What To Expect From Your Car Insurance

Car insurance is essential for all UK motorists but the levels of cover available can vary massively from insurer to insurer. You may think that you get what you pay for – and that the more comprehensive the car insurance cover is, the better the policy. However, when it comes time to make a claim many of us are let down by loopholes and tricks.

Motorists are rightfully encouraged to shop around every year at the time of renewal to avoid being stung by heavy premium increases and to take advantage of the introductory offers available from insurers. However, you must look beyond price and thoroughly check each insurer’s terms and conditions.

What should you expect from car insurance?

In the UK, there are three types of car insurance available – third party only, third party fire and theft and comprehensive cover. Third party is compulsory and will cover you for hurting someone else or damaging their car. Third party fire and theft includes coverage if your car is burnt or stolen. Comprehensive policies meanwhile vary greatly dependent on the level of cover you choose and can include features such as accidental damage, a courtesy car, breakdowns, lost keys and repairs.

Clearly if you opt for third party only then the expense of car insurance is more important to you than the level of cover itself. If you have a comprehensive policy however, then you must make strategic choices about what policy options to include – think about how important each aspect is to you as you will pay for them in your policy. For example, you may not wish to have a courtesy car if your existing vehicle is forced off the road because you may already own a second vehicle. Opting out of these choices should save you money with the insurer.

In return for the cover they offer however, car insurance companies expect to build an assessment about your risk level on which they base premiums. That is why honesty is paramount with insurers. If an insurer finds you have lied about an aspect of your policy then it will almost certainly invalidate your claim.

How do car insurance companies catch you out?

Motorists rightfully look for ways to save cash on their car insurance premiums – such as by enhancing the security of the car, taking an advanced driver’s course or driving only at certain times of the day. This reduces your risk level to the insurer, but there’s no point in lying about any of these aspects because your provider will catch you out at claim time – meaning you’ve been paying premiums for nothing.

One of the most common ways to save money is to agree to park your car in a garage at night. However, if you then fail to do this and your car is stolen overnight your insurer will invalidate your claim. The same applies if you have failed to install car alarms or immobilisers that you have told the insurer were in place.

A no-claims discount can also be frustrating. You lose your discount when you have an accident even when it is not your fault and you will have to pay the excess unless you can recover it from the other driver. This means you could be out of pocket if someone vandalizes your car even though you weren’t involved at all.

If your car is written-off, watch out for insurers that only offer the trade value for the vehicle. Depending on your policy, you may be entitled to the equivalent make and age of the car and that is often significantly more expensive than the trade price.

Also be wary of policy excesses when you’re shopping around. Many insurers have a standard excess, typically in the region of £100 - but others set the bar much higher. You should ensure the excess is at a level you can comfortably afford to pay should an accident take place.

How can you battle back against car insurance tricks?

Honesty is crucial for car insurance – keep your insurer informed about any change to your car (such as vehicle modifications) or to your circumstances (including your address and employment) so insurers can make fair assessments of your premiums. If you do this there will be no excuse to invalidate a claim.

Also be wary of no-claims discounts and don’t buy a car insurance policy purely because the discount is high, as it can be wiped out easily unless you take out no-claims protection. Instead shop around for cheap car insurance online and find the most cost-effective policy with the level of cover and conditions you require.