Car i urance is an e ential part of motoring it's a legal requirement for any driver in the UK. At
Car i urance is an e ential part of motoring it's a legal requirement for any driver in the UK. At the very least every driver is expected to have third party i urance that covers injuries to others (including pa engers) and damage to other people's property. A claim situation would only arise as a claim agai t you by a third party.
While this is the minimum amount of cover the law expects of you, it doe 't cover very much for example, if your car is in an accident and gets written off, you would lose the value of your car.
The next step up is third party, fire and theft e entially the same as third party but with additional cover if your vehicle is set on fire or stolen. Again, this doe 't provide the kind of cover that would protect the money you have invested in your car and any po e io you are carrying.
The most popular cover is fully comprehe ive cover which covers the owner in the event of causing damage to a third party, in the event of fire and theft as well as damage to one's car and the damage, and also the lo or theft of any goods from within the car.
The first step to co ider when making any kind of claim on your car i urance is what's covered? Not only does the type of policy dictate the nature of your claim but also the ecific details of the policy.
For example, does your i urance include replacement locks? Can you claim for personal po e io and if so what items are covered and to what value?
It's worth noting that many people these days have home contents i urance which covers items carried in your car check the difference in policy to see which i urance policy is more cost effective to claim with.
There are two primary factors to co ider when making a claim your exce charge and your no-claims bonus.
- Exce
The exce charge is how much you are willing to pay in the event of an accident. Your i urance provider may set a compulsory exce charge or the exce charge may be voluntary whichever the case, the golden rule is the more exce you are willing to pay the lower your premium.
The relative impact of the exce charge should play a major part in deciding whether or not one should make a claim.
In the hypothetical situation that you have an accident that results in 400 worth of damage, the first 200 would be covered by your exce and the remaining 200 would be covered by the i urance company. If your claim is le than 200 then the i urance company will not pay anything.
So, as long as the claim is more than the exce you should make a claim, right?
Not nece arily that brings us on to our next major factor:
- No claims bonus
To some people the thought of losing their no-claims bonus is the stuff of nightmares. It's no surprise some no claims bonus policies can save you 65% on your premium if you have five years or more of no claims.
The particular details of your no-claims bonus vary from policy to policy with some there is no quarter: if you make a claim, you lose your bonus. With others there is a system of "three strikes and you're out" whereby you are allowed to make two claims within a certain time period but a third would result in your losing your bonus.
There are also protected no claims bonus policies where you can pay an extra premium to protect your no claims bonus so even if you have to make a claim you save money.
Far from being straightforward, making a claim can become a careful balancing act of costs. To make the right decision you need to weigh up, not just the cost of the claim but the effect that claim will have on your premium.
While this is the minimum amount of cover the law expects of you, it doe 't cover very much for example, if your car is in an accident and gets written off, you would lose the value of your car.
The next step up is third party, fire and theft e entially the same as third party but with additional cover if your vehicle is set on fire or stolen. Again, this doe 't provide the kind of cover that would protect the money you have invested in your car and any po e io you are carrying.
The most popular cover is fully comprehe ive cover which covers the owner in the event of causing damage to a third party, in the event of fire and theft as well as damage to one's car and the damage, and also the lo or theft of any goods from within the car.
The first step to co ider when making any kind of claim on your car i urance is what's covered? Not only does the type of policy dictate the nature of your claim but also the ecific details of the policy.
For example, does your i urance include replacement locks? Can you claim for personal po e io and if so what items are covered and to what value?
It's worth noting that many people these days have home contents i urance which covers items carried in your car check the difference in policy to see which i urance policy is more cost effective to claim with.
There are two primary factors to co ider when making a claim your exce charge and your no-claims bonus.
- Exce
The exce charge is how much you are willing to pay in the event of an accident. Your i urance provider may set a compulsory exce charge or the exce charge may be voluntary whichever the case, the golden rule is the more exce you are willing to pay the lower your premium.
The relative impact of the exce charge should play a major part in deciding whether or not one should make a claim.
In the hypothetical situation that you have an accident that results in 400 worth of damage, the first 200 would be covered by your exce and the remaining 200 would be covered by the i urance company. If your claim is le than 200 then the i urance company will not pay anything.
So, as long as the claim is more than the exce you should make a claim, right?
Not nece arily that brings us on to our next major factor:
- No claims bonus
To some people the thought of losing their no-claims bonus is the stuff of nightmares. It's no surprise some no claims bonus policies can save you 65% on your premium if you have five years or more of no claims.
The particular details of your no-claims bonus vary from policy to policy with some there is no quarter: if you make a claim, you lose your bonus. With others there is a system of "three strikes and you're out" whereby you are allowed to make two claims within a certain time period but a third would result in your losing your bonus.
There are also protected no claims bonus policies where you can pay an extra premium to protect your no claims bonus so even if you have to make a claim you save money.
Far from being straightforward, making a claim can become a careful balancing act of costs. To make the right decision you need to weigh up, not just the cost of the claim but the effect that claim will have on your premium.
