Lifestyle

Motorists out on the road in Britain need to have some form of insurance policy to cover them in the event of a car accident. It is an offence to be driving a vehicle without insurance and the relevant authorities can levy big fines if caught.

Bearing this in mind the following section looks at the types of car insurance available today, the laws that need to be adhered to, how to make claims and procedures to follow in the event of an accident.

It is worthwhile shopping around when you are getting a quotation. It is best to ring or search on-line with 5 - 10 companies as the prices they quote can vary greatly.

If you choose to phone companies to get a quotation, the numbers provided by the company are usually freephone numbers. Some individuals select the company they phone purely on this basis as a quotation can take anything between 10-15 minutes to obtain; meanwhile it's your phone bill that tots up! You may find that some insurance companies are able to search for competitive rates from a database of several insurance providers to be finding the best deal for you - saving you both time and money. Although telephoning can take up a lot of time, some people prefer to speak to someone who can answer specific queries and others find it can be quicker than searching on-line especially if you do not have a high speed modem.

You may find that some of the insurance companies you contact may not be able to give you a quotation based on your age; this has become a common characteristic of companies that refuse business from people below a certain age bracket and prefer to take on only experienced drivers.

There are companies that specialise in providing insurance if you drive a performance vehicle or have notched up a number of motoring offences. If you are an older more experienced driver there are also a number of companies that will only insure drivers of the same age and calibre.

There are three types of insurance available; Third Party, Third Party Fire and Theft and Comprehensive.

Third Party covers the required liability insurance required by law. This type of insurance will provide cover for anyone that you may be in an accident with and does not cover you in any form.

Similar terms to that of Third Party however, it also includes cover if fire or theft affects your vehicle.

If your car is lost or damaged as a result of theft, attempted theft, fire, lightning, or explosion, the insurance company will:

• pay to repair the damage;
• replace what is lost or damaged if this is more cost-effective than repairing it;
• or settle your claim in cash.

If your car is less than one year old and you have been the first and only registered owner, the insurance company will replace it with one of the same make and model if it has:

• been stolen and not found;
• suffered damage covered by the policy and the cost of repairing it will be more than 60% of the last United Kingdom list price (including taxes).
• the insurance company can only do this if a replacement car is available in the UK and anyone else who has an interest in the car agrees.
• If a suitable replacement car is not available, the insurance company will settle the claim by one of the methods shown above.
• If the insurance company settle a claim under this clause, the lost or damaged car becomes the property of the insurance company.

• The excess shown in the schedule, unless the car is stolen from a private locked garage.
• Loss or damage to the car and or its contents where possession is gained by any form of deception or fraud.
• Loss or damage caused by theft or attempted theft if the car was not properly locked or if any window, roof opening, removable roof panel or hood was left open or unlocked.
• Loss or damage caused by theft or attempted theft if the keys are left in the unattended car.
• Any amount over £500 or 10% of the market value of your car (whichever is less) for loss of or damage to in-car audio equipment.

The insurance company will not pay more than the market value of the car at the time of the loss or the amount your car is insured for (less the excess), whichever is less.

Comprehensive vehicle policies normally (check the policy) cover all of the above plus any accidental damage to your own vehicle, medical expenses and the loss of personal items within a limit, along with any medical expenses incurred to a specified limit.

You will be covered for your legal responsibility if you have an accident in your car and:

• you kill or injure someone;
• or you damage their property.

This cover also applies to any accident involving a trailer or broken down motor vehicle that you are towing.

If your certificate says so, this policy provides the same cover as the clause above when you are driving any other car as long as it is not a car owned by you or hired to you under a hire purchase agreement. This cover only applies if:

• there is no other insurance in force which covers the same claim;
• you have the owner's permission to drive the car;
• the car is being driven in Great Britain, Northern Ireland, the Isle of Man or the Channel Islands; and
• you still have the insured car and it has not been damaged beyond cost-effective repair.

The insurance company will also provide cover for:

• anyone allowed by the certificate of insurance to drive your car, as long as they are driving the car with your permission;
• anyone you allow to use but not drive your car, for social or domestic purposes;
• anyone who is in or getting into or out of your car;
• your or your husband's or wife's employer or business partner, as long as the car is not owned by or hired to that person and they are not using it for a purpose forbidden by the certificate of insurance; and
• The legal personal representative of any one covered under this section if that person dies.

If any person has an accident that is covered under this policy, the insurance company will pay:

• solicitor's fees to represent any insured person at a coroner's inquest, fatal accident inquiry or magistrates court, as long as they have been agreed beforehand;
• up to £10,000 for reasonable legal services which will be arranged to defend that person against a charge of manslaughter or causing death by dangerous or reckless driving; and
• any other costs or expenses that have been agreed to beforehand.

They will pay: For emergency treatment fees as set out in the Road Traffic Acts. Their right to get back what they have paid. If, under the law of any country, they have to make a payment which they would not otherwise have paid under the policy, they must repay the amount of that payment.

The Certificate of Motor Insurance is issued on acceptance of your policy. The certificate is a legal document and will need to be kept in a safe place. The information contained in this document is important and needs to be read in conjunction with the Guide to Your Cover, the Motor Proposal Confirmation Form and the Policy Schedule, to ensure all details are correct. Your Certificate of Motor Insurance is a legal document that provides you with proof that your car is insured in accordance with the requirements of the Road Traffic Act.

The excess is the amount you pay towards a claim. Choosing to pay higher excess is a common way of reducing your insurance premium, especially if you rarely make a claim, and wouldn't mind a higher excess in return for lower premiums. Most insurance companies will now allow you to choose a voluntary accidental damage of £50, £100, £150 or £250 (in addition to any imposed policy excess) and your premiums will be reduced accordingly. Remember if the claim is not your fault, you can claim back the excess using your legal cover.

If you manage to drive for a number of years without making a claim you will start to build up your no claims discount.

Number of consecutive years without a claim	Discount Applied
1 year	35%
2 years	45%
3 years	55%
4 years	60%
5 years	65%

If you make a claim, your No Claim Discount will be reduced as set out in the scale below.

No claims bonus at time of claim	No claims bonus at next renewal
	1 claim	2 claims	3 claims
35%	Nil	Nil	Nil
45%	Nil	Nil	Nil
55%	35%	Nil	Nil
60%	45%	Nil	Nil
65%	55%	45%	Nil

In return for an extra premium, you can keep your No Claim Discount unless you have:

• more than one claim in a period of cover; or
• more than two claims in any three periods of cover in a row.

If your No Claim Discount has to be reduced, it will be as follows:

No Claim Discount at the start of the period of cover	65%	60%
Number of claims in a period of cover
2	45%	35%
3 or more	Nil	Nil
Number of claims in three periods of consecutive cover
3	45%	35%
4 or more	Nil	Nil

When taking out motor insurance it is wise to spend a little time exploring all of the different policies and the companies offering them. Quite often the price of 5 quotations can vary upto 100 £'s between the highest and lowest so it is worth getting as many quotations as time allows.

Insurance companies are dealing in a very competitive market so they will try and better or match any quote that you may already have. Get the best type of insurance you can reasonably afford. Young people especially will try and save money wherever possible; however it is vital that you are not driving without valid insurance.

The bare minimum is Third Party cover but remember that this type of cover will not protect you or your car, only the person you may be involved in an accident with.

Once you have decided on the company to insure with, and have received the policy documentation, read it carefully and make sure that there are no Inaccuracies - if there are any, they will need to be amended. Once you have your complete policy do keep it in a safe place in the event you may need it.

It is imperative that you have suitable insurance cover before driving on Britain's roads. For help and advice on insurance policies take a look at the websites below:

• Online Motor Insurance
• Modified car insurance
• Car Insurance
• Car Insurance