Q - Do I have to take out motor insurance?
You are legally required to take out a motor insurance policy to provide cover in the event of an accident or your vehicle being stolen.
Q - What are the different levels of cover available for motor insurance?
Third party only
This is the minimum level of cover required by law to drive in the UK. Third party only will cover the cost of any claim made by another person for damage to their vehicle or property, or resulting from injuries received. If you are in an accident that is your fault, the insurer will pay on your behalf any liability to the other people in the accident.
Third party, Fire and Theft
This type of cover includes third party insurance but in addition also insures your own vehicle for any damage or loss caused by fire or theft. Any damage or loss to your own vehicle that does not result from fire or theft will not be covered.
Comprehensive
Covers you for third party fire and theft and any damage or loss to your own vehicle. There are still certain exclusions on this type of policy so it is essential that speak to us if you require any clarification on your particular policy.
Q - What is a No Claims Bonus?
No claims bonus or no claims discount is applied to the gross car insurance premium and is based on the number of years a driver has held a policy in his/her own name without making a claim on the insurance provider.
This feature is very valuable and depending on the number of claim free years and the car insurance provider a discount on the basic gross premium of up to 70% is possible.
Q - What happens to my No Claims Bonus when I make a claim?
If you make a claim the no claims bonus discount will be reduced you will have to pay a higher premium on the next renewal date. This is why some people do not claim on the policy for small amounts as having to pay the policy excess and losing the no claims bonus may not be economically sensible.
Q - What happens to no claims bonus when there is an accident and it is not my fault?
Please note that a no claims bonus is not a no fault bonus and any claim against your policy (usually with the exception of windscreen damage) will be taken into account. If a 3 rd parties insurance policy can be claimed against then your no claims bonus will not be affected.
Q - What is Protected No Claims Bonus
For the cost of a modest additional premium it is possible to insure yourself against loss of the bonus. Most UK car insurance providers will offer a protected no claims bonus which works on the basis that your bonus will not be affected should you make up to two claims in a three year period. Normal qualifications include at least 4 years existing no claims history.
For all other enquiries please telephone our office and speak to Michael or Angie on 01903 236788 or email your query using the following address: motor@graham-edwards.co.uk
