Car Insurance Do’s and Don’ts

 

A few important points to remember when buying car insurance.

 Shop Around

There are so many companies out there now offering car insurance it is very important to make sure you shop around for the best deal. If you own a specialist vehicle such as a 4x4 or even a classic car, there are many companies out there who offer reduced premiums if you meet their criteria. Likewise if you have any driving convictions or you are a young driver, some companies will be able to offer you preferential insurance rates compared to others.

Once you have a number of quotes it is important to compare them fairly based on the price and the level of cover provided. Always check what additional items are covered such as car audio equipment and what value the vehicle is assured for.

Additional items may include excess, medical expenses, legal expenses, personal accident, personal belongings, no claims protection, and breakdown cover.

 Insurance and The Law.

In the UK it is illegal to use any vehicle on a public road without insurance. For this reason Car insurance is a necessity not a luxury. Estimates suggest that one in every twenty cars on the road in the UK are not covered. This serves to increase the Insurance premiums across the scale and also increase the risk of being involved in an accident with an uninsured driver.

From 2009 it will also be illegal to own such a vehicle unless the Driver and Vehicle Licensing Agency (DVLA) has been formally notified that the vehicle has been taken off the road.

At present, motorists convicted of driving without insurance could face between six and eight penalty points on their licence, a maximum fine of £5,000 and even disqualification.

 Other Insurance  tips.

It is always best to get your own policy. This means that you and you only are responsible for it. You can accumulate no claims discount which can save you up to as much as 75% on your premiums with some insurers

 Always be completely honest and truthful when answering the Insurers questions. They do have ways of checking whether you are telling the truth and any discrepancies could result in your policy becoming invalid making you liable for driving without insurance.

 Make sure you enquire about breakdown cover. Most insurers have deals where they bundle breakdown cover in with your policy. This could save you a fair amount of money over the course of a year and offers additional peace of mind.

 Let your insurer know if you plan on taking your car abroad.  You can then make sure that you are covered and legal to drive in another country. Before you travel, arrange to get a Green card fro your insurer. This is recognised internationally as evidence that you have met the minimum requirements for travelling abroad. If you re involved in an accident, make sure you contact your insurance company as soon as possible.

 

Also check out these articles.

New Car Buying Tips

Used Car Buying Tips

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Interview with Vicki Butler-Henderson

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The opinions expressed are those of the author only. The material is for general information only and does not constitute legal, financial or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation by an FSA authorised company where the market is FSA regulated.