MOTOR INSURANCE – 6 FACTORS TO CONSIDER WHEN CHOOSING A POLICY

MOTOR INSURANCE FACTORS TO CONSIDER WHEN CHOOSING A POLICY Choosing motor insurance can be a daunting process and it can often be tempting to simply go with the cheapest option. There are however, a number of factors to consider when choosing a policy in order to avoid any unexpected charges or surprises further down the line. NB: These are general descriptions of what motor insurance may cover. Specific details regarding coverage will vary depending on each policy. # 1 PRICE When choosing motor insurance it is important to shop around providers to ensure you are getting the best deal. Most insurance providers advertise on price comparison websites, which compare prices of thousands of providers to help you to choose the right policy at the best price. The price of the policy can depend on a number of factors, including: your age, occupation, address and vehicle type. #2 LEVELS OF COVERAGE & EXCESS There are three levels of motor insurance cover: THIRD PARTY Covers other people (third parties) but not you. THIRD PARTY, FIRE AND THEFT Covers other people and if your car is damaged by fire or is stolen. COMPREHENSIVE The highest level of cover you can purchase, which covers you for third party damage and damage to your own vehicle, even if the damage is your fault. When you make a claim, your insurer usually won't pay for the whole of your claim- you will have to pay a set amount yourself, this is known as an 'excess'. Along with the compulsory excess set by your insurer, you can also increase the amount of voluntary excess you are willing to pay, which can often reduce the cost of your policy. #3 POLICY FEATURES Motor insurance policies have a variety of features, some of which are important and other which are less so. Below you will find a list of 'must have' and 'optional' features to help you choose the correct policy. MUST HAVE FEATURES: An added extra that covers your legal fees should MOTOR LEGAL PROTECTION you make a claim. Your windscreen will be repaired if damaged. WINDSCREEN COVER Your insurer will provide you with a vehicle while yours is being repaired. COURTESY CAR PERSONAL Cover for serious injury of death as a result of an accident. INJURY OPTIONAL FEATURES: Covers for loss or damage of your personal belongings e.g. bags, phone etc. PERSONAL BELONGINGS COVER BREAKDOWN Provides assistance should your vehicle breakdown and needs repairing. COVER STEREO AND Covers you for loss or damage to your SAT NAV COVER stereo and sat nav. #4 GAP INSURANCE This type of cover is optional and is often taken out when purchasing a new vehicle. This type of cover pays you the difference between what your insurer values your vehicle to be at the time of the accident and the original amount you paid for your vehicle. This is often useful to take out if you have purchased your vehicle on finance, as it can ensure you have the funds to repay the finance company. #5 NO CLAIMS BONUS With motor insurance, the less you claim, the happier your insurer will be. If you do not make a claim, your insurer will reward your good driving with a 'No Claims Bonus', which is usually a reduction in your premium. Some insurers give you the option to 'protect' your no claims bonus. This allows you to make a claim, without affecting your 'no claims bonus'. #6 BLACK BOX INSURANCE Some insurance providers offer a Black Box insurance which monitors how well you drive. A 'black box' is usually fitted in your vehicle which monitors speed, braking, cornering and the time of day/night that you use your vehicle. These factors can help you to earn discounts off your premium. However if you drive badly you can expect to see an increase in your premium. This is often suited to those with high premiums, such as those with driving convictions and young drivers. Designed & Compiled by: 01792 477316 PLATES4LESS www.plates4less.co.uk ill Oi 8||