DNA Insurance

Archive: Jan 2016

  1. A Beginner’s Guide to Minibus Insurance

    Comments Off on A Beginner’s Guide to Minibus Insurance

    Some vehicles require specialist insurance due to the nature of their use or the number of passengers they can carry. This often applies to minibuses which are generally used to ferry people about, whether that be for free or for a fee. Generally speaking the more passengers your minibus can carry, the larger your insurance premium is likely to be.

    In this article we’re going to take a quick look at minibus insurance and when you’re likely to need it.

    What is a Minibus?

    A minibus is defined as a vehicle with nine to sixteen seats, including the driver’s seat. Anything under that will be classed by your insurance provider as an MPV (multi-purpose vehicle) or car and anything over that will be classed as a coach.

    Types of Insurance Associated with Minibuses

    If you own a minibus you need to be very clear on how you plan to use it as this will affect the type of insurance you take out and ultimately your premium. There are different types of insurance you can hold when driving a minibus:

    • Minibus Insurance
      If you’re using your minibus to ferry people from one place to another in a non-commercial situation then you’re going to need minibus insurance. This could be for a charity, church or a school or sports club.
    • Taxi Insurance
      If your minibus is being uses as to transport people for a fee then you’ll need to take out specialist taxi insurance.
    • Van Insurance (Commercial)
      If you are using your minibus for commercial purposes other than as a taxi, then it’s more likely you’ll need to take out van insurance. Van insurance doesn’t include the option of ‘social, domestic, pleasure and commuting’ class of use, so even if you use it just once to get to work you’ll need to have commercial van insurance.

    The important thing to remember about minibus insurance is to make it absolutely clear to your insurance provider what you are using the vehicle for. You should also keep your insurance provider informed of any changes in the way you use the vehicle. Failure to do this could result in your insurance becoming invalid.

    For more information on minibus insurance call and speak to one of our experts today on 03445 732 400 or visit our minibus insurance page for more details.

  2. Car Insurance Jargon Buster (Part 2)

    Comments Off on Car Insurance Jargon Buster (Part 2)

    Car insurance terminology can be confusing and there can be a lot of detail to take in when it comes to understanding the small print. To help cut through the confusing language and decipher some of those mysterious acronyms we’ve put together a two part car insurance jargon buster.

    In this our second part we look at everything from fault claims to write offs. For A-D please click here for part one.

    Fault Claims: When you make a claim but your insurer cannot recover the cost from the third party. This could be if you are deemed to have caused an accident or for other reasons that aren’t your fault but where there is no other known party involved such as theft or vandalism.

    FCA: The Financial Conduct Authority regulated the car insurance industry as well as other financial services companies.

    Green Card: A document that proves to non EU countries that your insurance provider provides the minimum insurance necessary to drive in the country.

    Insurable Interest: This is the basic requirement of taking out car insurance and refers to the fact you have an interest in the vehicle being insured and would suffer a loss if it were damaged.

    Main Driver: The person who drives the car most of the time as stipulated on the insurance policy.

    MID: The Motor Insurance Database is a record of every insured car in the UK.

    Optional Extras: Also known as Add Ons, these are benefits, such as breakdown cover and replacement vehicles, that can be added to your policy for a fee.

    Policy: This is the main document between you and your insurance provider. It will detail all the terms of your insurance, including the premium and term. Not to be confused with the certificate of insurance, which is required by law.

    Premium: The amount paid to your insurance provider to hold the policy. This can be paid in monthly instalments or in one yearly sum.

    Schedule: This document forms part of the contract between you and your insurer and shows things like your excess and any endorsements you might have.

    SORN: Statutory Off Road Notifications can be obtained from the DVLA are required by law if you plan on not using your vehicle and are keeping it off the public road.

    Third Party, Fire and Theft: Will cover your vehicle for theft and fire as well as damage from third parties only.

    Voluntary Excess: This is the fee you pay to your insurance provider towards the cost of a claim. You can set your own voluntary excess before taking out the policy, with a higher excess usually resulting in a lower premium.

    Write off: If the cost associated with repairing your vehicle is more than your insurance company deems the vehicle to be worth then it will be considered a write off.

  3. Car Insurance Jargon Buster (Part 1)

    Comments Off on Car Insurance Jargon Buster (Part 1)

    To the non-initiated, understanding all the ins and outs of car insurance can seem like learning a whole other language. As well as the array of specific terminology there are a lot of important acronyms that it really pays to understand.

    To help you make sense of this confusing array of terminology we’ve put together this insurance jargon buster. This is part 1, with part 2 to follow in January.

    ABI: The Association of British Insurers is a trade body comprised of 250 leading insurance companies and accounts for over 90% of the UK insurance market.

    Act of God: An event which is not the fault of any individual and is unpredictable such as a lightning or meteor strike. Acts of God may not be covered in your policy and are often separate from extreme weather events like flooding or falling trees.

    Betterment: A payment made by an insured party that recognises the fact that their vehicle will be worth more as the result of repairs relating to an insurance claim.

    Certificate of insurance: This is a document that is required by law and shows the car being insured, who is allowed to use the car and the classes of use (see below).

    Class of Use: A term used by insurance companies to determine what you use your car for and how often. There are three classes of use: Social, domestic and pleasure; Commuting; Business use The class of use you select will often have a big bearing on your insurance premium. It’s very important you are certain what class you fall into as supplying inaccurate information could invalidate your policy.

    Comprehensive cover (or fully comprehensive): This will cover you and your vehicle as well as the vehicles of third parties if you are at fault.

    Compulsory excess: This is a set amount you need to pay to your insurer when making a claim. The level of your compulsory excess will depend on how much of a risk you are judged by the insurer.

    Conviction Code: If you commit a motoring offence the DVLA (see below) will add a four digit conviction code to your licence.

    Cover note: A document that shows you have temporary car insurance while your insurer is preparing your policy documents and certificate of insurance. Some insurance companies don’t issue cover notes and will instead issue you with a certificate on the day you accept the insurance.

    Duty of disclosure: When you take out a car insurance policy you have a duty to inform your insurer of any changes in your circumstances, such as change of address or a modification to your car.

    DOC: Drive Other Cars (DOC) is a type of cover that some insurance policies will include and means you are insured to drive another person’s car, with their permission. This will usually only be third party cover and cannot be for day to day use.

    DVLA: The Driving and Vehicle Licensing Agency is the body responsible for issuing licences and collecting car tax for all drivers in Great Britain.