Common Car Insurance Questions
Like any specialist area in financial services there can be a wealth of information which simply goes over the head of the typical customer. For car insurance this can be from terminology used such as ‘no claims bonus’ or the why’s and where-fore’s of procedure (example: ‘How exactly do I make a claim?’). To help as best we can and clear the head of online users seeking car insurance we have answers to the typical question that are posed.
Is car insurance totally necessary? - yes it is. United Kingdom law states that drivers must have valid car insurance at a minimum level. In driving you have the potential to injure both property (someone’s car, house etc) and persons (driving accidents can cause harm and sometimes serious injury). Because of this you must be able to compensate someone in the event of either – therefore car insurance cover is required.
What is the minimum level of cover I need? – to legal drive on the UK roads third party only insurance is the minimum level necessary. As explained as above you must be able to compensate other people for damages. Third Party insurance does this, however it should be noted the policyholder themselves has little or no protection.
I have seen details about excess noted on my policy, what is this? - in basic terms ‘excess’ is the percentage of amount of money you must pay when making a claim. It is a way of sharing the financial responsibility for payment of claim damages between the car insurance company and the policyholder. This will usually be set at a maximum level and from then onwards the insurer will take financial responsibility for the remainder.
How do I take out a car insurance policy? – this is quite a simple procedure and if you choose a company with whom to take out cover they will be more than happy to help and explain if you are unsure. It will involve providing them company with various details such as your age, UK location, car type and so on. The insurance company uses this to provide a quote – which is basically the cost of proposed cover. If you are happy with this they will then arrange cover commencing from a designated date. Premiums paid can usually be arranged for payment in lump sum or monthly instalments (which is more common).
Tags: typical question, driving accidents, car insurance questions, premiums, company, drive on, liability insurance, Types of insurance
