General Accident Car insurance is mandatory in the United Kingdom. Unless you have a valid insurance policy, you are on the wrong side of the law. It would be best if you bought an insurance policy before driving your vehicle out of the showroom. Three types of car accident insurance are available on the market. You need to buy the one that suits your needs and budget.
Types of General Accident Car Insurance
This is the bare minimum you could opt for. It offers you coverage against damage to the health and property of others by you.
In this case, the third-party includes not only other vehicles and their occupants but also any public property that your car might have damaged.
There is no coverage for your or your co-passengers treatment or any damage to your car. You have to meet such expenses out of pocket.
Third-Party Cover Including Fire and Theft
This type of policy includes all the terms and conditions of third party cover and pays for any damage to your car by fire or replacing it in case of theft. Of course, the replacement would not be a new car but the vehicle’s depreciated value as per records.
Comprehensive coverage is the best and obviously the most expensive. It includes coverage for your vehicle and occupants, other vehicles, and its occupants.
Besides, you mitigate other scenarios that cause expenses:
- Inclement weather
How to Buy Affordable Car Insurance
Unlike life insurance, car insurance rates are not set in stone.
Several factors affect it, including – make and model of the car, your track record as a driver, and of course the number of previous claims made.
An older driver with an established record driving a dependable vehicle would need to pay less premium than a 21-year-old in a sports car.
Adopt these tips to lower your insurance premium.
1. Reduce your risk profile
Insurance is a matter of risk assessment. Lower the risk, lower the premium. It helps if you fit your car with an approved alarm or immobilizer device.
To reduce the risk of theft, park it in a covered area such as a garage. In the UK, Thatcham Crash Laboratory issues approval for alarm and other anti-theft devices. Unless you buy such an approved device, your insurance provider might not lower the premium.
2. Drive a low insurance vehicle
Smaller cars such as Volkswagen Polo, Hyundai i10, Skoda Citigo, Ford Fiesta attract low insurance premiums. The Association of British Insurers (ABI) publishes a list of insurance Group One cars that are cheap to insure.
Of course, most of these are small vehicles and usually hatchbacks. As you move to larger vehicles such as sedans and grand tourers, expect the insurance premium to rise commensurately. There are 50 different car groups based on new vehicles’ retail price, the cost of repairs, security features, etc.
3. Choose annual payment
General Accident Car Insurance is a business, after all. Like all other businesses, insurers too prefer certainty. That is why you get a hefty discount if you buy an annual plan instead of one where you pay monthly.
Many drivers prefer a monthly plan because of the smaller outgo, but they are substantially more expensive in the long run. Since motor insurance is the third most significant cost of car ownership after depreciation and fuel, it helps to saves every penny.
4. Negotiate for a better deal
Do not settle for the cheapest insurance product. That does not turn out well. Instead, do your research.
Obtain quotes from 2-4 different insurers and examine thoroughly the terms they offer. Often you would find that an insurance policy that is slightly more expensive gives you much more benefits. Above all, do not be shy to ask for a discount. If you are a young driver, a reduction might be difficult but not if you have a ten-year safety record.
5. No Claim Bonus
Most vehicle owners do not have a clear idea of no claim bonus. If you do not make any claims against your policy for a few years, you begin to receive a no-claim bonus.
The greater the number of years that you do not make a claim, the larger it grows. It can be quite substantial if you are a safe driver. The net result is you can avail of a larger sum insured. You also have access to cheaper policies when you buy a new vehicle.
It might make sense to pay a small amount out of pocket if you are protecting a no claim bonus that is substantial. If another vehicle dinged your door, perhaps you should think twice about paying upfront or claiming it.
Note that such an accumulation does not happen forever. These types of benefits tend to have a shelf life. Ask your insurance provider the details of how much you are allowed to accumulate.
Driving in Europe
Usually, your car won’t be going farther than in Europe. Most of the policies offered in the UK also cover the EU.
It is important to note, however, that such cover is rarely comprehensive regardless of the type of policy you own in your country of origin.
There are opt-ins that allow you to increase your cover while driving abroad. These specialized clauses do not last an entire year but rather a few months.
Nearly all policies would have a copayment clause that is also known as excess. If you have a claim of £900, your insurer may pay £700, leaving you to meet the rest.
The main purpose of this is to reduce the number of claims you make. After all, if everyone always claimed, the premium would be passed on, and in the end, the policy would be considerably more expensive. An excess is the insurers’ way to rein in too many claims.
An excess may be voluntary or mandatory. If your voluntary excess is high, the insurer will charge less premium. But keep in mind that in case of a serious accident, the expenditure might be high.
General Accident Car Insurance-FAQs
Is car insurance an “any-driver” policy?
Unfortunately, such a product is not available. The insurance is for the car and its named driver. If anyone else drives the vehicle, the insurance is voided. You should never try and hide such a fact from the insurance company.
2. Can I insure with two different providers?
Your vehicle cannot be double insured. At any time, only a single policy from one insurer can be allowed to operate. Any attempt to double insure a vehicle is not legal.
3. How does a tracking device work?
A tracking device does not operate always. This is to maintain your privacy. Once you report your car as stolen, it is turned on and helps the police to locate the stolen vehicle. Do not worry that the places you visit are constantly being snooped on.
4. Am I covered to drive other vehicles?
If you buy comprehensive coverage, you are provided with basic third party insurance when driving other vehicles. Of course, you have to check your policy to find if this general clause is excluded in your case. While policies are from a template, you might have opted out of a clause for affordable premiums.
White Recovery provides the best and cheapest car insurance for all your needs.