A few Insurance Ground Rules
13 September 2006, 09:17 AM
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A few Insurance Ground Rules
Some obvious and some not so obvious.
I did'nt realise if I had my brothers car say, covered 3rd party and the thing gets nicked, he gets no pay out!
1. Don't hide the truth
If there is any chance that you will make a big claim on your insurance, then the company you've bought cover from will investigate thoroughly. Don't neglect to tell the insurance company about any accidents or penalties you may have incurred in the past. These are what insurers term 'material facts'. If they find out you've lied, you won't receive even a penny when you attempt to claim.
2. Cheap shots
If you have a very cheap car, cheap insurance won't do any harm. But if you have even a moderately expensive motor, you'll wish you'd spent a bit more when it comes to the crunch. When looking at cover check out car loan facilities and quality of accident management. Read the small print and see just how little that money-saving premium is offering.
3. Occupational hazards
If you work in the media, TV or film and are seeking insurance, you may find your premium is sky high. Such industries are renowned for long hours and a certain reputation for hard living. But often it's not because of what you actually do that you're paying through the nose. It is because of who you might know and then give a lift to that causes premiums to soar.
4. You will obey
If as part of your insurance deal, the policy stipulates that the vehicle is garaged overnight, you must comply with the restriction. The reason insurance companies place certain warranty restrictions on policies is to offset their risk. If you don't comply with the policy to the letter, it will become invalid. Just pray your car doesn't get stolen if you bend the rules.
5. Value added
Often when taking out insurance on an older or classic car you'll have to agree a value for the vehicle at the outset to avoid any quibble should there be a payout at a later date. If you've inflated the value at the outset and the insurer investigates, you'll only get what they think it is worth. This can be considerably less than you might ever imagine.
6. To claim or not to claim
There are times when you might not want to trouble your insurers with a claim. If, for example, your car has a mysterious dent in it, think first before picking up the phone. Sure the company will pay out to have it repaired. But what about your no claims bonus? Claim and your next policy will be much higher than you expect. You should definitely consider paying for the repair yourself if the cost is not ruinous.
7. Modification
The Max Power effect shouldn't be ignored. Many used cars these days can have modifications carried out that are not visible but will affect the premium. Tell your insurer of any modifications you know about. If you don't, your policy may become invalid. This includes wheels. The reason? New wheels make your car a target for thieves.
8. Kidology
Put your children on your policy and not only will the premium rise, the excess will grow as well. Instead consider buying them a cheap runabout and let them build their own no claims bonus. If they start when they're 18, by the time they're 22 they'll have the maximum discount.
9. Excess all areas
Looking at the headline price of an insurance policy only tells some of the truth. Look out for any excess areas on the policy. These can be as simple as an excess on any claim you make, but can also include 'accidental damage' 'fire and theft' and, most pernicious of all, 'all sections' excess, which can lead to you paying the first part of a claim should you damage another car.
10. Mates rates
Your insurance policy will almost certainly allow you to drive other cars. But this doesn't include comprehensive insurance. It will only be third party. Just consider this: if your friend lets you drive her car and it is stolen while in your custody, she won't get a penny.
I did'nt realise if I had my brothers car say, covered 3rd party and the thing gets nicked, he gets no pay out!
1. Don't hide the truth
If there is any chance that you will make a big claim on your insurance, then the company you've bought cover from will investigate thoroughly. Don't neglect to tell the insurance company about any accidents or penalties you may have incurred in the past. These are what insurers term 'material facts'. If they find out you've lied, you won't receive even a penny when you attempt to claim.
2. Cheap shots
If you have a very cheap car, cheap insurance won't do any harm. But if you have even a moderately expensive motor, you'll wish you'd spent a bit more when it comes to the crunch. When looking at cover check out car loan facilities and quality of accident management. Read the small print and see just how little that money-saving premium is offering.
3. Occupational hazards
If you work in the media, TV or film and are seeking insurance, you may find your premium is sky high. Such industries are renowned for long hours and a certain reputation for hard living. But often it's not because of what you actually do that you're paying through the nose. It is because of who you might know and then give a lift to that causes premiums to soar.
4. You will obey
If as part of your insurance deal, the policy stipulates that the vehicle is garaged overnight, you must comply with the restriction. The reason insurance companies place certain warranty restrictions on policies is to offset their risk. If you don't comply with the policy to the letter, it will become invalid. Just pray your car doesn't get stolen if you bend the rules.
5. Value added
Often when taking out insurance on an older or classic car you'll have to agree a value for the vehicle at the outset to avoid any quibble should there be a payout at a later date. If you've inflated the value at the outset and the insurer investigates, you'll only get what they think it is worth. This can be considerably less than you might ever imagine.
6. To claim or not to claim
There are times when you might not want to trouble your insurers with a claim. If, for example, your car has a mysterious dent in it, think first before picking up the phone. Sure the company will pay out to have it repaired. But what about your no claims bonus? Claim and your next policy will be much higher than you expect. You should definitely consider paying for the repair yourself if the cost is not ruinous.
7. Modification
The Max Power effect shouldn't be ignored. Many used cars these days can have modifications carried out that are not visible but will affect the premium. Tell your insurer of any modifications you know about. If you don't, your policy may become invalid. This includes wheels. The reason? New wheels make your car a target for thieves.
8. Kidology
Put your children on your policy and not only will the premium rise, the excess will grow as well. Instead consider buying them a cheap runabout and let them build their own no claims bonus. If they start when they're 18, by the time they're 22 they'll have the maximum discount.
9. Excess all areas
Looking at the headline price of an insurance policy only tells some of the truth. Look out for any excess areas on the policy. These can be as simple as an excess on any claim you make, but can also include 'accidental damage' 'fire and theft' and, most pernicious of all, 'all sections' excess, which can lead to you paying the first part of a claim should you damage another car.
10. Mates rates
Your insurance policy will almost certainly allow you to drive other cars. But this doesn't include comprehensive insurance. It will only be third party. Just consider this: if your friend lets you drive her car and it is stolen while in your custody, she won't get a penny.
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