the cost of your insurance. The no-claim bonus should stay with you even if you change insurers.

You may lose all or part of your discount if you make a claim and your insurer is unable to recover its outlay from someone else. Many insurers will allow you to protect your no-claim discount for an additional fee or for a slight reduction in the discount scale.

This means that even if you make, say, two claims in a three year period you’ll be able to keep your no-claim discount. Remember, this practice varies from company to company.

What is the Policy Excess?

This is an amount agreed between yourself and the insurer that you’ll pay if there’s a claim. Generally this varies between £100 and £250 and can often be negotiated. The more you are prepared to pay, the lower your overall insurance premium will be.

Three Insurance Documents You Must Have

There are three must have documents when you take out a policy of motor insurance, the certificate, the policy and the schedule. Don’t forget to check to see that the details are correct and to get them amended if they’re not, it may save a huge headache of you ever need to make a claim.

The Insurance Certificate

This contains details of the vehicle insured, the driver(s) named to use the vehicle, the use of the vehicle which is insured and the dates for which the policy is valid. This is the document that provides legal evidence of insurance cover and is required should an accident occur, when the vehicle needs to be taxed or if you’re asked to produce it by the police.

The Insurance Policy

This sets out in full the terms and conditions of the insurance cover you purchased.

The Insurance Schedule

This document gives you all the specific details to your policy like excesses, no-claim discount and which parts of the policy apply to you.

You may be given an insurance cover note when you first take out an insurance policy. The cover note acts as a certificate and temporary policy while the full documents are produced.