Common Car Insurance Questions
Before Taking Out A Policy
What are the types of car insurance cover available in the UK?
In the UK, there are three main types of car insurance cover:
Fully Comprehensive, Third Party, Fire and Theft, and Third Party Only.
Fully comprehensive offers the most coverage, including damage to your own vehicle, whereas Third Party Only covers damage or injury you cause to others.
How can I find the best car insurance policy for my needs?
The best way to find the most suitable policy for your needs is to compare different insurance providers.
Look at the coverage each policy offers, its customer service ratings, and its price.
You can use our ‘Get a quote’ tool to compare policies.
Is it better to purchase car insurance online or through a broker?
This depends on your personal preference.
Buying online can be quicker and often allows you to easily compare policies.
However, a broker can provide advice and may have access to deals not available online.
What factors affect the cost of my car insurance premium?
Several factors can impact your car insurance premium. These include:
Younger and older drivers are considered higher risk, leading to higher premiums.
The make, model, and age of your car affect its value, repair costs, and the likelihood of theft, impacting your premium.
Living in an area with higher crime rates or a higher density of traffic can increase your premium.
The more you drive, the higher your risk of being involved in an accident, potentially raising your premium.
A history of claims, accidents, or convictions can result in higher premiums.
Some professions are considered higher risk and may face higher premiums.
Choosing a higher voluntary excess can lower your premium, but you’ll pay more in the event of a claim.
Installing approved security devices can lead to lower premiums.
Adding extras like breakdown cover, legal protection, or a courtesy car can increase your premium.
Understanding these factors can help you find ways to reduce your car insurance premium.
Can I get car insurance if I have points on my licence?
Yes, you can.
However, having points on your licence may increase your car insurance premiums as insurers may see you as a higher risk.
Do all car insurance policies offer a No Claim Discount?
Most, but not all, car insurance providers offer a No Claim Discount.
This discount rewards you for each year you do not make a claim on your policy.
Can I add additional drivers to my policy?
Yes, most policies allow you to add additional drivers.
However, who you add and their driving history can affect your premium.
What does an excess mean in car insurance?
The excess is the amount you have to pay towards a claim you make on your car insurance.
There’s usually a compulsory excess set by your insurer, and a voluntary excess that you choose yourself.
Can I use my car for work under a standard policy?
Some standard policies may cover commuting to a single workplace.
However, if you use your car for other work-related activities, you might need a business use policy.
Do I need to have car insurance before I drive my new car?
Yes, it’s a legal requirement in the UK to have at least third-party car insurance in place before driving a car.
It’s essential to arrange cover before picking up your new vehicle.
During A Car Insurance Policy
Can I make changes to my car insurance policy after it has started?
Yes, most insurance providers allow you to make changes to your policy even after it has started.
However, significant changes might affect your premium or incur an administration fee.
Can I add breakdown cover to my existing car insurance policy?
Many insurance providers offer breakdown cover as an optional extra.
You should contact your insurance provider to find out if you can add this to your current policy.
How can I lower my car insurance premium during the policy term?
Some potential ways to lower your premium during the policy term include improving your car’s security, reducing your mileage, or increasing your voluntary excess.
Always consult your insurer before making these changes.
What should I do if I have an accident?
If you’re involved in an accident, ensure everyone’s safety first, then exchange details with any other parties involved.
Contact your insurer as soon as possible to report the accident and follow their instructions for making a claim.
What happens if I need to make a claim on my car insurance policy?
If you need to make a claim, contact your insurance provider as soon as possible.
They’ll guide you through the process, which usually involves providing details about the incident and any damage or injuries.
How does a no-claims bonus work?
A no-claims bonus is a discount car insurers give you for every year you go without making a claim.
The more years you go without claiming, the larger the discount on your premium can be.
What happens if my car is written off while under coverage?
If your car is written off, your insurer will usually pay you the car’s market value at the time of the incident.
This can be used towards a replacement vehicle.
Can I drive abroad with my UK car insurance?
Some UK car insurance policies provide coverage for driving abroad, but it may not be as comprehensive as your UK cover.
Always check with your insurer before you travel.
Can I cancel my car insurance policy before the end of the policy term?
Yes, you can cancel your policy at any time.
However, if you cancel before the policy term is over, you may have to pay a cancellation fee.
What happens if I miss a payment on my car insurance policy?
If you miss a payment, your insurer will usually contact you to arrange payment.
If payment is not received, they may cancel your policy, so it’s essential to contact them as soon as possible if you’re having difficulties making payments.
At The End Of A Car Insurance Policy
Can I pay for my car insurance premiums in monthly instalments?
Most insurers offer the option to pay your car insurance premium in monthly instalments or as an annual lump sum.
But what’s the difference?
This option can help you manage your budget by spreading the cost of insurance over the year. However, it’s essential to know that some insurers may charge interest for this payment method, making it more expensive in the long run.
Paying your premium upfront can save you money, as many insurers offer discounts for annual payments. It also eliminates the risk of missing a monthly payment and potentially having your policy cancelled.
Consider your financial situation and cash flow when deciding on the payment method that works best for you.