Car Insurance

Understanding car insurance is pretty tough when you consider all of the legal jargon used on the policies. You also have to consider the different types of car insurance you can purchase, which makes it even more difficult to understand. The questions and answers we supply below are just a few of the most asked questions individuals like you have about car insurance.

What happens when you are in an accident and you need to make a claim to your car insurance company?

• Anytime an accident occurs it is a good idea to have the police called. They will generate a report and report number for you to provide your insurance company with for the claim. They will record the scene and determine who was at fault for the accident.Still, you will need to obtain the other driver’s insurance information to provide that to your insurance company, as well as make sure that they report the incident. When in an accident your car insurance company will ask you for a statement and supporting documents. From there they will determine who was at fault. If your vehicle needs repairs the insurance company will already begin to make the repairs. Once the fault has been determined they will either bill you or the other person’s insurance company for the repairs.

What “bill’ will the insurance company send you for a claim?

• Car insurance policies have a deductible on top of the monthly premiums you pay. This deductible is often called excess in the UK. You are liable for this excess payment. When the repairs are complete on your vehicle the insurance company will ask for this deductible to be paid.

What Happens if You Were Not at Fault?

• If you are not at fault in the accident the car insurance company will most likely return your excess payment to you. If fault has been determined before the repairs are completed you may not have to pay the excess at all. This will be determined by the car insurance company you are with. Each company has a different way of operating when it comes to claims and the deductible.

How Do You Know If You Have Enough Cover?

• Car insurance is mandatory in the UK. You are required by law to have at least third party cover. You can elect to have more coverage. The more coverage you have on your car insurance policy the less you typically have to pay out in the event of a claim. However, the more cover you have the more expensive the premium. A general rule for determining if you have enough cover is looking at your life style. Can you afford millions in special health care costs? Can you afford to repair the car with your income if you do not have enough cover? Can you afford being out of work with no insurance to cover the loss of income in case of an accident?

The above questions are imperative to finding the right cover.