Car
Insurance FAQ
Is it legal
to drive without car insurance?
No. Accidents do happen, and the law
states that you must be able to compensate any person you
injure or any damage you may cause. The cheapest form of car
insurance is third party , which only covers any damage that
you may cause. the most popular policy sold in the UK would
be comprehensive cover , which will cover you for any damage
to your own vehicle as well as anyone else.
What is an excess?
An excess is the cost you will have to pay
if you make a claim to your insurance company. A common amount
for an excess charge would be around £100. However,
if the claim was due to an accident which was not your fault
then you may be able to claim this excess back. You will however
have to pay the excess then try to claim the money back afterwards.
What
is a compulsory excess?
Some insurers may only insure you
if you agree to drivers if they agree to a compulsory excess
charge. This will usually be around £100 and is aimed
at giving you a cheaper quote.
What is
a voluntary excess?
A voluntary excess is aimed at what
insurance companies deem as higher risk drivers. drivers between
the ages of 17 - 21 are generally seen to be the highest risk
group and some insurers will only consider insuring people
from this group if they agree to pay a larger excess fee which
could be anything from £250 to £1000.
What is a
fault claim?
A fault claim is an insurance company's
way of saying that they can't recover their costs of any claim
that you make. This may be because you are at fault for an
accident claim or maybe the person at fault is untraceable.
What is no
claims discount?
No Claims discount ( NCD) is a discount
added to your policy for each year you do not make a claim.
This can increase to a maximum discount of 60% for 5 years
without claims. If you change insurance suppliers then you
can take this no claims discount with you.
What
is protected no claims discount?
If you do make a fault claim then you
will be penalized when you attempt to renew your policy by
a loss in your no claims discount. Protected no claims discount
will allow you to make claims to your policy without losing
any discount. Usually you will be able to make on average
2 claims in any 5 year period.
What is a high
risk group?
A high risk group is a section of the population
that insurance companies will feel are most likely to make
a claim due to statistics. If the insurance company puts you
in this section then you will have to pay higher than average
premiums and excesses. examples of high risk groups would
be males aged 17 - 21, drivers with 6 or more penalty points
or drivers who have made many claims.
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