Car insurance explained

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Car insurance explained
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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.

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• 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

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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.

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• 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.

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• 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.

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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.

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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.

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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.

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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.

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• 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.

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Insurance Company

• Al Buhaira
• Tower, Khalid Lagoon,
• Buhaira Corniche.
• P.O. Box 6000
• Tel [phone]
• Fax [phone]
• E-mailabnicho_at_albuhaira.com