Car Insurance Save On Premiums
Below is a MRR and PLR article in category Finance -> subcategory Insurance.
Car Insurance: Save on Premiums
Summary
Agreeing to an excess is an essential part of getting a car insurance policy. It means that if you're involved in an accident and need repairs, you contribute a set amount towards the bill. If it's your fault, you bear the cost. If not, the third party's insurer reimburses you. In cases where your car is written off, your insurer deducts the excess from your payout.Understanding Excess
What Happens with an Uninsured Driver?
Unfortunately, some drivers in the UK choose not to insure their vehicles, violating the 1988 Road Traffic Act, which mandates insurance for all drivers. Uninsured drivers often increase the risk of accidents. The Department of Transport estimates that around 5% of drivers are uninsured, a statistic that inflates premiums for law-abiding drivers.If you're in an accident with an uninsured driver and it's not your fault, the Motor Insurers' Bureau will reimburse you. This organization is funded by the car insurance industry, which is why premiums are higher. Sadly, you’ll still need to cover the agreed excess yourself.
Types of Excess
Compulsory Excess: This is the minimum amount you're required to pay towards damages, determined by factors like age and driving history. For example, someone older with a clean record may pay as little as £50, while newer drivers or those with a poor history might pay up to £500. The average is typically £100.
Voluntary Excess: By agreeing to a higher excess than required, you can reduce your premiums. This option assures the insurer of a lower payout on claims and can save you money, though availability varies by insurer.
Frequently Asked Questions
What if the Garage Holds My Car Until I Pay the Excess?
This is common practice. You must pay the excess before retrieving your car and can then claim it back from the third party's insurer. Always inspect your car to ensure repairs are satisfactory and keep the receipt. If disputes arise, a copy of the repair schedule can clarify the work done.By understanding these aspects of car insurance, you can take steps to reduce your premiums and be prepared in the event of an accident.
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