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10 of The Most Common Questions About Car Insurance Answered

When you learn to drive, you will of course be shown how to operate a car, but an instructor will seldom touch upon the intricacies of owning your own car, especially insurance. For those who have not owned a car before, the process of taking out an insurance policy can be wrought with danger. For example costs can change depending on car type, location and experience, which are just some of the reasons why some drivers pay more than others for car insurance. To find out info about costs and more, here are 10 of the most common car insurance questions answered.

Do I Need Insurance?

The answer is yes you do, any driver with their own car must have car insurance by law, and you could face fines and criminal charges if you don’t.

What Policy Should I Choose?

Here are the different policy types, weigh up the benefits and disadvantages of each, in line with your needs, before selecting the best for you.

Third PartyBudget option offering basic cover

Third Party Fire and Theft – Basic cover with the addition of cover to fire damaged or stolen cars

ComprehensiveComplete cover against all damages or incident to the vehicle

What is Telematics Insurance?

Telematics insurance is an insurance which monitors your driving behavior in order to assess how much of a premium that you will pay. This is a common type of insurance amongst young drivers where the driving style is tracked by a mobile app or a box fitted to the vehicle.

What Influences Price?

In short, the cost of your insurance is about how much risk you offer the insurer, be that through youth and inexperience, a highly modified vehicle or through having a history of being involved in accidents. You can also expect a higher price based on your geographical location, or the cost of your vehicle.

What Is My Excess?

The excess on your insurance premium is how much you will have to pay the insurer upon making a claim. For example if you are involved in an accident, this may cost you $200 for your excess, and then the insurer will cover the cost of fixing the car, usually a higher cost than your excess.

How to Keep Premiums Low?

The best way to keep premiums down is to become a low risk customer for the insurance company. You can do this through maintaining low mileage, switching insurers each year or opt for a higher voluntary excess.

What is a No Claims Bonus?

Each year that you don’t make a claim, you will accumulate a bonus, which can save you money on the following year’s insurance.

What Extras Can I Get?

Insurance companies will offer you add-ons to your policy such as a courtesy car if yours is unavailable, cover to drive abroad, personal accident cover, windscreen cover and even legal assistance. The choice as to whether you want these will be entirely yours, but speak with an insurer to find out more about them.

Where to Find Car Insurance?

The best place to get a quote for car insurance is online, through a comparison site, once you have found a policy you like, complete the rest via phone so that you can ask plenty of questions to ensure you get the right insurance for you.

Spend some time on selecting your car insurance in order to get it just right.

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