What is car insurance?

Car insurance is a type of insurance policy that protects drivers from financial loss in the event of an accident, theft or damage to their vehicle. Drivers pay an annual or monthly premium to an insurance company, and in return, the insurer covers the costs associated with any covered claim.

READ: Car insurance guides

How does car insurance work?

When you purchase a car insurance policy, you choose the level of coverage you require and pay a premium to the insurance company. If you are involved in an accident or your car is stolen, you will need to make a claim with your insurer. They will then assess the damage or loss and determine how much they will pay out to you, up to the limits of your policy.

What car insurance add-ons are there?

There are a range of car insurance add-ons available that offer additional protection and coverage beyond the basic policy. Some common add-ons include:

• Breakdown cover: provides assistance in the event of a breakdown or other non-accident-related problems with your vehicle.
• Legal expenses cover: covers legal costs associated with a claim.
• Key cover: provides protection in the event of loss or theft of your car keys.
• Windscreen cover: covers the cost of repairing or replacing a broken windscreen.
• Personal accident cover: provides a lump sum payment in the event of a serious injury or death.

What are the benefits to adding add-ons to your policy?

Adding extra cover to your car insurance policy can offer additional protection and peace of mind in the event of an incident. For example, breakdown cover can provide assistance when you need it most, while legal expenses cover can protect you from unexpected legal fees. Key cover can provide reassurance in the event of a lost or stolen key, and personal accident cover can provide financial support for you and your family in the event of a serious injury or death.

What different car insurance policies are there?

There are three main types of car insurance policies:

• Third-party: the minimum legal requirement in the UK, covering damage to other people and their property.
• Third-party, fire and theft: covers damage to other people and their property, as well as damage caused by fire or theft of your vehicle.
• Comprehensive: the most extensive cover available, covering damage to your own vehicle as well as third-party liability.

How much does car insurance cost?

The cost of car insurance varies widely depending on a range of factors, such as your age, driving history, the type of car you drive, and the level of coverage you require. The average cost of car insurance in the UK is around £471 per year, but this can be significantly higher for drivers who are considered high-risk.

How can you get cheap car insurance?

There are several ways to get cheaper car insurance, such as increasing your excess, reducing the level of coverage, improving your driving record, or shopping around for the best deal. By using an online comparison site like Comparoo, you can compare car insurance quotes from over 110 trusted car insurance providers in the UK, potentially saving up to £334 on your policy.

FAQs:

What is a no-claims bonus?

A no-claims bonus is a discount on your car insurance premium that is awarded for every year that you do not make a claim on your policy.

Can I add a named driver to my car insurance policy?

Yes, you can add a named driver to your car insurance policy, but the cost of your premium may increase if the driver is considered to be high-risk.

What factors affect the cost of car insurance?

Factors that can affect the cost of car insurance include your age, driving history, the type of car you drive, and the level of coverage you require.

What is the difference between voluntary and compulsory excess?

Compulsory excess is a set amount that you must pay towards the cost of a claim, while voluntary excess is an additional amount that you can choose to pay in order to lower your premium

What is a telematics policy?

A telematics policy involves fitting a device to your car that monitors your driving habits, such as your speed, braking, and acceleration. The data is used by the insurance company to calculate your premium based on how safely you drive.

Does car insurance cover theft of personal belongings from my car?

No, car insurance typically only covers damage to the car itself and any injuries sustained as a result of an accident.

Can I cancel my car insurance policy mid-term?

Yes, you can cancel your car insurance policy mid-term, but you may have to pay a cancellation fee.

What is the maximum no-claims discount I can receive?

The maximum no-claims discount varies depending on the insurer, but it is typically around 75% after several years of no claims

Can I change my level of coverage mid-term?

Yes, you can change your level of coverage mid-term, but you may have to pay an administration fee to do so.

What is the excess protection add-on?

The excess protection add-on covers the cost of your excess in the event of a claim, reducing the financial burden on you.

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