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Basic Facts About Car &
Motor Vehicle Insurance
In The UK and FAQ's
It is a legal requirement to ensure that your
vehicle that is used on the public highways is covered by
suitable motor insurance under the Road Traffic Act.
Motor Insurance is offered in 3 levels:
- Third Party Only;
- Third Party Fire & Theft;
- Fully Comprehensive.
Third Party Cover (Cheapest)
This is the lowest minimum level of motor
insurance you can have and will only provide cover to third
parties and their vehicles that you have an accident with.
It does not cover your vehicle in any way for repair or for
loss.
Third Party Fire & Theft (Middle
Cost)
This is the middle level and covers the
same as Third Party only with the added cover for Fire and/or
Theft caused to your vehicle.
Fully Comprehensive (Highest Cost)
This is the same level as Third Party,
Fire and Theft as well as covering your car for repair and
for all loss and damage caused by an accident, and if your
car is stolen or is fire damaged.
Motor insurance at all levels will protect you
for liability for injuries to other people and any damage
to other people's property.
I Use My Car For Work / Business
If you use your vehicle to travel to your
place of work then, you will need specialised cover to protect
you for this in case you have an accident en-route. Otherwise
you may not be insured for this risk. Furthermore, if you
use your vehicle in order to visit customers in connection
with your business then you will need a commercial car insurance
policy. See Commerical Motor Insurance
section.
How will my premiums be affected
if I am convicted of a Drink Driving Offence?
If you are stupid enough to drink and drive
and endanger your self and more importantly innocent pedestrians
and other road users, and you are convicted of such an offence,
you will need to be prepared to see a doubling of your insurance
premiums and, in many cases, even more than 100%.
The answer is to NOT
DRINK AND DRIVE, EVER!
I don't take care of my car and
can't really be bothered about it.
If you fail to keep your car in a road
worthy condition then your insurer is within their rights
to withhold a payment for a claim. It is YOUR
responsibility to ensure your vehicle is kept in good working
order and mechanically and electronically sound and serviced
regularly and kept in a reasonable standard with legal tyres
at all times. If you have an accident and it can be proven
that defective tyres that were illegal caused the accident
then the insurer is within their rights to withhold a payment
should you claim.
I regularly take money from people
travelling in my car.
You are permitted to take passengers and
accept money from those passengers to help you with your motoring
costs then your car insurance will not be affected. For instance,
fellow workers sharing your car to go to work. If, however,
you make a profit from carrying passengers or if you are transporting
people in the course of a business activity then you will
need to declare this to your insurance company, as you will
need a special policy to cover you for commercial purposes.
See Taxi Insurance.
No Claims Discount – I don't
want to lose it.
It is normal for most motor insurance companies
to permit you to "protect" your valuable no claims
discount for an additional fee. This way you can have a limited
number of claims and still retain your No Claims Bonus, NCB.
Do I have to tell the Insurance
Company about accidents I've had before?
The short answer is – YES you do.
If you lie on your car insurance application form, or withhold
information, which is basically the same thing, as you are
deliberately not telling the company, or you fail to keep
your insurance company up to date with any changes to your
personal situation. Health, deteriorating eyesight, or any
other details which would be classed as a material fact, then
you run the risk of invalidating your policy all together
and any claims you might make will not be met.
I am going abroad for a tour around
Europe, as we are EEC members I don't have to tell my insurance
Company – Do I?
All UK car insurance policies will cover
drivers abroad in EU countries for a minimum level required.
However, consider it a wise move to inform them of your intended
trip BEFORE you go, as you may require an
extended level of cover, so don’t forget about it and
find out it’s too late. A simple phone call can save
you a great deal of heartache and spending time in a Turkish
prison, for example, for driving whilst uninsured.
I had a slight accident today but
no one was hurt, only my pride. I shan't tell the Insurer,
there's no need.
In fact that's not true you must inform
the insurer if you are involved in an accident, even if no
one was hurt and you don't intend to make a claim, as your
policy agreement obligates you to tell them regardless. Again,
it's a simple phone call and the incident can be put on record,
which is better than withholding the information.
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