Motor Insurance FAQ
January 24, 2014How motor insurance works and questions that are frequently asked by our clients:
If you own a motor vehicle you are legally required to have motor insurance in place. Unless you officially declare your vehicle off the road you are still required to insure it.
Motor insurance is required for any vehicle that is driven or kept on the public highway and includes:
- Cars
- Vans
- Motorcycles
- Lorries
- Special type vehicles such as ice cream vans, tractors, funeral cars
When you purchase an insurance policy you typically make either an annual payment or regular monthly payments.
Cover types available
- Comprehensive (COMP)
- Third party fire and theft (TPF&T)
- Third party only (TP)
Third party fire and theft – what does it cover?
Third party, fire and theft (TPF&T) cover will allow you to claim for damage to your vehicle as a result of an attempted theft. This can include the theft of your car stereo. The cover will also allow you to claim for damage as a result of fire, for example if your vehicle was stolen thieves may abandon your vehicle and set it alight to destroy any evidence. It can also apply to other potential fire damage.
I have third party fire and theft cover – my window was smashed but nothing was taken – am I covered for this?
In this case where a window was smashed in an attempted theft, and nothing was taken, your TPF&T policy may not cover you. This is because it may be viewed as a windscreen or window claim rather than theft. In this case, you are very likely to be covered by a comprehensive policy.
Third party only cover – what does this cover?
Third party car insurance is the absolute minimum level of insurance cover compulsory by law. It means that reimbursement will be provided to third parties should you cause damage to their vehicle or property. It will also cover any liability for injury to other people; this will also include your passengers.
For example, if you drove into the back of someone else’s car and damaged the vehicle, your policy would pay out to cover their costs and meet any compensation payments that are awarded to the injured third party.
Do all motor insurance policies come with a courtesy car if the cover is fully comprehensive?
If your vehicle needs repairing your policy may provide you with a courtesy car as standard, however some other insurance companies ask you to pay extra for this so if you do require this cover then you should check with your insurance company to ensure the policy meets your needs.
What’s the difference between a compulsory excess and a voluntary excess?
A compulsory excess is the amount that is set by the insurance company that you will have to pay towards each and every claim. In car insurance, this figure may vary according to the age of the driver, type of car, and even the kind of claim. For example young drivers, who are considered to be more high-risk, often have to pay higher compulsory excesses than their older, more experienced drivers. A voluntary excess is something that the customer chooses to pay in the event of a claim. In return for opting for a higher excess, the insurance company will typically lower the premium. The only thing to bear in mind with this is that the voluntary excess will always be paid in addition to the compulsory excess. So if you have a compulsory excess of £200, and then choose to have a voluntary excess of £200, you will have to pay a combined sum of £400 towards any claim you make.
Will my no claims bonus be affected if I have a non fault claim?
This will depend on whether your insurance company can reclaim your damage costs from the other driver involved in the incident. If the other party accepts liability their insurance will pay to cover your repair work then your insurance will be unaffected and your no claims will stay in place.
However, if you need to put the claim through your insurance there is a possibility that your no claims discount would be affected.
What insurance companies do you use?
We use a wide variety of insurance companies for motor insurance, including Aviva, Liverpool Victoria, Ageas, Zurich, Allianz, however our main insurance company we use is called Markerstudy – We have a price match facility in place for all clients within a 25 mile radius from our office where we are able to price match and sometimes beat any insurance quotation we see in our offices. * This is subject to terms and conditions and isn’t available to everyone.
Can you offer instalments?
Yes, we can organise the premium to be paid by instalments, using a third party company called Premium Credit. We require a 20% deposit and your premiums will then follow on a monthly instalment plan for the next 9 payments. There is a 10% charge on the remaining balance once the deposit has been paid.