What Is Car Insurance?
Do I Have to Buy Car Insurance?
What Is Third Party Car Insurance?
What Is Third Party Fire & Theft Car Insurane
What Is Comprehensive Car Insurance
What Is Specialized Car Insurance?
What Is Supplementary Car Insurance?
How Much Is The Cost Of Car Insurance?
How To Cutting The Insurance Cost?
What Can Be Covered By Car Insurance?
What Is Voluntary Excess?
What Is No Claims Discount (NCD)?
What Is Excluded In Car Insurance As Exclusions?
What Is Schedule?
Can I Make Claims?
What Is The Main Claim Procedure?
How to Make Complaints?

What Is Car Insurance?
Car insurance is protection against loss of personal injury and belongs caused by car accident. Car insurance is a contract between you and your insurance company to specify right and obligation of both parties in the event of a car accident.
Why Do I Have to Buy Car Insurance?
Car insurance in the UK is compulsory. It is illegal to drive any motor vehicle on a public road without insurance. There are three main Types of Car Insurance: Third Party, Third-Party Fire and Theft, Compressive Insurance. The minimum cover required by law is 'Third Party' insurance.
What is Third Party Car Insurance?
Third party insurance is the minimum cover required by law. It is the most basic type of car insurance. It covers any damage to people or objects involved in an accident, not including you and your car. Your passengers are protected and you are covered for any claims against you as a result of an accident, if it is deemed to have been your fault. Third party insurance also covers any damage to other people or cars resulting from a caravan or trailer (which was attached to your car), but will not cover any damage to the caravan or trailer itself.
The total amount of cover you receive is different between insurers, but it is typically around twenty million pounds, often with extra money available to pay for third party legal fees.
What is Third Party Fire & Theft Car Insurance?
Third party fire and theft insurance provides a fair level of cover. It insures you against damage that you or any of your passengers cause to property (including vehicles) or people in a car accident. It does not cover injury to you or damage to your car, except if your car is stolen or damaged by fire. This insurance also covers any damage that was caused to people or property by a caravan or trailer attached to your car, but will not usually cover any damage to the caravan or trailer itself.
Third party fire and theft insurance is a favorable choice for cost-conscious drivers, offering a good balance between cover and price. Third party fire and theft ensures that you have met your legal requirement to insure your vehicle, in addition to covering your car in the event that it is stolen, damaged or destroyed by theft or fire. It does not cover any injury you may sustain or any damage to your car that is not a result of theft or fire. It will also not cover any possessions you have in your car at the time of the theft or fire, although some policies may provide cover for your car radio, because this is one of the reasons why a thief might attempt to gain access to your car.
What is Fully Comprehensive Car Insurance?
Fully comprehensive car insurance covers almost every potential claim: it covers any damage or injury that you or any of your passengers cause to property and/or persons involved in an accident. In contrast to third party only and third party fire and theft, this policy covers any damage to your car, and will often cover injury to you. It also covers any damage caused by a caravan or trailer whilst attached to your car, but not damage to the caravan or trailer itself.
Although fully comprehensive insurance is the most expensive type of car insurance, often costing between fifteen and twenty-five percent more than third party fire and theft insurance, it does protect your car and could therefore save you thousands of pounds on repairs as well as compensate you if your car is 'written off'.
What Is Specialized Car Insurance?
The car insurance market is full of high competition; there are thousands of drivers on Britain's roads. In order to attract customers, insurance companies aim to make their policies more appealing than those of other providers by cutting prices and offering specific benefits. Policies will always be a variation on Third Party, Third Party Fire and Theft or Comprehensive insurance policies, but the specific terms of the policy can differ, and there may be specific customer benefits, such as personal possession cover.
What Is Supplementary Car Insurance?
Besides the three main types of car insurance, there are supplementary optional insurance available. Breakdown Cover, Motor Legal Protection and/or Personal Accident Benefit insurance.
Breakdown cover offers you with help in case that your car breaks down. Motor Legal Protection offers cover certain legal costs you may incur as a result of driving, whilst Personal Accident Benefit provides extra cover if you or your spouse are injured in an accident. Supplementary insurance is not compulsory under UK law. Nonetheless, supplementary insurance can help to provide you with peace of mind when driving on UK roads.
How Much Is The Cost Of Car Insurance?
There are many car insurance companies in the UK, but they all work based on one basic principal: risk management. They have to balance the cost of their insurance policies with the total amount they will pay out as a result of claims. They also need to make a reasonable profit to enable them to survive and grow as a business.
In order to assess this risk, your car insurance provider will consider many factors, for example, your age and gender. You will have to pay a premium to the insurance company in exchange for cover. It can be an annual or monthly payment. Since each insurer will tend to consider different factors as being the most indicative of risk, this premium is never 'fixed'. You can compare many car insurance providers quickly and efficiently through internet to shop around for the best deal.
How To Cutting The Insurance Cost?
Comparing insurance providers to get a best deal is the first step. The next step is to take advantage of a No Claims Discount (NCD). NCD rewards your good driving record with reductions in your premium of up to 75 %. You can further reduce the cost of car insurance by making use of voluntary excess; increasing the amount of any claim you agree to pay yourself. In return for this agreement, your insurer reduces your premium. Younger drivers are automatically classed as high-risk. They can take the Pass-Plus scheme, which may be able to offer discounts of up to 20 – 30 % on their premium. Pass-Plus is an advanced driving training scheme designed to produce confident and safe drivers.
What Can Be Covered By Car Insurance?
Car insurance can cover a range of liabilities: your car, yourself, your passengers, the general public and their property. If you wish to drive abroad, then all UK policies will insure you at least at the minimum legal level required in that country. However, you should ensure that you make adequate preparations for driving abroad; certain aspects, such as extending your cover, must be considered to avoid any nasty surprises later on.
What Is Voluntary Excess?
The 'excess' is the part of a claim that you pay yourself. For the average, experienced driver, this can be as little as fifty pounds, but for younger drivers the excess can be as much as five hundred pounds. The excess effectively dissuades you from claiming on your insurance for every scratch or bump you may have, since you would pay for a certain amount of the repair in any case.
In order to reduce your premium you can pay a 'voluntary' excess. This essentially increases the amount of any claim that you agree to pay yourself: you agree to pay more than the mandatory excess. As the cost of a claim will be reduced for your insurer, your premium is also reduced. If you are considered high-risk by your insurer, offering to pay a large voluntary excess can reduce your premiums.
What Is No Claims Discount (NCD)?
A no claims discount (NCD) entitles you to reduce your premium: you earn the reduction if you did not make a claim on your car insurance in the previous year. Most insurers will allow you to accumulate up to five years NCD, and gain a greater reduction for each year you earn the discount. You do not generally receive any further reduction in your premium after building up five years' no claims. However, a handful of insurance providers are now offering up to nine years NCD.
Typically the discount is around thirty percent if you collect one year of no-claims, rising to sixty-five percent after five years. A few insurers also offer a seventy-five percent reduction for between nine and eleven years' NCD.
What Is Excluded In Car Insurance As Exclusions?
There are certain things that a car insurance policy would never cover, which are known as the 'exclusions'. Generally, there are two 'types' of exclusion; General Exclusions and Own Damage Exclusions. The first includes such things as driving your car for purposes other than those allowed in your policy schedule, whilst the latter will include such things as wear, tear and depreciation.
What Is Schedule?
The schedule is a document which shows the level of cover you have purchased, and refers to the appropriate sections of the policy booklet to illustrate this level of cover. You must read the schedule in conjunction with the policy booklet to ensure that you understand the full terms and conditions of your insurance.
Can I Make Claims?
If you are driving legally, with a valid driving license and car insurance, you can claim at any time as long as your policy is valid.
There are certain duties you must take if you are involved in a road traffic accident, such as swapping contact and insurance details with the other driver(s). It may not be immediately apparent who is to blame, but in any case you should never admit responsibility without first speaking to your insurer. If the accident was the fault of a third party, you can make your claim against them. They will usually then refer the claim to their insurance provider. If they are uninsured or untraceable, the Motor Insurers' Bureau may be able to help recover your costs. There are certain procedures your insurer will expect you to follow before they process the claim.
A claim costs not only money but also time and effort. You may have to pay legal fees to solicitors who will help process your case, and you will often have to speak to your insurer several times to clarify the details of the claim.
There are certain terms and conditions you should bear in mind: your insurer can reject your claim if you do not adhere to them. For example, you must give your insurance provider accurate information: if you tell them that your car is parked in a garage every night and it is subsequently stolen overnight from your driveway, you may not be entitled to claim.
What is The Claim Procedure?
Most insurers will follow a certain procedure in the event of a claim. There are three main stages to a claim: making the claim, managing the claim and judging the claim.
a. Making the Claim
Your insurer's claims helpline number is printed in your car insurance policy booklet. You must inform your insurer of every accident you have in a couple of days, even if you do not wish to make a claim. If you do wish to proceed with a claim, you should provide them with the following information: Your name, address and contact phone number(s);Personal details to confirm your identity; Policy number; Any convictions recorded on your driving license ;The type and age of your vehicle, plus a description of any damage it sustained ;Full details of the incident – including where, when, how it happened, and details of who was involved ;Your opinion on who was at fault, if relevant .
You may find that making the claim by telephone is much easier than filling out complicated and lengthy forms.
b. Managing the Claim
Once you have made a claim, it is up to your insurer to establish who is responsible for the accident, and therefore whether or not they will have to 'indemnify' you. Indemnify is insurance jargon which essentially means that they will cover any costs for which you may be liable. Ultimately, they will determine whether your insurance will pay, or another driver's.
If you have fully comprehensive insurance and your insurer has decided that they will pay out, then your claim is first handed to the engineering department. A mechanic hired by your insurer will examine the car to see whether the damage is consistent with the accident report before authorizing further action. This action will either be repair of your car, or a declaration that it is 'written-off'. A 'write-off' is a vehicle for which repairs are no longer a reasonable financial option.
c. Judging the Claim
Once your car is repaired, any costs involved should be paid by your insurer, minus the excess which is stated on your schedule. The excess is the amount you are required to pay towards any repairs or compensation you may receive as a result of a claim. If your car is repaired to a higher standard than it was before the accident, you will also have to pay for that part of the repair. Your car is only returned to you once both these charges have been paid.
If your car has been 'written-off', the pay-out you receive will be based on an estimate of its market value before the accident took place.
How To Make Complaints?
If you believe your policy was mis-sold, or any other differences in opinion arise between you and your car insurance provider, you may wish to make a complaint:
Make the complaint to your insurer first: they will publish a complaints procedure on their website and in your policy documentation. Their aim should be to investigate your complaint thoroughly. On completion of the investigation they should write to you with the outcome and, where applicable, the nature and terms of any compensation to which you are entitled. If their investigation, for any reason, is not resolved within four weeks, they will contact you with reasons for the delay, and an expected date for the decision.
If you are unhappy with their reply, you can contact the Financial Ombudsman Service (FOS) or contact an independent financial advisor. If using the FOS, the complaint must be made within six months of the final response from your provider.
If you feel that there were unfair contract terms, you can refer your case to the Financial Services Authority (FSA) or the Office of Fair Trading (OFT). The FSA do not have the authority to refund any money lost due to unfair contract terms, but they can appeal to your insurer on your behalf.
The following is a list of organizations that can be contacted regarding complaints and loss of money due to your insurer's handling of your policy:
• The Citizens Bureau(CAB): citizenadvice.org.uk
• The Financial Services Authority (FSA): moneymadeclear.fsa.gov.uk
• The Financial Services Compensation Scheme (FSCS): fscs.org.uk
• Financial Ombudsman Service (FOS): financial-ombudsman.org.uk
• The Personal Insurance Arbitration Service (PIAS)