Car Insurance Explained | What You Need To Know (With Insurance Expert)

I’m Insurance Expert, and I’m here to discuss the glitzy world of Car Insurance with you. I completely understand that there are a hundred better ways to spend a day than looking for vehicle insurance. However, it’s a necessary task for everybody who drives a car. In the UK, there are three primary coverage options for automobiles: comprehensive, third party, fire, and theft. In this video, I’ll give you a little tutorial on access, a summary of what each cover includes, and a few extra cover alternatives that might be appropriate for your particular driving style. 

Table of Content

Insurance for third-party vehicles

In the UK, third-party insurance is the very minimum need for drivers. You must own an automobile if you have one. It follows that the third party is the most fundamental type of insurance. This kind of insurance will shield you from any legal claims made against you in the event of an accident and will cover injuries to other people in your car and other vehicles as well. However, it won’t shield you from harm to your own vehicle or property; just harm to someone else’s. Third-party insurance is a popular option for new drivers and those on a tight budget, but you should be aware that it won’t protect you if your car is stolen or set on fire. which would be a day that would be an absolute nightmare!

Theft, fire, and third party claims

The second layer of auto insurance includes third-party, fire, and theft coverage. It functions similarly to third-party coverage but, you guessed it, also offers coverage for fire damage and stolen car coverage. However, it still does not provide coverage in the event of injury, total loss, or damage to your own vehicle. Therefore, if you were to have an accident, you might still have to pay a sizable sum of money to cover your own expenses.

Coverage that is comprehensive

Congratulations to the marketing team for coming up with a catchy, modern term for comprehensive protection, the highest level of auto insurance. Some should have given the naming round-table a few more minutes even though not all heroes wear capes! To be fair, the comprehensive cover does exactly what it says on the tin; it protects you from fire and theft, as well as against personal injuries, injuries to others in your car and other cars, property damage, and the expense of any legal claims. You can get into as many accidents as you want if you have comprehensive coverage. KIDDING!

Pay-as-you-go vs. temporary coverage

You may also be familiar with pay as you go insurance and temporary auto insurance in addition to the “big three.” Although they may have a similar sound, they are actually very different types of cover. You only pay for the miles you actually drive because pay as you go is completely usage-based. This kind of coverage is great for those who frequently drive but just for short distances, like the school run or grocery runs. Pay-as-you-go insurance, despite its name, still covers your car even when you aren’t using it. Simply put, the price of your premiums is determined by your mileage. There are three ways to go about doing this:

1. By keeping a mileage log. This often entails installing a small, distance-tracking device in your automobile that resembles a black box.

2. On an hourly basis. Once more, monitor how many hours you spend driving with a gadget. The drawbacks of this approach include the additional costs associated with getting caught in traffic and the fact that it encourages people to travel more quickly.

3. Calculating your mileage is the final approach.

For those who frequently make the same trip and are familiar with the precise distances, this is great. Otherwise, you risk getting hurt if you estimate your mileage too high because many insurance companies don’t refund unused miles. Therefore, temporary cover is only based on time. It normally enables you to instantly insure an automobile for a period of one hour to thirty days at a time. Take your car, for which you pay an annual charge. However, you would add seven days’ worth of emergency coverage if your brother were to visit for a week so that he would be covered while he was here. Because temporary auto insurance does not account for usage, whether your brother drives the car just once, 17 times, or never, you will still be charged the same amount. The type of coverage you require will depend on your desire for premium control, how frequently and how far you travel, and whether you are the only driver of the vehicle.

Excess: what is it?

When it comes to car insurance, there are two main charges. The price of your insurance is the first. This is your insurance premium, which is determined by your unique situation, the vehicle you drive, and your driving history. Your excess is the second. Your excess is a fixed sum that you are required to pay toward any claim filed under your policy. So, if your excess is £200 but the claim is £1000 and you just smashed your brand-new Bentley, you’ll have to pay the first £200 before your insurance company will pay the remaining £800. The majority of insurance companies have a minimum required excess amount and often allow you to increase your excess amount to reduce your price. Just be certain you have the budget to account for those out-of-pocket payments. Bentley’s ain’t cheap, honey!

Optional extras

You can still increase the levels of coverage on your insurance even if you have comprehensive coverage. Therefore, if you frequently get into collisions, you probably shouldn’t be driving. However, if you feel you’d benefit from a more specialised policy, it can be worthwhile to add any of these extras to your auto insurance. Many of these have clear explanations. It can be helpful to think about your driving style, your usual destinations, and the purposes for which you use your automobile when determining whether you need any additional coverage. A courtesy car or car hire cover, for instance, could be useful if you depend on your car to travel to work or drop the kids off at school, ensuring that you’re never stranded without a pair of wheels. I can attest for windscreen cover if you’re going down a lot of gravel roads or country roads because I used to live in the country. Acorns may appear adorable and rustic, but they have the potential to cause considerable harm. And let’s not even talk about conkers! If you and your partner are seriously hurt in a car accident, personal accident insurance will protect you both. Your insurance would pay for assistance with medical treatments, missed wages, and recovery expenditures under this coverage.

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