Insurance questions help?

Question

with insurance

a) if you put 7yrs no claims bonus how do they check it if at all?

b) whats difference between 3rd party theft and fire and comprehensive cover?

c) if your car has an alarm and immobiliser will insurance be cheaper?

d) do you need excesses and limits/motor Legal Protection and what the hec do they mean?

voluntary excess £0 £150 £250 £300 £350

personal belongings £200 £250 £300 £350

personal accident £5,000 £7,500 £10,000 £15,000

medical expenses £100 £200 £300 £400

in-car audio

e) with the section for cars value, do you put the price you paid for it or the price the car was originally worth? and the cheaper the car is, is the insurance cheaper?

sorry for all the questions!

Answer 1

a) normally you would need to provide proof in writing or at least your prev policy number and insurance company. If this cannot be verified your policy can be cancelled.

b) third party fire and theft covers just that and there would be no cover for damage to your vehicle if you caused the accident. Comprehensive cover covers damage to your vehicle whether the accident was or was not your fault.

C) dependant on the kind of alarm/immobiliser you can get a discount. If you have a thatcham alarm/immob fitted you should def get one

D) a voluntary excess you would pay in addition to your compulsory excess. if your comp excess is £100 and you add a voluntary of £350 you will pay £450 in the event of a claim.

Personal belongings is the limit they will pay for items in the car in the event of a claim such as if your car is stolen and your coat or something was in there. ( you could also make this claim on your house insurance for above the limit)

Personal accident is the payout amount for any injurys inthe event of an accident.

medical expenses the same

in-car audio is for you radio ie if someone breaks into the car and steals your radio. This can sometimes exclude stereos you have fitted yourself.

e) this sections should be how much the car is worth now. If you put its original amount you could end up with a higher premium. Try to make this as accurate as possible. In the event of a claim you will be paid market value for your car. unless it is a brand new vehicle less than 12 months old.

Answer 2

a) - They run your details through the insurance database to see your past records, if you lie, you insurance will be invallid

b) - 3rd party, fire & theft covers your car for: fire damage, theft, and any damage you do to another vehicle (won't pay for repairs to your own car though) Fully comp will pay for those things as well as damage that you did yourself (such as a crash that was your fault etc.), also most fully comp policies will pay for chipped windscreens, damaged remote central locking keys and daft little things like that. They will also pay for a courtesy car while yours is being fixed (usually). Sometimes they cover you to drive any other vehicle with the owner's permission but the exact requirements are policy dependant.

c) - Yes

d) - Excess - the amount you pay if you make a claim (the higher your excess, the lower your premiums). Select the cover for belongings etc. that you need but the higher the level of cover, the more expensive the policy.

e) - Put in the cars value which is probably what you paid for it. For example if you bought a 2nd hand car for £2000 you'd insure it for £2000. Unless you got it cheaper, say, from a mate. Then insure it for the value. As a rule, the cheaper the car, the cheaper the insurance but other factors are taken into account such as:

Driver's age - the younger, the pricier!

Driver's experience - the more the better!

Any past claims/convictions - these all put premiums up

The amount of damage the vehicle could do to another vehicle/object etc. - for example, a big 4x4 can do more damage and will cost more to insure than a car of equal value

engine size/power - more powerful cars cost more to insure

how many are stolen? - for example, a few years ago there was a spate of thefts of Pug 306s being stolen and insurance premiums rocketed.

Does it have an alarm/immobilisor - deterring thieves means the car is less likely to be stolen.

Hope this helps!

Answer 3

Would just add the following to Midnights excellent answer….

C Yes … but often it has to an ‘approved’ type to get a reduction in insurance cost, if you’re thinking of buying one to lower premiums make sure it has an accepted rating where you live. E.g. for the UK ‘Thatcham approved’.

D   the excess is the amount you have to cover yourself. So if you have a claim for 499 (or less) and the excess is 500…. you get nothing, if the claim is for 501 ….you get 1....600 you get 100... etc etc.

Obviously the higher the excess the less likely you are to claim and so the premium is cheaper.

E The car value will affect the premium, but it’s often a very small factor. (Midnight has explained most of them) so don’t expect to see 50% difference in premium for the same car worth 10,000 or 5,000 (or even 10% probably). The real cost of insurance is related to what damage you might cause to other people/property and for that reason your driving record and the make/type of car will make much more difference than its value.