Car Insurance Policy
A car insurance policy is a contractual agreement between an auto insurance provider and a consumer that stipulates the responsibility of each party and terms and conditions of the contract. In exchange for money paid for its service, the insurance company agrees to remit payment for repairs or replacement of damaged auto mobiles or other property in accordance with the coverage outlined in the policy contract.
Every driver operating a motor vehicle in the UK must have at least minimal cover for the person and the vehicle. To drive without valid insurance is risking huge fines, several penalty points and possible revocation of driving privileges. That legal penalty doesn’t include higher insurance rates charged as a convicted driver. The Road Safety Act of 1988 initiated this requirement aimed at protecting people from the financial burdens that auto accidents often incur. Coverage stipulated on these insurance contracts can differ, according to what the insured chose when the policy was purchased.
Every auto insurance plan has coverage levels per benefit option included. Those base levels can be raised for additional fees. So long as third-party liability is included, all other coverage areas may or may not be chosen, except when compulsory by another contract, such as a car loan agreement. Third-party cover pays when you are at fault in an accident and protects the other party for property damage or bodily injury. No benefits are paid for the insured’s vehicle or injuries. This basic insurance meets the legal requirements in the UK and is very cheap: Its limited benefits don’t inflate the premiums a great deal. The intermediate vehicle insurance policy type is called third-party fire and theft. Although there are a few additional incidents in which benefits are paid for the insured vehicle, if your car is damaged by fire or theft, the insurance company will remit repair expenses or a percentage of the stolen car’s value. At no time are there auto accident benefits for the insured car or motorist, however. Insurance companies who dislike the basic tier of insurance may offer this intermediate policy for around the same price, so look for this option for increased value.
Only a comprehensive car insurance policy pays for accident repairs for the insured vehicle, regardless of who is at fault for the accident. It provides the liability cover of lower-tiered insurance and the additional incident coverage of third-party fire and theft. Comprehensive cover is much more widespread than either third-party cover and, therefore, is more expensive. Because of the insured vehicle benefits, as well as popular optional features, many car owners maintain this level of cover beyond any loan requirement to do so.
Making a Claim
The entire paradigm behind auto insurance is financial protection. At times, making a claim is necessary, despite its probable impact on future premiums. Should an accident occur, the insured should write down a complete account of the events, including the details of the other driver or property owner. Insurance information, car VIN, description of the damage and even photographs would help. When the driver has all relevant information, he should contact the insurance company to report the accident, even if not at fault. The insurance company may want a statement from you if you did not cause the accident, but they will definitely want a claim form filed if you are at fault.
Be sure to complete the claim form completely. If more space is needed to provide information, then provide it on a separate paper and attach it securely to the claim form. Make a file copy of each page prior to sending it to the insurance company. If you need your car repaired, the carrier can often recommend a repair shop even if they aren’t responsible for paying those costs. If the damage is covered, they will probably send a representative to that shop or get repair estimates prior to work being authorised. You would have to pay your excess, but the insurance should pay any balance on covered repairs.
Choosing a Policy
There are so many policy options available today. Before beginning your search for affordable car cover, know what benefits you want, what benefits you don’t want and the maximum you can pay for the coverage. Note available funds for a deposit. If that amount is low, you might opt to search for online quotes for car insurance with no deposit. Premiums are higher, but you have no up-front, lump sum payment.
Regardless of the policy structure you choose, always deal with a trusted provider, and use our free, online tools to source multiple quotes from several top providers side-by-side. You have no obligation to purchase any policy shown and can continue your search for the cheapest car insurance policy that suits your situation.