Tuesday, June 30, 2009
Car Insurance Questions - Answers to the Top Five Car Insurance Questions
Car insurance can be a complicated affair if you don't truly understand how it works. There is an array of policy options, complicated jargon and difficult wording to understand. Here we answer the most common questions to get you on track.
Do I have to take out car insurance?
The simple answer is: "yes". It is a legal necessity and if you are caught driving without it you could face prosecution.
What are the different levels of cover available?
There are three types of cover to choose from. These are:
Third party only: Covers the policyholder against damage suffered by third parties - such as damage to a car you are involved in an accident with, or any third party property that may be harmed. It also protects you against injury claims from third parties.
Third party fire and theft: The same coverage as third party only but with additional protection for your own vehicle against theft and fire damage.
Comprehensive: The same as third party fire and theft but with further protection for your own vehicle such as if it suffers damage in an accident and requires repairs or replacement. Depending on the policy options you choose comprehensive cover can also protect you against personal injuries; medical expenses; provide a courtesy car; guarantee repairs; protect personal items in your car; and more.
Which level of cover should you choose?
Clearly the more cover you have, the better. However, comprehensive car insurance is more expensive than the alternatives and so you need to weigh up affordability against your individual needs. For example, if you drive an inexpensive car then a year's premiums on a comprehensive car insurance policy could cost more than the car itself is worth - in which case you may be better off with a third party option.
What factors influence car insurance premiums?
A car insurance premium can be influenced by the policy options you choose, the level of cover you require, the vehicle you drive, the security you have in place for that vehicle, where you live, your occupation, your individual driving record and more.
Write by : Alex Gregory
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