The Need for Motor Insurance

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Motor Insurance protects all motorists against liability in relation to any accidents they are involved with as well as cover for their own and in some cases, dependant on the type of policy, other motorists' vehicles. Cover varies widely, for examples of various cover see Types of Car Insurance Cover.

All motorists are required to be insured against their liability to others, inlcuding passangers, as a minimum under the Road Traffic Act. It is an offence to drive your vehicle or allow other to do so without adequate insurance.

When you take chose your insurer and purchase your motor insurance the insurer with send various documents to you. Included in these is usually a Policy Document and Schedule of Insurance. The Schedule will set out all the details you have provided to the insurer for you to check, while the Policy Document, usually a booklet, will include full terms and conditions of your insurance policy. It is useful to check any special notes or exclusions on the Schedule, normally only sited by the reference number, for example 6a. This refers to a note in the Policy Document booklet and is a quick way to check conditions or exclusions specific to your policy. The insurer must also send a Certificate of Insurance and it is this document which is your official evidence of insurance as required by the Road Traffic Act. You may initially receive a Cover Note as a temporary certificate of insurance for the purposes of the Road Traffic Act, these normally site dates for around 14 days from the date you took your insurance policy to cover you while the Certificate of Insurance is prepared and sent to you. If you do not receive your Certificate of Insurance by the end of the date of your Cover Note it is a good idea to contact your insurer and bring this to their attention.

Things to bear in mind when making an initial quote enquiry from any insurer could include the following:

No Claims Discount

If you already have a motor insurance policy and have made no claims you will normally qualify for a No Claims Discount on your policy premium. Amounts of discount vary from insurer to insurer but make sure you know how many years' you have been claim free as your discount can vary from around 25% for one year to up to 60% for more than five years. Bear in mind that to qualify for a No Claims Discount you must have not made any claims on your motor insurance policy, this includes claims for theft or any other incidents which were not your fault. The No Claims Discount used be limited to you renewing your insurance with your existing insurer, but it is now common for insurers to take into account any No Claims Discount you had with a previous insurer. Your new insurer may, therefore, make any No Claims Discount they are offering dependent upon you sending your previous Certificate of Insurance document to them as proof of any existing No Claims Discount.

Once you have a No Claims Discount, if you need to make a claim you may not lose all of your discount depending on how may years No Claims Discount you have. Insurers will often reduce your No Claims Discount to a lower level for example from 60% to 40%. However once you have accumulated five or more years without a claim you can ususally 'protect' your No Claims Discount if you pay a slightly higher premium. This however does not cover you for unlimited claims, it means you can usually retain your discount if you make a claim during the period of insurance (normally a year) or possibly you can make two claims in three periods of insurance. Bear in mind however that the percentage of discount is protected, not your premium. This means that although your discount percentage is protected through a claim, depending upon the nature of the claim your premiums may rise considerably, therefore it is sometimes worth considering if making a claim on your insurance is the most economic process after checking the reduction in your No Claims Discount percentage and/or any likely rise in premiums.

If you are taking an insurance policy on a second vehicle, the No Claims Discount often has to be earned from the start. Some insurers though may allow the discount earned on one vehicle to be carried over (or possible a smaller percentage to be carried over) to a second vehicle, although it is worth checking any conditions attached to this, for example a considerably higher excess. Alternatively insurers may offer introductory discounts for a second car, particularly for occasional or lower use (see vehicle use).

Policy Limits/Excesses

Ask for specific amounts regarding any cover limits and/or excesses your policy may have. A cover limit may apply for example to personal possesions in the vehicle, if you are frequently carrying expensive items in your vehicle you could raise the cover limit with your insurer, alternatively you can often take additional cover for possessions outside the home on any home contents insurance you may have, this may be more cost effective than including high value personal items on your motor insurance policy. In any event you need to be sure cover limit with be sufficient to cover or replace your loss. Excesses refer to the portion of a claim which you are responsible for paying, the insurer will pay out the difference between the excess and the total claim agreed by them. You can reduce the total cost of your car insurance policy by agreeing to a higher excess in many cases, but you need to be aware that you are agreeing to pay this amout yourself in the event of a claim. There could be a number of different excesses on your policy depending on what you are claiming for. For example whether a claim is for theft, accidental damage or windscreen replacement.

Vehicle use and Other Drivers

Your Schedule and Certificate will probably set out the uses and average mileage for which your vehicle is insured, for example, if you use your vehicle for any travelling in connection to business or work, particularly any journeys in addition to basic travel to and from work, make sure your policy covers this.

Your policy and Certificate may include regular drivers of you vehicle apart from yourself. Your premiums will be affected based on the age, number of years driving, occupation and claims record of anyone you wish to be included on your policy. You will need to provide your insurer with accurate details regarding other drivers at the time you take out your policy. You can have a policy to cover any driver or any driver over a certain age, this will, however, usually come with a considerably high premium.

Other additions to Car Insurance

There are many varied and specific additions to available car insurance policies. If you have any special requirements you may have to shop around and contact quite a number of insurers to accommdate your specific requirements. Be aware that it can be beneficial to extend your search even if you find an insurer who covers special or specific needs as the difference in your car insurance premium could still be considerable between various insurance companies and agents. Most insurers cover basic additions, for example;

Legal Expenses

This will often be offered to you when you ask for an insurance quote. This is usually as an extension of your motor insurance policy but may be available as a separate product. Legal Expenses cover may help you recover uninsured losses from the other party (for example your excess) if you are involved in an accident that was not your fault.

Driving Other Cars.

A lot of car insurance policies will have this included. It often makes a negligable difference to the insurance quote/premium. However, you need to be aware that while this does cover the policyholder to drive a car that belongs to someone else the cover is limited to third party only. This is the case even if your own car insurance is fully comprehensive. Therefore if you are borrowing someone else's car it may be worth the owner arranging with their insurer to cover you under their car insurance policy. This can normally be done easily and often can be arranged for the length of time you borrow the vehicle only, for example two weeks. This is usually a cost effective precaution.

Keep Your Insurer Informed

If there are any changes to your circumstances which effect your car insurance, you must inform your insurer. These do not only include change of vehicle but also change of address, change of employment details and any motoring convictions and/or fixed penalties. Any change in information not notified may invalidate your policy.

Points to remember if you have an claim incident

Firstly, be prepared. It is a good idea to keep pen and paper in your car for various reasons, but invaluable in the event of an accident. If you have an accident take as much information as possible. Note names and addresses of any passers by and witnesses, take details of the other driver(s) involved include name, address, contact telephone number, car type including registration number and name of insurer. It can be useful to make a quick basic sketch of the accident plan while you have the information to hand and details are fresh.

The other party will reasonably want similar information from you, regardless of who was at fault. It is sensible not to enter into any discussions as to who was to blame at the accident scene as people could be shocked, confused and sometimes volotile, also this could create problems with your insurance claim further down the line.

Tell your insurers as soon as possible they will usually issue an accident report for you to complete. Again enter information as soon and fully as you can.

If your car is stolen inform the police immediately, then tell your insurer. You will probably have to wait a certain length of time in case the car is recovered. Most stolen cars are found abandoned and returned to the owner. If this is the case check carefully for any property stolen, again inform the police straight away and then your insurer.

Car Security Tips

In spite of car theft statistics most people are guilty of at least occasional complacency with regard to car security. Cars can commonly be noted with open windows or sunroofs, property in view on seats and even left with the engine running. Here are some points to try and remember each time you leave your car.

When parking your car at night try to park in well lit areas. Some car parks now have marked out areas indicating which parking bays are covered by local CCTV. If you are in a car park which required a ticket to exit make sure you take the ticket with you.

If you are carrying your car documents with you on any journey make sure you do not leave them in the car unattended but take the with you at all times.

If you leave any property in you car make sure it is placed in the boot and locked.

Close all windows and sunroofs.

Never leave the key in the ignition even for seemingly short periods of time or in busy areas like petrol filling stations.

Always lock you car when you leave it, even in your own driveway.

You may wish to have the windows etched with the registration number as an additional anti-theft measure

Most motor insurance policies will not pay out on any claim where there has been carelessness on the part of the owner or driver. Your car insurance policy requires you to take reasonable precautions and care for your property at all times. Having a properly fitted alarm or immobiliser may not only deter theives but also reflect favourably in your motor insurance premiums. You can check with your insurer which systems they approve of or prefer.

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