Insurance
Ok, so nobody likes paying out large amounts of cash every year to insure their pride and joy but no matter how much it costs we all have to have it and only an idiot would drive around without it.
In effect you are buying something which until you come to claim you have no idea if the insurance company you bought it from are any good or not. Some insurance companies will pay out straight away with no problems which is what you want, after all you’ve just either damaged or lost your pride and joy and the last think you need is the company you pay every year just in case this happens giving you the run around, and adding to your problems even more, but their are companies that do just this.
Be careful of cheap quotes because cheap doesn’t necessarily mean best, it could be cheap because they view you as a low risk or it may be because they dont pay out on their claims, so shop round and be aware.
If you are confused by the special language the insurance companys come out with, then take a look below.
Premium:
This is the amount you pay for a years insurance.
Excess:
This is the amount you pay towards a claim.
Third Party (including Third Party Fire & Theft):
This form of cover only covers you for damage to someone elses property but not yours. If you have an accident and its not your fault then your insurance company can claim the costs for the repair of your vehicle from the 3rd partys insurance company, if it is your fault then your insurance company will only pay for the repair of the car you hit. Third Party Fire & Theft is the same as third party but with fire and theft included on the policy, so if your car is stolen or is damaged due to fire then you can claim for this also.
Comprehensive:
Comprehensive cover includes all of the third party fire and theft cover and your insurance company will also payout for damages to your own vehicle.
No Claims Bonus (NCB):
If you dont make a claim you are given a discount per year up to a maximum of normally 5 years or 60%. If you make a claim and it was your fault then your insurers will usually deduct 2 years NCB per claim. Most companys will offer No Claims Protection when you have acquired 3 years NCB and/or are 25 years old, this normally costs 5% of your premium and allows you to normally make 2 claims in 3 years without losing any No Claims Bonus.
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