Car insurance is something you buy to protect your car. An insurance policy it is paid throughout the year. You must make sure that you renew it every year. If you do not you could end up in an accident, and be arrested by the police for not having insurance. Car insurance makes sure that you and other drivers are covered financially–whilst out on the roads.
What are the types of car insurance?
There are three main types of car insurance, these are fully comprehensive, third party, and third party fire and theft. Fully comprehensive cover is also known as “Fully comp,” and is insurance where you are covered for anything that happens to your car irrespective of whether it is your fault or another driver’s fault. If you are fully comp then your vehicle damages will be covered. If you are injured in a car accident and you have fully comp, you may also be covered for any medical treatment you need.
Third party insurance is where you receive the least amount of cover for your car. If you are involved in an accident and it is your fault, you will not receive anything for you or your car. Third party will cover for any damage where you are to blame. Third party fire and theft offers the same cover as the third party insurance, however you are covered if you car is stolen or set on fire.
How to get the best deal for car insurance
It is important when searching for car insurance that you search for the policy that is right for you and your car. Car insurance companies look at your age, where you live, the car you drive, and the amount of claims that you have made in the past. The younger you are then the more you will have to pay, because young drivers, especially males, are statistically more likely to have accidents
If you live in an area with a high crime rate, where cars are frequently stolen and broken into, you will also have to pay more for your insurance as you are more likely to make a claim. The more expensive car is then the more you will have to pay. When an insurance company looks at your application for car insurance they will take into account the amount of claims you have made. If you have not had any claims in previous years, you will not have to pay as much as someone who has made claims in the past.
It is important that you do not choose the first insurance company you look at, because you could end up paying more. Another insurance firm may be able to offer you the same cover for a far cheaper price.
How car insurance claims work
If you ever need to make a claim on your car insurance you should know that the process comes in three parts; the application process which visually involves a phone call to your insurance company. They will send you a claim report that you must fill in with all your details, including driving license and number plate, and must include any details of the other people involved. You must also include the police report so that your claim can be processed easily and quickly.
The second part of the claim process is the investigation process where your insurance company will look at detail of the accident, and find out by using the police report, description from both drivers, and any photos from the accident. The insurance company will conclude upon what happened and who is at fault for the accident. Sometimes there is no fault to be found, but the insurance company must investigate anyway to be sure.
The final part of the claim is the payout that may equal the cost of the repairs for the car if done by a professional repair shop. Medical costs are paid out either to the third party or to both of you–depending on what type of insurance you have on your car. Some insurance payouts will give you a payment equal to the market value of your car, and some insurance payments such as those with GAP insurance will pay off any debt you have on the car.
- License: Creative Commons image source
Laura Ginn was interested in finding out more about classic car insurance quotes so she spent a long time researching all about car insurance in general. She hopes this article has been helpful.