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Car Insurance: Frequently Asked Questions

Q) Before I enter my personal details on the Internet site, how can I be sure that no one else will be able to read them?

A) Security is always uppermost on everyone's mind, especially when the Internet is a comparatively new channel through which to conduct private transactions. Most companies usually advertise the level of security (in the form of encryption technology and Secure Socket Layer - SSL) on the early screens and by checking these are in pl ace you can be reassured that your transaction will be as safe as any credit card transaction over the telephone.

Q) If I own a modified or classic car, who will offer insurance cover?

A) Specialist cars require specialist cover to take into account the high price of replacement parts and skilled labour necessary if the car is involved in an accident. The Internet offers details of companies who can offer this type of insurance with the benefit of online application.

Q) Why do insurance premiums vary between companies and how many companies should I approach to get the best deal?

A) Insurance premiums vary between companies depending on the type of insurance you need, your age, the car make, model and age and even where the car is parked overnight. The way different companies rate drivers and premiums, using these risk factors, can affect what you have to pay by as much as £200 in some cases. This makes shopping around a very worthwhile exercise and you could save considerable sums of money.

Q) How do I reduce my premiums?

A) Hints to reduce your premiums include garaging your car overnight rather than leaving it on the drive, fit insurance approved anti-theft devices, consider Third Party Fire and Theft for older cars and check for discounts offered by the insurance provider when requesting quotes. Young drivers (under 25), who are often charged extremely high premiums, should consider increasing the excess and they should also check the insurance grouping before deciding which car to buy.

Q) What does 'excess' mean?

A) A. An excess can be voluntary or compulsory and is the amount you will have to pay if you need to make a claim for loss of or damage to your car. Where any accident or loss is your fault then the excess will have to be paid by you. Where someone else causes the accident you may be able to reclaim the excess through the legal cover, which can be taken out with your car insurance policy.

Voluntary excess is the amount you agree with the company and can influence any premium discounts that you may be offered. Compulsory excess is imposed, usually in the cases of young drivers, and may be the only way a company will agree to insure a driver.

Q) What is legal cover?

A) A. Legal cover is available as an optional extra with most car insurance policies and the benefit to the customer is usually very similar. Legal cover provides the expertise and assistance required to recover uninsured losses such as medical costs, loss of earnings and excess payments where the fault was not yours. For the small additional premium cost this cover provides valuable peace of mind and essential legal advice in claim cases.

Q) I have had company car insurance for the last few years and wish to opt out of the company scheme. Will insurance companies credit me for years of No Claims driving on the company policy?

A) More and more people are choosing to opt out of company car schemes but insurance companies still vary as to the No Claims Discounts they offer. However, providing you can supply documented evidence from your employer that you have made no claims against the their policy, most insurance companies will now take this into account and credit you with a No Claims Discount. Some insurance companies are actually promoting this in order to attract new business from this rapidly expanding group so shop around and you may be able to find some good deals.