Car Insurance: The Basics

Anyone who owns a car and drives regularly - the 36 million of us in the UK is after the RAC - car insurance must have the roads stay out. But which car insurance covers?

Car Insurance: The Basics

What does car insurance mean?

It depends on the type of policy you have, but auto insurance usually covers your vehicle, the damage it can cause to other vehicles, the property of other drivers and other drivers in general.

Car insurance may, however, be included or can be extended to include a number of different items, including personal items, medical expenses and breakdown assistance.

What are the main types of car insurance?

There are three types of car insurance:

Third

Third is the lowest level of coverage that protects against damage caused by you or one of your passengers to others. This includes damage to other drivers and their vehicles as well as accidental damage to lampposts and walls. Third do not cover your own car - the bill must pay for any damage to yourself.

Third, fire and theft

Third parties, fire and theft cover all third party coverage including but must also be paid by a fire in the event of the theft or damaged / destroyed to repair or replace your vehicle.

Comprehensive car insurance

Comprehensive car insurance is the most comprehensive coverage available, including third parties and third parties, fire and theft, but also against the larger of their own vehicle damage. Some guidelines also cover other cars - and sometimes hire cars - but usually only to the third level.

How is my car insurance premium it?

The insurer determines the amount paid by a number of factors depending on your ride, your personal circumstances and your own vehicle.

For example, if you are an older driver with years of experience living in a relatively safe area and driving a reasonable car, your premium will be relatively cheap. If you are a young driver with no experience with high-performance car coverage costs are however much higher.

What is a surplus?

A surplus is the amount you make to a claim you pay on your auto insurance policy. If you have a claim worth £ 500, and it has a more than £ 100, £ 400 can only be obtained from your provider.

Most car insurance companies have two types of excess. A compulsory surplus that is fixed and can not be changed, and a surplus of volunteers, you can determine yourself.

Remember to adjust your voluntary surplus carefully if you are willing to carry a lot to a claim to the insurance is rewarded with a lower premium, but this could make your claim on your very expensive policy.

I am covered to go abroad?

When you drive your own car in the EU, your insurer will automatically provide coverage to meet the legal minimum requirements of the country you drive. But this is seldom more generous than the third basic insurance.

If you have comprehensive coverage your insurance policy can cover your policy for a limited abroad while at the same level. This period of "free" allocation can vary between insurers from a long weekend into the penalty of one year - although 60 to 90 days is quite common. After the end of the period, coverage returns to the basic legal level.

Some insurance companies can extend the allocation period. This can happen when the policy is taken - usually at a cost of around £ 20. Alternatively, you can request your insurance company after the policy to purchase an extension.

What is a bonus claim and need to protect?

A no claims bonus is no discount car insurance offered if you can remain free claim for a longer period of time. Depending on the insurer with whom you are, each year a claim will result in a larger discount.

However, your no claims bonus will not be cut off when a claim is asserted, but the size of the cut varies among the insurers. The insurers also have different strategies on whether a claim that does not affect your debt is your bonus.

You can limit the impact of a claim to protect your bond. So, as a rule, you must pay 10% and 15% of the premium and is usually only after four years with the same insurance company.

If you protect your no claims bonus, so a claim in a year to see their discount fall or disappear. Make two claims in a not any year the demand could affect some companies, but not with others their claims could be reduced.

Remember, there are no bonuses not to protect your bonus. If a claim on your insurer does not take this into consideration and the cost of coverage may increase, while the percentage discount you may receive will remain the same.

Can I drive other vehicles under my policy?

Some comprehensive measures will drive the cars of their friends and family and may also allow you to drive car hire, even though this is usually only up to the level of third party coverage.

You can also add additional drivers to the policy, also known as '' called drivers, which will also cover your car.

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