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Insurance companies tend to offer tempting deals for one year then to substantially increase their premiums for the 2nd and 3rd years making them less competitive. They often rely on the inertia of the motorist to renew their policies with them. Click here for a list of some UK Motor Insurance Companies and Brokers. Drivers
from overseas.
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Premiums |
The cost of insuring your car is determined by many criteria: -
The size and performance – a 1000cc runabout will cost less than a BMW or Porsche. Cars are classified into groups from 1 to 20 for insurance purposes, the higher the group the higher the premium.
A typical family saloon will be classified between groups 6 and 12 depending on, for instance, engine performance and desirability (by thieves as well). Different insurance companies will have the same model in a different group so shop around.
Your driving history – taken into consideration are your age and experience, accidents, speeding fines, drink-driving convictions and any other driving convictions.
Where
you live and whether your car is garaged
overnight.
How many are miles are driven each year.
Extras
such as No Claims Discount protection, legal protection and the
cost of renting a car in the event of damage or theft.
Insurance Cover |
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There are 3 levels of cover: -
Third Party only – this is the minimum level that legally
you must have and will only pay for damage to a third party’s
vehicle, not your own.
Third Party, Fire and Theft – in addition to third party
this also covers you for fire damage, theft of your car and, if
it is recovered after being stolen, any damage done.
Full Comprehensive – this will cover the full cost of
repairs to a third party’s vehicle and to your own up to the
market value of your car. You may have to pay the first £100, or
any other policy excess agreed with the insurance company, of any
claim.
No Claims Discount |
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Insurance premiums are high for first time drivers but insurance companies offer ‘No Claims Discounts’ to encourage safe driving.
These discounts range from 30% after one year up to 65% or even 70% after 5 years.
Any claims during this first 5-year period will cause your discount to be reduced to the level of 2 years earlier.
No Claims Discount Protection. Once the full discount has been achieved you can pay a slightly higher premium to protect it in the event of a subsequent claim. Normally 2 claims in a 3 or 5-year period are allowed before your discount is affected.
Insurance Claims and Reporting Accidents |
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Accidents
must be reported to your insurance company as soon as possible.
If another vehicle is involved your names, addresses and insurance
details must be exchanged.
It is an offence not to stop. In the event of personal injury to any party the police will need to be involved.
Most insurance companies insist that you do not admit liability even if an accident was clearly your fault. They will handle the claim with the 3rd party’s insurance company on your behalf.
Theft and Vandalism. You must report theft or vandalism to the police as soon as possible after you discover it. The police will give you a reference number that the insurance company will need.
Further information on breakdowns and accidents can be found
in the
Highway Code. Clients can obtain copies of the Highway
Code from The Relocation Bureau.
3.6.5 - v2.0