Description of car insurance

Description of car insurance

Which one? Car insurance quiz
Even when driving a Ferrari or a forklift, car insurance is an essential purchase. However, terms confused with different types of policies can be hard to stir up your head. Take our quiz and test the knowledge of major auto insurance facts and phrases.

What does auto insurance cover?
It depends on the type of policy you have, but auto insurance is usually applied to your vehicle, the damage that you may cause to other vehicles, the property of other drivers, and other general drivers It applies to you.

However, car insurance may include various items such as personal items, medical expenses, failure aid.

Learn more: Auto insurance add-ons - fees and expenses to be aware of.

What is the main type of car insurance?
There are three main types of car insurance:

third party

A third party covers the lowest level and protects you from damage by you or others of your passengers. This includes damage to other drivers and vehicles, lamp posts and accidental damage to the walls. Third parties do not cover your own car - you need to claim damages for yourself.

Third party, fire, theft

Fire or theft of a third party covers everything included in the cover of a third party, but if it is destroyed by theft or damage / fire, you will pay for repair or replacement I will.

Comprehensive car insurance

Comprehensive car insurance is the broadest range of coverage including fire and theft of third parties and third parties, but it covers wider damage to your own cars. In some policies, you may drive others' cars or borrow cars, but usually it is limited to third party level.

How does my car insurance premium work?
The insurance company sets the amount to be paid based on several factors, such as driver's record, personal situation, car itself.

For example, if you are an old driver with years of experience, living in a relatively safe area and driving a sensible car, the premium will be relatively cheap. However, if you are using a high-performance car with a young and inexperienced driver, the cost of the cover will be much higher.

Learn more: Find cheap auto insurance - Reduce the cost of your cover

What is the excess?
The excess is the amount you pay for the amount you charge for car insurance. For example, if you have a claim of 500 pounds and you have an extra 100 pounds, you will only receive £ 400 from the provider.

Most car insurance companies have two kinds of excesses. Mandatory excess amount that they can not set and modify, and any overdraft that you can set yourself.

If your insurer rewards you with a lower premium but this wishes to contribute in large quantities towards a claim that could make a very expensive claim in your policy, you should be careful with your voluntary excess Do not forget to set it.

Do I cover for driving abroad?
When driving a private car in the EU, the insurance company will automatically pay the insurance payment to meet the minimum legal requirements of the driving country, but from the basic third party insurance Not too generous.

If you have a comprehensive insurance policy, the insurer can extend the insurance contract overseas over the same level for a certain period of time. This "free" allowance period varies from long weekends to one year worth among insurers, but 60 to 90 days is quite common. Once the period has passed, your cover will return to the basic legal level.

Some insurance companies can extend their salary period. You can do this when retrieving policies. It is usually a price of about 20 pounds. You can also request an extension number by contacting the insurer after purchasing the policy.

What is a no claim bonus? Should I protect it?
A no-claim bonus is provided by a discount car insurance company if you can use the complaint for free for a long time. Depending on the insurance company you are in, you go without a claim for insurance every year, leading to a bigger discount.

However, if you make a claim, the no claim bonus will be cut, but the size of the cut varies depending on the insurance company. Insurance companies also have different policies on whether your claims are not responsible claims affect your bonus.

By paying to protect the bonus you can limit the impact on the bonus. Normally you need to pay 10% to 15% of the premium, which is normally only available in the same insurance company after 4 years.

If you are protecting a no claim bonus, making one complaint in a year will see discounting going down or disappearing. Making two complaints in one year will not affect your no claim, but you can reduce no claim to other claims.

Please remember that the no claim bonus will not protect your premium. When making a claim, the insurer takes this into consideration, the coverage rate rises and the percentage obtained remains the same.

Can I drive other vehicles under my policy?
Some comprehensive policies allow you to drive cars of your friends and family, and you can also drive a rental car - this is usually up to the level of third party coverage .

You can also add other drivers called "named drivers" to your policy. Therefore, you can also use a car.