What is car insurance? here's the explanation
Car insurance is a necessity for all of us when driving on the road, but finding the right type of protection can be tricky. This guide aims to provide a better understanding of the basics of car insurance and help you make a more informed choice when choosing a policy.
We all need car insurance to drive on the road, but finding the right type of protection can be tricky. This guide aims to provide a better understanding of how car insurance works and help you make more informed choices when choosing the right coverage.
How to choose car insurance?
We all need car insurance to drive on the road, but finding the right type of protection can be tricky. This guide aims to provide a better understanding of the basics of car insurance and help you make a more informed choice when choosing a policy.
How does car insurance work?
Car insurance pays if your car is stolen, damaged, burned, or if you are involved in an accident. At the very least, this insurance protects you from damage you cause to other road users, the public, or their so-called third-party property.
You only need to file an insurance claim if the accident is your fault. If the other driver is at fault, then their insurance will have to pay. Find more information in our guide on how to file a claim.
Do I need car insurance?
Yeah. Driving on the road in the UK without car insurance is illegal.
If you drive without car insurance, you could face a fine of up to £1,000 or your vehicle could be impounded and destroyed. Website GOV.UK have more details about the penalties you may face.
The only time in which you do not need to insure your car is if you officially declare that the car is not in use through a declared off-road notice (SORN). However, the vehicle must remain on private land and not on public roads.
Website GOV.UK -drivers without insurance
What does car insurance cover?
Car insurance protects you from financial loss, but the level of protection depends on the type of policy you choose.
If you cause an accident, your insurance company will cover the cost. All you have to pay is a claim - a fee determined by the insurance company - plus any voluntary claim, that is, an additional amount determined by you. If you file a claim, your premium is likely to increase.
how much is covered by your insurance company.
What types of car insurance are available?
There are three levels of car insurance coverage:
Comprehensive protection
It is sometimes called "complete protection "or shortened to"comprehensive".
Key features: protects you, your car, passengers, and your property, as well as third parties involved in an accident. Also protect your car from acts of vandalism and theft.
Suitable for: most drivers. Three-quarters of drivers in the UK choose comprehensive protection because it offers the most complete protection. Some comprehensive policies will allow you to drive other cars, but not all.
Third party car insurance, Fire and theft
Often abbreviated to TPFT.
Key features: protects third parties involved in an accident, but also provides protection against theft and fire damage to your car. This insurance will not pay to cover damage to your vehicle after an accident or act of vandalism.
Suitable for: those looking for a cheaper policy, although comprehensive insurance can still sometimes be cheaper. Check out our guide on the different levels of protection
Third party car insurance only
Key features: only protects third parties involved in accidents. It does not provide protection for damage to your own car.
Suitable for: those who are looking for a policy with a lower cost and are ready to take greater risks related to damage to their own car.
Choosing the right type of car insurance for you depends on your needs and budget. It is important to understand what each type of protection covers before making the right decision.
Key features: this is the basic level of car insurance and covers liability for injury to others and damage to third party property only. This level of protection is the minimum legal requirement for motorists in the UK.
Suitable for: drivers who rarely drive, or those who are looking for protection at the lowest cost. Not all insurance companies offer this type of policy. Not always the cheapest.
Other types of car insurance coverage
There are different types of car insurance coverage, designed for a specific driver or vehicle. These include:
Multi-car insurance allows households to get discounts for insuring multiple vehicles with the same insurer.
Black Box Insurance-suitable for young or new drivers who have just graduated to get cheaper car insurance by monitoring their driving behavior using telematics devices.
Car insurance for young drivers - protection for young drivers, considered by car insurance companies as high-risk drivers.
Car insurance for beginners-car insurance that protects you until you pass your driving test.
Taxi insurance-taxi drivers face higher premiums because they drive for long hours.
Short - term car insurance-temporary protection for driving a car for only a few days or a few hours.
How long does a car insurance policy last?
Most car insurance policies last for one year, although you can choose to end your policy early by being charged a cancellation fee, which can be as high as £55. Find out more about your policy fees and cancellations in the managing your policy guide.
If you need car insurance coverage for a shorter period, you can take out a short-term policy that lasts only a day or a few weeks. Our short-term car insurance guide has everything you need.
How much does car insurance cost?
The cost of your protection depends on one thing: risk.
If the insurance company sees you as a high-risk driver, they will charge you a higher premium because you are considered more likely to get into an accident and file an expensive claim.
Car insurance companies use the following factors to determine your risk profile.
The car you drive
Your car: an expensive new car can be more expensive to insure because repair bills are usually higher. Similarly, some older cars have fewer modern safety features and can be more expensive to insure.
Machine size: the general rule is that the bigger your machine, the higher your insurance premium. Cars
Posting Komentar untuk "What is car insurance? here's the explanation"