Hot Topics
- What is a Comprehensive Motor Insurance policy cover?
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Comprehensive cover is when you cover your vehicle against most forms of damage that may occur to your vehicle. This doesn't mean you are covered for absolutely everything. If you look in depth into your comprehensive car insurance contract you'll probably find some significant exclusions.
- How do I make a claim on a Motor Insurance policy?
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You should also take the time to familiarise yourself with the claims procedures at each new motor insurance company you use. Each company has a slightly different claims procedure, it is imperative that you understand both what is covered and how you should approach making a claim against your policy.
- How do I claim if the accident involves a third party?
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In insurance terminology, a third party is defined as anyone else involved in an accident who is not the policy holder. Under UK law you are required at all times to have a minimum of act only third party insurance, but in reality most insurers only offer full third party insurance. This insurance will ONLY protect any damage done to third parties involved in an accident, not to your own vehicle. There is also the question of personal compensation, usually this is also covered by a third party policy, if in doubt check your policy documents.
- How can I lower my Motor insurance premiums?
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Many factors influence the premiums of your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote - some of which will affect your premium and some will not. To name a few of the important variables, the vehicle you drive, your gender and your age are all important to the insurer whilst they calculate your quote. Below we have discussed several of these key variables that are within the policyholder's control.
- Can I use my car for business use?
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Class SDP. This class of motor vehicle use is for the policyholder and Named Drivers only using the vehicle for social, domestic and pleasure
How your premium is calculated
The main factors influencing the cost of your insurance policy are:
- Age of the driver
- Sex of the driver
- Performance of your vehicle
- Number of years you have been driving
- Use of the car on a daily basis
- Postcode in which the car will usually be kept
Looking at all of these factors as a whole the insurer will calculate your annual premium.
Insurers take a view on the market as a whole, they statistically analyse the risk of claims in different areas of the market and work back to offer each their premiums. This always applies, whether or not you are a good driver, you will always be offered the premiums that your characteristics allow you NOT your skills.
The group most likely to pay high premiums are young, adult males with a high performance vehicle with relatively little driving experience. In these cases premiums may be as large as £5,000 to £10,000 per annum.
Another example, female drivers in their early fifties with a small low performance vehicle who have been driving the majority of their life will pay a significantly lower premium than the young males mentioned above.
Type of car
Cars are categorised into 1 of 20 insurance groups. The higher group, the higher the premium. These groups are defined by a number of factors, such as:
- The cost to repair certain body parts
- The ease of replacement of certain body parts
- The ease to find certain replacement body parts
- The acceleration of the vehicle
- The value of the car when new
- The car's resistance to theft
By collating this information, a sliding scale is calculated for the car which will ultimately correspond to the premium necessary to cover the vehicle.
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