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Car Insurance protects you, your vehicle and other drivers around you against liability in the event of an accident. It is a legal requirement to be covered by insurance in order to guarantee compensation is available in respect of injury to other people and damage to other people’s property from an accident. The primary use of car insurance is to provide financial protection against physical damage and injury resulting from traffic accidents. Car insurance can however additionally offer financial protection against theft of the vehicle and possible damage to the vehicle sustained from things other than traffic collisions.

Comprehensive car insurance cover is the most beneficial coverage as it includes additions such as providing a courtesy car while your car is being repaired, legal expenses insurance to recover your uninsured losses, roadside recovery schemes and vehicle repairs in case of breakdown. The advantages of ensuring that you have car insurance outweigh the cons as if you are uninsured not only are you breaking the law but uninsured motorists are an increasing burden on the economy and injuring people, sometimes fatally, every year. A recent report showed that uninsured motorists cost the economy over £500 million every year. Those who are caught driving without insurance face steep penalties such as having their vehicle impounded, a fixed penalty, collection charges and 6 points on their licence.

Car Insurance is Extremely Important

It is essential that you have car insurance if you own a vehicle. Even if you think you can’t afford insurance as it can be difficult to manage the high cost of car insurance premiums it is important to make vehicle insurance one of your high priority bills. If researched thoroughly your coverage can be reduced to the bare minimum through cheaper car insurance rates and extra service fees are easy to avoid by ensuring that payments are completed on time. A potential accident or traffic violation will cost you more in the long run if you are not fully covered. Car insurance can be bought in a number of ways, some companies deal directly with customers while others offer products via insurance brokers who are able to give you advice and recommend a variety of products to guarantee that the right choice is made to suit your circumstances. Insurance brokers shop around on your behalf to find the best quote available from the companies they deal with.

Personal information regarding vehicle details, use of the vehicle, ages and occupations of the people who will be driving it and any previously gained points or convictions for driving offences are required for a quote. Upon accepting a quote insurance documents will be sent which include the certificate, the policy and the schedule. The certificate proves that the vehicle is insured and the details of the auto insurance such as the names of the drivers insured and the dates for which the policy is valid. It is important that this document is kept safe and looked after as this is the document that provides legal evidence of insurance cover and is required should an accident occur. The policy sets out in full the terms and conditions of the insurance cover and finally the schedule gives details

Beware of New laws regarding Car Insurance

The new vehicle insurance law means that the registered keeper of a vehicle must keep it insured unless they’ve made a Statutory Off Road Notification (SORN). If you are driving a vehicle without car insurance and haven’t made a SORN you could face a penalty. Insurance Advisory Letters are issued by the Motor Insurers’ Bureau to the registered keepers of uninsured vehicles. This follows a check of the Motor Insurance Database (MID) – the UK’s central record of vehicle insurance. The letter advises the registered keeper that their vehicle appears to have no insurance and that without car insurance the registered keeper could receive affixed penalty from the DVLA or in a worst case scenario face a court prosecution with a possible maximum fine of £1000. It is important to note that the payment of a fine does not replace the need for insurance.

The British Insurance Brokers Association (BIBA) suggests that drivers can save money on their premiums by considering a lower car group. In other words if the vehicle is in a lower car group (the lowest group being 1) then money can be saved on insurance. Passing the pass plus test can result in a 30% saving on car insurance especially for a young driver. The pass plus test entails learning to drive in the dark, on the motor-ways and in general tougher conditions than experienced previously. Earning no claims bonuses can be advantageous, again in particular for young drivers. By earning the first year’s no claims bonus a young driver may be able to receive a 30% reduction in their next vehicle insurance premium. Limiting mileage and using an insurance broker are also beneficial. As mentioned before an insurance broker will be able to match the driver with the insurer who is best suited to their needs to achieve the most competitive terms. In addition opting for third party, fire and theft cover as opposed to comprehensive cover can save up to 40% on a premium. However it is essential to remember that while comprehensive cover will repair your car after a collision, third party, fire and theft policies are precisely that – covering only the third party and fire or theft incidents. Final tips include making sure that you can afford the excess as this is the first part of a claim that you must pay for and letting sure the insurance company knows about any modifications made to your vehicle.

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