Different Types of Cover
Third party only
This is the most basic level of cover. It won't pay out for any damage or injury to you or your car in the event of an accident but covers you against claims from third parties. You may then have to claim against them for repairs to your vehicle.
Third party, fire and theft
This is like third party cover but it also pays to repair or replace your car if it's stolen or damaged by fire. It might be suitable if your car won't cost much to replace should you write it off.
Comprehensive
With comprehensive insurance you get the same cover as third party, fire and theft, plus the insurer will pay out if you cause damage to your own car. Policies may also provide a range of additional benefits such as cover for windscreens, stereos, personal belongings, death or personal injury, and extended foreign travel cover.
How Premiums are Calculated
May factors are taken into account;
Car grouping
All cars have a group rating between one and 20. This is based on the cost and availability of spare parts, the price of the car, performance and security features. The higher the rating, the higher the premium.
Who's driving?
The more drivers you insure, the more expensive your premium is likely to be. To cut costs, name the drivers you want to insure rather than opting for an 'any driver' policy.
Other important factors
You'll sometimes pay more if you keep your car on a driveway or on the street than if you keep it in a garage. If you modify your car in a way your insurer could charge you a higher premium.
Discounts
Some discounts are given automatically but you can make yourself eligible for others;
Voluntary excess
You can get a discount on your premium if you agree to pay a voluntary excess in addition to that automatically levied by your insurer. A compulsory excess of £100 plus a £200 voluntary excess means you'll have to pay the first £300 of every claim.
No claims discount (NCD)
For each claim-free year you'll receive a discount on your premium. Maximum discounts hover around 65 per cent.
Security devices
Not all security systems qualify for a discount. Insurers often specify that the device must be tested and approved by Thatcham - an organisation that tests security systems.
Driving courses
Young drivers can save money by taking a Pass Plus course. consistng of six training sessions within a year of taking your practical driving test, and when your instructor is happy with your standard of driving, you'll receive a certificate.
Know Your Cover
Got a good Quote? Now you need to find out whether the cover is right for you. To help you decide, we've taken a close look at some of the important areas where policies can vary.
New for Old
The maximum a policy will pay out when you make a claim is normally the market value of your car at the time it was damaged or stolen. You can avoid this potential problem by choosing a policy that offers new-for-old cover. This will replace your car with a brand new one if it's stolen or severely damaged within the first 12 months.
Courtesy Car
If you're dependent on your car, you'll want to know that you can get a courtesy car while your car is being repaired. You'll normally have to take out comprehensive cover to get a courtesy car. Most policies provide one. But check exactly what the insurance company means when it says it will provide a courtesy car. For example, some ask you to contribute whilst others may offer you a very limited selection.
Foreign Travel
All policies will give you the legal minimum cover required in EU countries. If you want the same level of cover abroad as you do at home, you may have to pay an extra premium. With others, your cover is automatically extended at no extra cost provided that you're travelling within the EU or any other country listed in the policy. Regardless of whether or not you get free cover, you should tell your insurer if you intend to take your car abroad.
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