Car insurance explained

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Car insurance explained

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It depends on the type of policy you have, but car insurance typically covers your vehicle, the damage that you might cause to other vehicles, to the property of other drivers and to other motorists generally. However, car insurance can include, or can be extended to include, cover for a host of different items, including personal belongings, medical expenses and breakdown assistance – PowerPoint PPT presentation

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Title: Car insurance explained


1
Car insurance explained
2
What does car insurance cover?
  • It depends on the type of policy you have, but
    car insurance typically covers your vehicle, the
    damage that you might cause to other vehicles, to
    the property of other drivers and to other
    motorists generally.
  • However, car insurance can include, or can be
    extended to include, cover for a host of
    different items, including personal belongings,
    medical expenses and breakdown assistance

3
What are the main types of car insurance?
  • There are three main types of car insurance
    policy
  • Third party
  • Third party is the lowest level of cover,
    protecting you against damage that's caused by
    you or one of your passengers to others. That
    includes damage to other drivers and their
    vehicles as well as accidental damage to
    lampposts and walls. Third party does not cover
    your own car you'll have to foot the bill for
    any damage yourself.

4
  • Third party, fire and theft
  • Third party, fire and theft covers everything
    included in third party cover, but it will also
    pay to repair or replace your car if it's stolen
    or damaged/destroyed by fire.
  • Comprehensive car insurance
  • Comprehensive car insurance is the widest level
    of coverage available, including third party and
    third party, fire and theft, but also covering
    wider damage to your own vehicle. Some policies
    will also cover you to drive the cars of others
    and sometimes hire cars but usually only up to
    third party level.

5
How is my car insurance premium worked out?
  • Insurers set the amount you'll pay based on a
    number of factors, including your record as a
    driver, your personal circumstances and your car
    itself.
  • For example, if you're an older driver with years
    of experience, living in a relatively safe area
    and driving a sensible car, your premium will be
    relatively cheap. However, if you're a young,
    inexperienced driver with a high-performance car,
    the cost of your cover will be much higher.

6
What is an excess?
  • An excess is the amount you pay towards any claim
    you make on your car insurance policy. For
    example, if you have a claim worth 500, and you
    have a 100 excess, you'll only receive 400 from
    your provider.
  • Most car insurers have two types of excess. A
    compulsory excess, which they set and can't be
    modified, and a voluntary excess, which you can
    set yourself.
  • Remember to set your voluntary excess carefully,
    if you're willing to contribute a large amount
    towards a claim your insurer will reward you with
    a lower premium but this could make claiming on
    your policy very expensive.

7
Am I covered to drive overseas?
  • When you drive your own car in the EU, your
    insurer will automatically provide cover to meet
    the minimum legal requirements of the country
    you're driving in. But this is rarely more
    generous than basic third-party insurance.
  • If you have comprehensive cover your insurer may
    extend your policy for a limited time overseas at
    the same level. This 'free' allowance period can
    vary between insurers from a long weekend to a
    whole year's worth - although 60 to 90 days is
    fairly common. Once the period elapses, your
    cover reverts to the basic legal level.

8
What is a no-claims bonus and should I protect it?
  • A no-claims bonus is a discount car insurers
    offer you if you can stay claim free for an
    extended period of time. Depending on which
    insurer you are with, every year you go without a
    claim will lead to a larger discount.
  • However, your no-claims bonus will be cut if you
    make a claim, but the size of the cut varies
    between insurers. Insurers also have different
    policies on whether a claim that isnt your fault
    will affect your bonus.
  • You can limit the impact of a claim on your bonus
    by paying to protect it. You'll typically have to
    pay 10 to 15 of the premium and it's usually
    available only after four years with the same
    insurer.

9
  • If you protect your no-claims bonus, making one
    claim in a year will see your discount fall or
    disappear. Making two claims in a year won't
    affect your no claims with some companies, but
    with others your no claims could be reduced.
  • Remember, a no-claims bonus does not protect your
    premium. If you make a claim your insurer will
    take this into account and the cost of your cover
    may increase while the percentage discount you
    get may remain the same.

10
Insurance Company
  • Al Buhaira
  • Tower, Khalid Lagoon,
  • Buhaira Corniche.
  • P.O. Box 6000
  • Tel 06 517 4444
  • Fax 06 574 8855
  • E-mailabnicho_at_albuhaira.com
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