Common
Car Insurance Questions
Like any specialist area
in financial services there can be a wealth of information
which simply goes over the head of the typical customer. For
car insurance this can be from terminology
used such as ‘no claims bonus’
or the why’s and where-fore’s of procedure (example:
‘How exactly do I make a claim?’). To help as
best we can and clear the head of online users seeking car
insurance we have answers to the typical question that are
posed.
Is car insurance
totally necessary? – yes it is. United Kingdom
law states that drivers must have valid car insurance at a
minimum level. In driving you have the potential to injure
both property (someone’s car, house etc) and persons
(driving accidents can cause harm and sometimes serious injury).
Because of this you must be able to compensate someone in
the event of either – therefore car insurance cover
is required.
What is the minimum
level of cover I need? – to legal drive on
the UK roads third party only insurance is the minimum level
necessary. As explained as above you must be able to compensate
other people for damages. Third Party insurance does this,
however it should be noted the policyholder themselves has
little or no protection.
I have seen details
about excess noted on my policy, what is this? –
in basic terms ‘excess’ is the percentage of amount
of money you must pay when making a claim. It is a way of
sharing the financial responsibility for payment of claim
damages between the car insurance company and the policyholder.
This will usually be set at a maximum level and from then
onwards the insurer will take financial responsibility for
the remainder.
How do I take out
a car insurance policy? – this is quite a simple
procedure and if you choose a company with whom to take out
cover they will be more than happy to help and explain if
you are unsure. It will involve providing them company with
various details such as your age, UK location, car type and
so on. The insurance company uses this to provide a quote
– which is basically the cost of proposed cover. If
you are happy with this they will then arrange cover commencing
from a designated date. Premiums paid can usually be arranged
for payment in lump sum or monthly instalments (which is more
common).
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