Unknown Facts About Car Insurance
What car insurance do I need and how do I save money on my car insurance policy? What is car sharing insurance and is it for me?
Car insurance is a legal requirement in the UK. While we may understand that we need it, we may not always understand the technicalities of some policies, or what we’ve signed ourselves up for.
When insuring a car, a lot of questions can arise. In order to help you grasp a clearer perspective on car insurance in 2017, and to help you save money, we’ve gathered some unknown or unexplained facts.
Comprehensive car insurance – what is included?
Commonly known as ‘fully comp’, comprehensive car insurance is a popular policy chosen by all kinds of drivers. Comprehensive car insurance is the most protective and inclusive type, but it is also usually the most expensive. So, what do you get for your money?
Think of fully comp as being fully covered for any potential accidents, whether you’re at fault or not. Accidents happen, and it’s not just risky drivers who get into trouble. The road is a dangerous place, and it only takes a split second to make a mistake. With fully comp, you are covered when accidents occur through the fault of others. This level also covers you for any accidents where you are at fault. Comprehensive car insurance also covers you when blame cannot be made, e.g when someone drives away from an accident.
Ensure that you check your insurance policy for any additional costs. Breakdown cover, courtesy cars, and legal cover often cost extra. They may not be included in the cost of your premium, even if you do choose fully comp.
If your car is damaged, or if you cause damage to somebody else’s car, you need to make a claim to your insurer. Each car insurance policy will have a different excess that you will need to pay in the event of a claim.
Who can drive my car and what insurance do they need?
Do not assume that a comprehensive car insurance policy means that you are legally able to drive other cars. Also, don’t assume that another driver is able to drive your car, even if they think their policy allows it.
Driving other cars (DOC) is fast becoming an old policy factor that is no longer included in many of today’s policies. Under 25s and drivers with risky occupations, are not covered for DOC with the vast majority of insurers. Also, DOC (when included) is for emergencies only. Therefore it’s a common misconception that anyone can simply hop in the driver’s seat at the car owner’s discretion.
Make sure you thoroughly check the terms and conditions in your policy to know where you stand.
Named drivers: reduced cost, increased risk?
A young driver aged 17-24 has to pay an average yearly cost of £1,275 for car insurance. This is a completely unaffordable amount for most young people. In order to save money, drivers over 30, i.e. parents, are adding young drivers on their policy to get them on the road and avoid the ever-increasing cost of insurance.
However, being a named driver can cause problems. When a second or named driver is using the car more often than the policy holder, this is known as ‘fronting’ which is illegal and will invalidate your insurance, resulting in a possible conviction.
If you know that other drivers, either family members or friends, may need to borrow or use your car frequently, there are now risk free options for covering them to drive.
How can you protect your No Claims Bonus when other people are driving your car?
If you name a new driver on your policy, it is vital to check the terms and conditions to fully understand the No Claims Bonus protection. Luckily, our Temporary Car Insurance provides an easy solution to protecting your No Claims Bonus or No Claims Discount.
Car Sharing Insurance allows you to lend someone your car, or borrow a car from someone you know. Cover is available from one hour to 30 days and what’s more, the owner’s No Claims Bonus is not affected if an accident happens.