Tag Archive: premium

  1. Car Insurance Jargon Buster (Part 2)

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    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.

  2. Car Insurance Myths Debunked

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    There are a lot of pervasive myths when it comes to car insurance and car insurance companies. A lot of them are born out of simple misunderstandings that then get exaggerated. Others may only apply to the majority of insurance companies but aren’t a hard and fast rule.

    Below are some common car insurance myths debunked.

     

    • Personal property in my car is covered
      Although your car insurance will cover you for the theft of your vehicle and any damage sustained to it as the result of an accident or a criminal act, any personal property you have in the car is not covered. That’s worth bearing in mind next time you leave your expensive golf clubs in the boot.
    • Courtesy cars are standard on car insurance policies
      Some insurance policies will include a courtesy car as standard but many others will only offer this service as an optional extra, whilst some won’t offer it at all. If you take an insurance policy out with us at DNA we will supply you with a replacement vehicle if the accident wasn’t your fault.
    • I can keep my costs down by becoming a named driver on my parent’s insurance
      Becoming a named driver on someone else’s insurance policy means you cannot be the main driver of that vehicle. This is often done by parents to keep insurance costs down for a son or daughter who has just passed their test and is known as ‘fronting’, which can land you with a large fine and six points on your licence. For a young driver this means a ban.
    • A speeding ticket will automatically cause my premium to rise
      This isn’t always the case and will vary from insurer to insurer. Quite often three points on your licence will have no bearing on your premium, although multiple points may start to see your insurance costs rise.
    • I won’t be able to get car insurance if I have a driving conviction
      Although many insurance companies won’t insure you if you have a conviction for a driving offence like drink driving that doesn’t mean you can’t get insured. At DNA Insurance we offer insurance to drivers with criminal or motoring convictions.

     

    There are a lot more myths concerning car insurance but like so many things in life it pays not to believe everything you hear and take the time do a your own research. You never know, you might be pleasantly surprised.

    If you have a motoring conviction or have been banned from driving in the past, visit our Convicted Driver Insurance page to see how we can help you get back on the road. Alternatively give one of our friendly team a call on 03445 732400.