Car Insurance - Frequently Asked Questions
Car Insurance is one of Clever Zebra’s favourite subjects!
We recommend gaining a full understanding of all the issues that you are likely to face so that you can decide which factors are important to you when you come to choose a policy.
Here are some common questions.
2. My car was smashed up and I was completely innocent. Why do I have to lose my no claims bonus?
5. When does my cover start and can it be backdated?
6. Do I have to tell my insurer about an accident even if I don’t intend to make a claim?
7. How does a No Claims Bonus work?
8. Is excess included in all policies?
1. My car has been written off and my insurance company is offering hundreds of pounds less than I paid for it. Why?
Your insurance company will pay for the value of your car at the time of the accident.
Tip: If you are unhappy with the amount being offered by your insurance company you can do any of the following to see if they will revise their value.
· Show current adverts of similar vehicles
· Use price guide pages to demonstrate the value of your vehicle.
· Pay for an independent engineer to look at the wreckage and give an estimate for the pre-accident value. Before you pay for an engineer to look at your car make sure that the engineers’ fee justifies what you might gain in the increased offer from your insurer.
2. My car was smashed up and I was completely innocent. Why do I have to lose my no claims bonus?
Unfortunately, a no claim bonus doesn’t mean a no blame bonus. Any claim on your policy means that your insurance company can reduce the concessions that you receive.
Tip: If there is only a small amount of damage to your vehicle it might be worth paying to get the repairs done yourself, rather than involving the insurance company. This way might be a surprisingly cheap way to avoid losing your no claims bonus.
3. My car has been damaged by a roof tile blowing off my neighbours’ roof. Clearly they should be responsible for the damage costs. Is this right?
It surprises many people to hear that the fact that your neighbours owned the roof tile isn’t sufficient to make them responsible for the damage to your car.
Consequently, legal matters take precedence in such an incident. If you want your neighbours to cough up for the damage to your car then you should consult a solicitor to see how likely it is that you will be able to successfully sue them.
Tip: Consider your options. Getting involved in a legal case can be stressful. If you don’t have fully comprehensive cover, only a successful case would reimburse any damage costs.
Details of who can drive your car will be clearly laid out in your policy agreement. As a guide, if you are under 25 the policy may restrict driving to you or named drivers. Outline your specific needs to the insurer before buying a policy.
5. When does my cover start and can it be backdated?
You are usually covered from the time you buy your policy (you will be sent confirmation of when your cover starts from your insurer). Insurance cannot be backdated.
6. Do I have to tell my insurer about an accident even if I don’t intend to make a claim?
Yes. Be sure to report all accidents, fires and thefts to your insurer even if you don’t wish to make a claim.
7. How does a No Claims Bonus work?
If you have had an insurance policy for one year and not made a claim you will usually receive a No Claims Bonus (NCB). Discounts on average for one year are around 30%. If you have four or more years of No Claims Bonus you can receive approximately 60% off your insurance premium.
8. Is excess included in all policies?
No. Excess usually relates only to accidental damage and theft claims. Frequently there is an excess payment of £50 or £100. If you are young or inexperienced the excess payment is often more expensive.
ULR stands for Uninsured Loss Recovery and is sometimes known as Legal Expenses Insurance. If the you were involved in a non-fault accident where the third party is known, ULR will cover you if you need a hire car while yours is being repaired, have been injured or want to claim back your excess.