There are three levels of car insurance:
- third party only - the basic legal requirement
- third party, fire and theft (TPFT)
- comprehensive, which adds accidental damage to TPFT.
The following factors affect the premium:
- level of excess - usually there is a minimum
- no-claims bonus, which can be protected by paying extra
- car age, value and annual usage ~ whether the car is used for work ~ number of drivers and their ages ~ whether you have a garage
- whether you have an alarm and/or immobiliser.
- Check these points in the policy wording:
- Does the insurer reserve the right to cancel the policy in the event of total loss?
- Is a replacement provided if your car is under repair?
- Do you lose your no-claims bonus even if an accident is not your fault?
- Are windscreens excluded from no-claims bonus?
- How much cover is there for personal items stolen from the car?
- Are the insured drivers covered when driving another vehicle? (If so, it will be third party only.)
The possible loss of your no-claims bonus means you should consider carefully whether to make a claim for a relatively small loss, but any accident must be reported.
Do you have cover for loss of income due to death or permanent incapacity of the breadwinner in your family?
- Do you know how much statutory sick pay you are entitled to and for how long?
- Is it enough, or do you need insurance?
- What about redundancy pay?
- Do you know your current entitlement?
- Do you need more cover?
- It is dangerous to be under-insured.
- Have you checked your buildings cover recently?
- Have you included additions?
- Have you been round your home to check the replacement value of the contents?
- Are you aware of the provisions in your car insurance for no-claims bonus?
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