UK Car Insurance
Types of Insurance Cover
UK Car Insurance Explained - What It All Means (Part 1)
By Duncan Hall
With so many new car insurers popping up in the UK, it's becoming increasingly difficult to know which one is right for you.
Is it always best to go with whichever company can offer the lowest price? Do all the companies offer the same services as each other?
With this in mind, it seems important to have a good understanding of just what all the insurance terms and "jargon" really mean. After that, you can make a more informed decision on which company can offer the best car insurance at a price you want to pay.
In this first part we will be looking at the conditions of the cover given and also its boundaries for what is and what isn't covered.
The "vehicle use" section of your policy outlines what you are entitled to use your vehicle for. It is generally broken down into the following categories.
Social, Domestic & Pleasure Excluding Commuting - As the title implies, this allows driving your car for social purposes (visiting family, meeting friends), Domestic purposes (driving to the shops, dropping kids at school) and for pleasure (travelling, going out). It implicitly excludes commuting and therefore is not suitable if you plan to use your car to drive to and from work.
Social, Domestic & Pleasure Including Commuting - As you might have guessed this is identical to the above use but includes using your car for driving to a single, fixed place of work. This is the type of cover that suits most people and you should choose this even if you plan to only drive to work occasionally.
Business Use - For business users and those that commute to various places of work (different offices, regular meetings etc). This type of cover includes everything stated above but allows use of the vehicle for commuting to more than once place of work, and journeys such as visiting clients/associates. There are 3 different classes of business use:
Business Class 1 only permits the regular driver and their spouse use of the vehicle. Any other named drivers may only use the vehicle for Social, Domestic & Pleasure.
Business Class 2 permits any named driver to use the vehicle in connection with the business of the main driver.
Business Class 3 permits the transportation of light goods which have already been purchased, for example flowers or pizzas.
Commercial Use - This covers use of your vehicle for the transportation of goods or passengers for reward,
or if you hire out the vehicle or use it for paid driving instruction. It also includes details set out as for Social, Domestic & Pleasure.
Generally, SD&P excluding commuting is the cheapest, rising to Commercial Use as the most expensive, as each increase of use increases the risk of making a claim. However, you must make sure you choose the category that suits your needs best; if you use your vehicle for any purpose other than that for which you are insured, you may find yourself in trouble!
Level Of Cover
There are three levels of cover available when buying car insurance, which should be fairly familiar to you.
Third Party Only Cover - This is the minimum cover you can purchase to be allowed on the roads. It provides cover for third parties in the event of an accident, for example other drivers, pedestrians, owners of property that might be damaged etc. This type of cover will NOT pay for any damage to yourself or your vehicle. This type of cover is most suitable for low value vehicles.
Third Party Fire & Theft - Includes all cover mentioned above, with the inclusion of cover against fire and theft. In the event of a fire, not related to a motoring accident, or if your vehicle was stolen, you would be covered by your policy. It is worth noting that "theft by deception" is usually not covered by your insurer. This would include being mislead into selling your car without receiving any payment.
Comprehensive Cover - This, unsurprisingly is the most comprehensive cover available. Comprehensive cover is compulsory for vehicles worth over £1000. It includes everything mentioned above, but also covers damage to your own car. If you are involved in an accident for example, your policy would cover damage to third parties and any damage to your own vehicle. It DOES NOT however cover any personal injuries suffered or medical expenses incurred, which is why it can sometimes be misleading to refer to it as "fully comprehensive".
Your policy can cover provide cover for one of the following:
- only yourself;
- yourself and a set of named drivers;
- in some cases, any qualified driver possibly over a certain age.
When buying your insurance you will need to let your insurers know the details of anyone who is likely to drive the car. In particular
they will want to know their age, occupation, experience and any claims or convictions they may have had.
Many policies will offer "driving other cars" cover for driving a vehicle that is owned by someone else. However, when driving other cars, cover will be limited to Third Party Only, even if your policy provides comprehensive cover.
The next part of this article will look at excesses and extras that can be added on to your premium.
For further information and detailed advice about Car Insurance visit QuoteA.Co.Uk.
Article Source: http://EzineArticles.com/?expert=Duncan_Hall
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