Car insurance is an essential 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
insurance that covers injuries to others (including
passengers) and damage to other people's property. A claim
situation would only arise as a claim against you by a
third party.
While this is the minimum amount of cover the law expects
of you, it doesn'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 –
essentially the same as third party but with additional
cover if your vehicle is set on fire or stolen. Again, this
doesn't provide the kind of cover that would protect the
money you have invested in your car and any possessions you
are carrying.
Most people opt for a fully comprehensive cover – this
covers third party, fire and theft as well as damage to
your car (whether its caused by you or someone else) and
the damage, loss or theft of any possessions carried in
your car.
The first step to consider when making any kind of claim on
your car insurance is what's covered? Not only does the
type of policy dictate the nature of your claim but also
the specific details of the policy.
For example, does your insurance include replacement locks?
Can you claim for personal possessions and if so what items
are covered and to what value?
It's worth noting that many people these days have home
contents insurance which covers items carried in your car –
check the difference in policy to see which insurance
policy is more cost effective to claim with.
There are two primary factors to consider when making a
claim – your excess charge and your no-claims bonus.
- Excess
The excess charge is how much you are willing to pay in the
event of an accident. Your insurance provider may set a
compulsory excess charge or the excess charge may be
voluntary – whichever the case, the golden rule is the more
excess you are willing to pay the lower your premium.
The excess charge can be a major deciding factor in whether
to make a claim or not.
For example, if you agree to paying an excess of £200 that
means that if you have an accident that costs £400 to
repair your vehicle, you pay £200 and the insurance company
pays £200. If your claim is less than £200 then the
insurance company will not pay anything.
So, as long as the claim is more than the excess you should
make a claim, right?
Not necessarily – 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.
About the Author:
Visit ASDA Finance at
http://www.asdafinance.com/insurance.html for a cheap
insurance quote including car insurance, home insurance and
life insurance.
legal requirement for any driver in the UK. At the very
least every driver is expected to have third party
insurance that covers injuries to others (including
passengers) and damage to other people's property. A claim
situation would only arise as a claim against you by a
third party.
While this is the minimum amount of cover the law expects
of you, it doesn'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 –
essentially the same as third party but with additional
cover if your vehicle is set on fire or stolen. Again, this
doesn't provide the kind of cover that would protect the
money you have invested in your car and any possessions you
are carrying.
Most people opt for a fully comprehensive cover – this
covers third party, fire and theft as well as damage to
your car (whether its caused by you or someone else) and
the damage, loss or theft of any possessions carried in
your car.
The first step to consider when making any kind of claim on
your car insurance is what's covered? Not only does the
type of policy dictate the nature of your claim but also
the specific details of the policy.
For example, does your insurance include replacement locks?
Can you claim for personal possessions and if so what items
are covered and to what value?
It's worth noting that many people these days have home
contents insurance which covers items carried in your car –
check the difference in policy to see which insurance
policy is more cost effective to claim with.
There are two primary factors to consider when making a
claim – your excess charge and your no-claims bonus.
- Excess
The excess charge is how much you are willing to pay in the
event of an accident. Your insurance provider may set a
compulsory excess charge or the excess charge may be
voluntary – whichever the case, the golden rule is the more
excess you are willing to pay the lower your premium.
The excess charge can be a major deciding factor in whether
to make a claim or not.
For example, if you agree to paying an excess of £200 that
means that if you have an accident that costs £400 to
repair your vehicle, you pay £200 and the insurance company
pays £200. If your claim is less than £200 then the
insurance company will not pay anything.
So, as long as the claim is more than the excess you should
make a claim, right?
Not necessarily – 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.
About the Author:
Visit ASDA Finance at
http://www.asdafina
insurance quote including car insurance, home insurance and
life insurance.
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