HOW CAN MULTI-CAR INSURANCE SAVE YOU MONEY?

The amount of money you can save on a multi-car insurance varies by the insurance company. However, research shows that on average, a person can save up to 25% for insuring multiple cars with popular insurance companies. Experts recommend getting several quotes so that you can compare them and choose the one that helps you save more money.

How Does Multi-Car Insurance Work?

Most often, a multi-car insurance policy works the same way as a single-car insurance policy. When you fill out the application form, you provide information about your vehicles and people who drive them. These people could be your family members, relatives, friends, and employees.

Some car insurance companies ask about the primary driver for each vehicle. Companies apply discounts to your multi-car insurance quote as you apply for it. Some insurance companies allow for shared coverages while others allow only one driver for one car. For instance, all drivers can share liability coverage on your multi-car insurance policy.

However, your insurance provider can set different collision and comprehensive coverages for every driver or vehicle. That way, you can carry full coverage on your new car without paying an additional amount for your son or daughter’s car.

How to get the most out of Multi-Car Insurance?

Having multiple cars increases the risk of accidents automatically. Insurance companies consider drivers high risk who are under the age of 25. It means the company will increase your premium.

Even if you add a car to your insurance policy that is driven by an amateur driver, you can offset the extra costs through the discounts associated with your multi-car coverage. It is crucial to work with an experienced car insurance agent because he or she knows how to assess the current situation and help you get the best possible rates to save money.

An experienced agent understands your changing family needs, so he or she can come up with sophisticated solutions and help you get the best insurance policy at an affordable price.

Most insurance companies offer big discounts on multi-car coverage policies. However, you have to find a company that allows you to save at least 25% on your policy. Likewise, you need to choose an insurance company that offers one renewal date and payment date.

Avoid getting a separate policy for each car, as this can lead to increased rates. You can also miss out on discounts and experience the hassle of tracking multiple bills each month. If you have a deductible of £1,000 on your policy, you will fork up £1,000 to fix multiple cars if they had got damaged in the same accident.

Final Words

Many car insurance experts recommend having enough auto insurance to save money. Combining car insurance policies into a multi-car coverage provides better protection for all your vehicles, and you can also get discounts for all your cars to save more money.

If a driver with a clean driving record or a low-cost car moves into your home, it is a great idea to add them to your multi-car insurance policy. That way, you can save 25% or more on your policy.

CAN I INSURE A CAR I DON'T OWN?

Most often, insurance companies require people to insure vehicles under their names. However, there are certain situations where you may want to insure a car, which is not registered to you.

Can you insure a car you don't own or without the title being in your name? 

The simple answer to this question is, "yes, you can insure a car you don't own." However, it depends on the insurance company and the situation.

A person with no financial stake in the car has no reason to insure it. Most insurance companies are careful about this because they want to reduce the risks of fraud. In today's article, we will delve into this subject and give you the most authentic information. Read on!

When can I insure a car I don't own?

Insuring a car you don't own is not common and may involve unwillingness or refusal from the company to insure you. However, there are certain situations where you can insure a vehicle without the title in your name.

For instance, you can insure a car when you have an insurable interest or when you add the car owner's name to the policy. Companies will insure you if you take out a non-owner's policy or if the car owner tells the insurance company to add your name to the policy. The insurance company will also allow you to insure the car if you share the same address as the car owner.

When I can't insure a car I don't own?

Sometimes, it is impossible to insure a car you don't own or not in your name. For instance, if you don't have an insurance interest, the company won't allow you to insure the vehicle.

If you don't have a driving licence or are not legally allowed to drive the company will reject your application. The car owner not giving you permission is another instance you can't insure it.

How to insure a car I don't own?

First, the car owner will inform the insurance company that he or she would like your name added to the policy. The insurance company will request you to visit the office and sign the document or carry out the necessary steps to authorise you to use the insurance policy.

Remember, this option has several advantages, including ease and affordability. However, the insurance company will confirm your address, and if it is not the same as the car owner, they will reject the application.

Another way to insure a car is by adding the owner's name to your policy. So, it is you who are insuring the car and holding the policy. The company will only allow this with the permission of the car owner. Bear in mind that this option can lead to raised premiums.

Moreover, you can also co-sign on the car title as co-owner and apply for its insurance. However, this depends on your relationship with the person who owns the car. This option is convenient because you become a legal owner of the car and can take out a policy on it.

When you become a co-owner of the car, you can prove an insurable interest in the car. Although this is a good option, most people don't share half-ownership of their vehicles.

LEARN HOW TO ESTIMATE YOUR CARS TRUE VALUE FOR A MORE ACCURATE QUOTE

Getting the best quote from an insurance company is the goal of every driver. You can consider many factors to get the best insurance policy, such as driving history, location, years of experience, credit score, etc. Besides these, your car's actual value is the most important element you should consider for a more accurate quote.

However, it is often a difficult task to determine the actual value of your car. Experts recommend people to set aside their emotional attachment to their vehicles to create a realistic estimate. Knowing the methods car insurance companies use can help you determine the true value of your car.

Likewise, you should compare your car to other similar vehicles and their prices to calculate a reliable estimate. In today's article, we will give you some tips that will help you estimate your car's true value. Read on!

Record Your Car Information

Recording all the information about your car can help you determine the actual value of your vehicle. Make sure you write down the make, model, year, color, engine type, mileage, upgrades, and further necessary details. That way, you can set your car apart from other vehicles. It may also include information about modifications, dents, scratches, and newly replaced parts.

Research Your Vehicle's Book Value

Although the value book is not the ultimate source to estimate your car's true value, it can give you some useful information. Most book value sites don't offer accurate estimates of what insurance providers will offer you, especially if you have a claim.

The reason is that insurance companies have different estimation methodologies for calculating a vehicle's value. Most insurance carriers access the car database and base their quotes on similar cars' prices in your region. Well, "book value" plays a key role in calculating your car value, but you should not solely rely on it.

Compare Prices Online

Many websites offer tools to estimate your car's value. Visit online car sale sites to start comparing prices. You can narrow down your search based on factors like location, post code, car model, year, etc.

Most often, insurance companies use car sales data from your geographical location. If you search your city or post code and can't find any similar cars for sale, then it is important to do a broader search to find several similar cars.

Find the Average Price

After you have found all similar vehicles in your area, note down their prices. Average the prices for all the cars and then reduce the figure by 10% to 15%. It is because people bargain down the prices before finalizing the sale.

This number can help you calculate a good estimate for your car value for insurance purposes. However, the insurance company will adjust the value up or down based on your vehicle's current condition.

You can drive around local car lots to determine the asking price for similar cars. Keep in mind that most dealers finalize the deal by selling those cars for less than the listed price. Make sure you compare your car to others with similar features and mileage.

Final Words

Everyone wants to get the lowest possible rates while applying for insurance coverage. Knowing your car's true value can help you get the best insurance policy. Consider the tips and tricks mentioned above to calculate the actual value for your vehicle.

WHAT IS ACCIDENT FORGIVENESS?

Accident forgiveness is an add-on or an additional feature of the insurance policy. It protects you from increasing rates after an accident. Most people often add this as an optional feature to their car insurance coverage. Some insurance companies offer free accident forgiveness to people who have an insurance policy for many years and not involved in accidents.

Accident forgiveness does mean that an accident caused by you won’t be documented on your driving record. If you switch to another insurance provider after an accident, it can negatively impact your insurance rates.

Moreover, insurance companies apply this feature to only one at-fault accident. If you are involved in an accident again in the future, the company will increase your premiums. Therefore, you have to act carefully and not consider this feature as an absolute immunity.

How do Insurance Companies determine Accident Forgiveness?

Insurance companies consider various factors when determining the rates of accident forgiveness. These factors include your age, car, and location. Most companies also consider your driving history as a top factor while determining the rates of accident forgiveness.

If you are an experienced driver with a good driving record, you can get low annual rates and discounts. On the other hand, if you are involved in multiple accidents, you may lose perks like low rates and discounts. In fact, this may cause you to incur an accident surcharge.

Research reports highlight that drivers causing accidents will experience a 33% increased rate for several years. But, if you have an accident forgiveness feature added in your policy, you can avoid part of this increasing rate. Keep in mind that you will still lose the discount.

Example:Suppose you have an accident forgiveness discount and pay £500 per year for auto insurance. If you are involved in a car crash and found at-fault driver, you would lose the privilege, and the insurance company will raise your rates, especially when you renew your policy.

Likewise, the insurance provider will apply an accident surcharge on your rates, increasing them to £650 for the next 3-5 years. Besides the surcharge of the accident, the company can charge you an additional amount of £800.

Advantages and Disadvantages of Accident Forgiveness

Although accident forgiveness is a great feature in your insurance policy, it is not a perfect solution for many drivers. The primary advantages of this type of feature are that the insurance provider won’t increase your rate after your first car crash. Another benefit is that the insurance company include small accident forgiveness in your policy for free if you have a clean driving record.

The downside of accident forgiveness is that this feature often costs an additional amount, raising your premium rates. The insurance company can increase your rate after a collision and remove all discounts from your policy. Furthermore, accident forgiveness is not offered to all drivers.

Final Words

Accident forgiveness is a useful feature for some drivers. Based on the advantages and disadvantages mentioned above, it is not worth for every driver. It is beneficial for those who have a clean driving history and meets eligibility requirements. So, if you are a safe driver, you must include it in your policy.

HOW TO LOWER YOUR CAR INSURANCE QUOTE

Car insurance is an unwelcome expense for most people. However, its primary benefit is shielding or covering you from financial loss due to property damage or injuries related to an accident, natural disaster, auto theft, or some other unpleasant event.

It is crucial to get dependable coverage without breaking the bank. You can find hundreds of insurance companies, but you have to look for a provider offering a policy that best fits your needs. In today’s article, we will give some tips that will help you lower your car insurance quote. Read on!

Compare Quotes or Rates

If you are looking for affordable quotes, you will have to shop around. Many people consider getting quotes from national auto insurance companies. Although this is good, experts recommend getting insurance quotes from smaller insurance providers. That way, you can find the best and affordable deals.

The best way to shop around is to take advantage of the internet and compare car insurance quotes online. Another way to review insurance options is by working with an experienced car insurance companies.

Consider Liability Coverage Limits

It usually consists of bodily injury, property damage, and uninsured motorist coverage. The U.K has its minimum coverage requirement. However, you can choose more coverage if you can pay more. Bear in mind that a higher coverage is directly proportional to a higher insurance quote or rate.

Consider your assets such as investments, savings, or home before settling for the minimum coverage requirement. You can risk your assets if you cause an accident resulting in higher medical or property damage costs. Choose minimum coverage limits that go in line with the value of your assets.

Increase Your Deductibles

It is the amount of money you pay toward the cost of a car insurance claim. Increasing your deductible can help lower your monthly premium. Before you decide on a deductible, it is crucial to review your overall financial situation. A higher deductible above your limit or too high can cause financial instability if you ever make an insurance claim in the future.

Look for Discounted Quotes

Do you have a clean driving record? Are you a student who has got straight A’s? Some insurance companies offer discounted quotes based on group memberships and car safety features like anti-theft devices and policy ownership, driving history, etc.

Although it depends on the insurance company rules, most of them offer discounts to military personnel, veterans, drivers with a clean record, and full-time students with an excellent academic record, and people who have taken a driver’s learning course.

Moreover, you may also get lower insurance quotes if your car has safety features like antilock brakes, airbags, and anti-theft systems. If you are an active or retired federal employee, the chances are that you will lower quotes.

Final Words

If you want to lower your car insurance quote, it is crucial to get a least three quotes from the insurance agents or companies. That way, you will get a good price for the policy you want. Consider coverage limits while comparing quotes and review deductibles as well.

CAR INSURANCE GROUPS AND HOW THEY WORK- EXPLAINED

Do you know the right type of car insurance can help protect you, your family members, passengers, drivers, and motorists? A car insurance coverage policy can cover bodily injuries and property damage costs that may arise after a car accident.

If you want to save money on your premium, it is wise to understand the car insurance groups and how they work. In today’s article, we will talk about car insurance groups and their effects on your policy’s price. Read on!

What are car insurance groups?

There are 50 car insurance groups, and each group has categorized specific cars based on their prices. It starts from the cheapest (group one) and ends with the most expensive (group 50). For instance, if you have a cheaper car, it will end up in a lower group. On the other hand, if you have an expensive car, it will be categorized in a higher group.

Generally, insurers use a specific “Group Rating System” to calculate premiums. Research institutions usually run the group rating system in collaboration with insurance companies. However, some car insurance companies use their own grouping systems. A car in a lower insurance group has lower premium costs than a car in a higher insurance group.

In simple words, if your car is in group one, you will pay the lowest premiums, and if it is in group 50, you will pay the highest premiums every month. The insurance company will decide your monthly premiums based on the group of your car.

For instance, a Skoda Citigo 1.0 SE is in Group one because it the cheapest vehicle to insure. On the other hand, Bentley Flying Spur is a luxury car categorized in the highest group, i.e. group 50.

How do insurance groups work?

Research institutions associated with the car insurance industry analyze and categorize cars in different groups based on different factors. Among them, the most important factor is the price of the car. Research institutes also consider other factors, which are:

New car values: the institute considers the prices of new cars to determine the cost of repair and replacement.

Repair times: the longer the repair time of the car, the higher is its cost and group.
Parts cost: the cost of damage and parts involved in the repair process. The higher the

costs, the more chances of a higher group rating.
Safety: cars with an autonomous braking system are categorized in higher groups.

Security: Researchers also consider factors like alarms and immobilizations system end up in higher groups due to reduced claim costs.

Bumper compatibility: a car with a stronger bumper will be categorized in a higher group. Bumpers prone to damages after accidents end up in lower groups.

Final Words

Checking or knowing the car insurance group is worth your time because it helps you understand the insurance premium. It helps you know how your next car will impact the insurance price.

WHAT TO DO IF YOUR CAR INSURANCE CLAIM IS DENIED

Most insurance companies deny claims regularly. If you have filed a claim after an unfortunate car accident, it is your right to get a fair settlement from your car insurance company. The insurance company can deny your claim for the following reasons:

•   You are behind on your monthly premiums.

•   You failed to get medical treatment for injuries.

•   Your claim does no go in line with the other party’s policy limits.

•   You failed to report or file a claim on time.

•   You are an at-fault driver or violated the law at the time of the crash.

         You have not represented facts in your claim.

Typically, the company investigate your case and compensate you for the damages and medical costs. However, if the company has denied your claim and you think they have done wrong, you can take actions to make them reconsider or reverse their decision.

Insurance companies may use unfair means to get out of paying claims. It is possible that your insurance company draws out investigations, delay payments, or deny valid claims. Most insurance companies deal with a claim unjustly to save money.

Remember, denying a claim in bad faith is an offence that can lead to a legal action again the insurance company. You can file a lawsuit for compensation if you think the insurance company rejected your claim in bad faith. Here are a few steps you can take to get compensation for damages.

Step 1: Review Evidence

Before you appeal to the insurance company for negotiation or hire a solicitor to represent you in court, it is essential to review all evidence. Make sure you know why the insurance provider denied your claim.

Then, go through the evidence you submitted with the claim. Write a report or inscribe a document that proves the insurance company has made a wrong decision. Include copies of evidence, including the police report, medical records, eyewitness reports, photographs of the accident scene, medications, etc.

Step 2: Contact the Insurance Company

It is your right to contact the insurance provider and discuss the problem of denial. Provide all the necessary evidence you have collected and reviewed to the insurance adjuster. The company may reconsider its decision and reverse its denial.

Most probably, the insurance provider will negotiate a settlement with you. However, if the company sticks to its previous decision, then you need to hire a solicitor to help you appeal the company’s decision to the insurance commissioner. A successful appeal can lead to compensation for your losses.

Step 3: File a Civil Claim

If your attorney believes your claim was denied in bad faith, he can help you file a civil claim against the insurance company. Make sure you cooperate with the solicitor by providing him or her with all the necessary documental evidence.

Your solicitor will prove the insurance provider violated flouted the law. The insurance company will do its best to avoid a court trial and re-negotiate with you for a settlement. Seek guidance from your car insurance solicitor because he or she can get you the compensation you deserve.

WHAT IS TEMPORARY CAR INSURANCE?

As the name indicates, temporary car insurance refers to a short-term insurance policy. It enables you to get car insurance for a specific period, which can be two days, one week, or one month. If you need coverage for a shorter period, you can consider the option of temporary insurance. For instance, you may need to cover yourself for one month instead of six or twelve months.

Most car insurance companies offer policy options based on six months and twelve months term lengths. An insurance company makes efforts to keep their clients for a longer period. A driver who wants to carry an insurance policy for a short period is a less-than-ideal customer for an insurance provider.

It is illegal to drive a car without car insurance. Driving without an insurance policy can result in hefty fines, a ban and even  a prison sentence.  It becomes even more difficult for a person to deal with an unfortunate situation like a car accident in which he or she is declared the at-fault driver.

When do you need temporary car insurance?

There are various situations where it makes a perfect sense to purchase a short-term insurance policy. These are:

•   Renting a car without having a standard insurance policy

•   Borrowing a car from your friend for a few days without having a coverage policy of

  your own

•   Going on a road trip with relatives and driving a friend’s car

•   Your car is at the repair shop, and you need one for your daily chores

•   A friend has borrowed your car, and you need to drive another car

    You are driving a car in a different state and don’t have a home-state license

    You purchased a car for a short period and plan to sell it soon

What is covered by temporary car insurance?

Different car insurance companies that offer temporary coverage have different policies, rules, and regulations. So, the coverage options depend on the kind of temporary insurance you decide to buy. However, most insurance companies will cover liability, collision coverage, comprehensive coverage, medical payments, and towing, underinsured and uninsured drivers.

How much does temporary car insurance cost?

Many factors determine the cost of a temporary insurance policy, such as the type of car you want to insure, how you will use it, your insurance record or history, and the period for which you need short-term insurance.

In general, the cost of temporary insurance varies greatly depending on where you purchase it. For instance, if you buy temporary car insurance from a rental company, it will cost you more than the one you purchase from a regular insurance provider or agency.

Research shows that temporary insurance is a bit pricy than the standard one, and can cost up to £150 a day. Because most insurance companies do not offer temporary coverage for rental cars, you can save money by purchasing a non-owner policy.

It is essential to shop around and find a reliable insurance company that offers temporary coverage for an affordable price – the one that comes within your budget. That way, you can make an informed decision and buy temporary insurance that will benefit you in terms of coverage and price. Good Luck!

HOW TO CANCEL YOUR CAR INSURANCE

There are many reasons people want to cancel their car insurance policy. For instance, you may want to switch to another car insurance company or you have sold your car, and you don’t need the insurance anymore. Whatever the reason is, it is important to cancel your insurance the right way to avoid suffering from any unexpected consequences.
Most insurance companies allow people to cancel their coverage policy at any time. You just need to contact the company or send them a letter with the cancellation date. Experts recommend notifying your old insurance company when you want to switch to a new insurance provider. In today’s article, we will talk about how you can cancel your insurance policy efficiently and quickly. Read on!

Ways to Cancel Your Car Insurance
There are several ways to cancel your car insurance. For instance, you can send them a written letter or email them to start the process of cancellation. Keep in mind that the date of cancellation is an important element that you must mention in your written request.
If you are considering a new insurance company, make sure you have everything in place or activate your insurance policy before cancelling the current one. Otherwise, you will put yourself at risk driving your car without any insurance policy. You never know what could happen on the road. So, again, you must have active insurance coverage before you cancel the old one.

Call the Insurance Company

One of the quickest ways to initiate the process of car insurance cancellation is to call your agent. Some insurance companies require no paperwork and will end your policy with a phone call. However, if the insurance company requires you to sign a cancellation notice or complete the procedure, ask the company to send you the cancellation documents.

Email or Fax the Insurer

Your insurance agent may not receive your phone call. Whatever the reason, you can use other options like mailing or faxing in your cancellation letter to the company. If you are dealing with an insurance agent, it is essential to send a letter to his office, send him an email, or fax it to his fax number.
On the other hand, you can also send a letter to the insurance company. Make sure you include all details in the letter, such as your name, address, contact number, and requested date of cancellation.

Visit the Insurance Company

Visit the insurance company and meet the staff in-person to start the cancellation process. The insurance officer will convince you to stay with the company, but if you have already made up your mind, say no and move on.
The insurance officer will most probably give you good offers, such as lowering your monthly premiums and give you a chance to reconsider your decision. Again, if you don’t want to continue with the company, simply decline and sign the cancellation form. Lastly, if you don’t have time, you can request the new insurer to get the job done for you.

ARE LOW EMISSION CARS CHEAPER TO INSURE?

Insurance companies have categorised cars into groups that range from 1 to 50. When new car models come to the market, insurance providers assign them a rating based on several factors. These are repair costs, repair times, part prices, new car values, performance, safety features, bumpers, and security features.

A car in a low insurance group is cheaper to insure. The question remains: are low emission cars cheaper to insure? Because of their unique service needs, low-emission cars usually cost more to insure than traditional vehicles. However, it is essential to shop around and find the cheapest insurance rates for your low emission car.

Low emission vehicles, such as electric and hybrid cars are significantly changing the landscape of automobiles. Electric vehicles, for example, are more accessible and affordable to the average driver.

The strong network of charging stations allow drivers of low emission cars to travel long distances, making the concept of electric and hybrid cars more enticing. Anyway, here are a few reasons why low emission cars are more expensive to insure. Read on!

More Expensive

Low emission cars are relatively more expensive than traditional gas-powered vehicles. Although tax refunds make the initial price of low emission cars cheaper than other types of cars, insurance companies look at the replacement cost when determining insurance rates.

Like other cars, low emission cars base the replacement cost on the retail price suggested by the manufacturer. Research shows that low emission cars are 25% more expensive than gas-powered vehicles. So, this is more costs for insurance companies if you need to replace your low emission car.

Higher Repair Costs

Compared to gasoline cars, low emission hybrid or electric cars do not have many moving parts. However, it is very expensive to replace a low emission car’s part after an accident. Low emission cars will have reduced repair costs in the future, but now, they are more expensive.

The reason is that batteries, engine, and other high-tech parts are more expensive to replace. The other reason is that the lack of qualified and trained mechanics who can fix low emission cars efficiently.

An auto insurance policy often consists of collision coverage, which pays for the medical and car damage after an accident. When you pay the insurance deductible, you don’t need to pay for repairs.

However, if you have a low emission car, the insurance company may factor in higher repairing costs, which means you will pay higher monthly premiums. That’s why it is essential to have collision coverage; otherwise, you will pay for the repairs from your pocket after an accident. If you have financed a new low emission car, your car loan lender will require you to have collision coverage as part of your insurance policy.

More Prone To Damages

Many new models of low emission cars are smaller than traditional gas-powered cars. Research shows that smaller cars are more prone to damages after an accident, requiring more repairs.

According to the Insurance Institute for Highway Safety, heavier cars provides more protection to people than smaller, lighter cars. The reason is that most traditional cars have a long distance from the car’s front to the driver’s compartment, which protects him or her in frontal crashes.

Most new models of low emission cars are more prone to getting damages, which can lead to higher repair costs. That’s why insurance companies have set higher premium rates for low emission cars, including hybrid and electric cars.

FiVE CAR INSURANCE MYTHS

Car insurance can seem complicated to you, especially when there are several misconceptions about it. There are many common misconceptions among vehicle owners that should be mentioned. Here are the five car insurance myths and the truth about car insurance given below:

1. Bright Colours Cars are More Expensive to Insure:

We mistakenly believed that car insurance costs are equal to every car, but there is a misconception that cars with bright colors are much higher than with standard body colors. However, the color can indirectly affect the final price of the insurance policy. The fact is that many bright colors tend to be high from more expensive versions of car insurance.

Since the market value of the car plays a vital role in calculating the cost of insurance; as a result, the bright color also has an indirect impact on car insurance.

2.​ ​The Insurance Company Reduces the Maximum Coverage Amount After an Accident:

Half of the vehicle owners know that after insurance under the Casco policy, the maximum amount of coverage is not reduced by the amount of damage. We all know that each insurance company sets a maximum payment limit for every car at the time of insurance. Typically, this maximum amount is based on the market value of a new or used vehicle.

Every month, the amount is reduced by the car's natural depreciation according to the Casco contract. The non-aggregate type of insurance under the Casco policy is much more profitable for the vehicle owner.

3. Car Insurance is not Preferable for Young Driver:

Insurance premiums are generally higher for younger drivers. Usually, insurance companies have different rates for car insurance, especially for young drivers. However, other factors, such as age, are also considered when calculating the insurance premium. Generally, a driver having a good driving record can benefit from a more favorable premium.

4. Your Insurance Premiums Enhance If You Are Involved in the Accident:

If the accident happens through your negligence, then it may affect your premium. Remember, if you find that your insurance premium is going up, it may have nothing to do with an accident. Meanwhile, insurance rates are periodically adjusted to consider inflation, the type and number of claims, accident statistics for people driving the same car as you, and more.

5. If your friend borrows your car and wrecks it, their insurance policy will compensate you:

Remember that your insurance is part of yourself. When you lend your car, you also lend your insurance. So think about the impact an accident could have if the person you lend your car to has an accident. In the event of a collision, depending on your contract's coverage, it is generally your insurer who will compensate you for the damage caused.

Wrapping up:

The above are five car insurance myths that every car owner needs to understand. However, the insurance company develops a compromise relationship with the broker that fulfill the insurance obligations at the time of mishaps.

FIVE IMPORTANT FACTS ABOUT CAR INSURANCE

All car owners must have car insurance through a third party source. No one is obliged to drive a car without any protection. A penalty would be applicable if a vehicle owner didn't have the car insurance that suffers damage (The Motor Vehicles Act, 1988).

To overcome the tension, here are five essential facts about car insurance, have a look:

1. Impact of Your Credit on Insurance Rate:

Whether you agree with this fact, your credit directly bounces on your chosen insurance plan. The provider found the characteristics of an individual's credit that they predict at the insurance claim time.

However, these characteristics didn't match when the bank measured the lending risk rather than the insurer using the insurance credit in conjunction with variables - at the time of submitting the claims. The variables include claim history, driving record, age, residence place, and average car's average miles.

2. Stop Payment Because You Switch Other companies:

In case you think it's easy for you to switch to the best car insurance companies, as the previous one didn't provide the right benefits, you are wrong here. Indeed, your insurance policy will cancel here, but the company directly reports you as a nonpayment in the credit bureaus. The result will be damaging to your credit.

Moreover, your car insurance history has a cancel reflection, and as a result, you have to pay high premiums to other insurance providers. Rather than this, review the cancelation policy before you complete the paperwork.

3. Company is Liable to Renew or Cancel the Car Insurance:

In case you violate the insurance guidelines, your company has full authority to cancel your sign policy and the same issue with non-renewal. Wait for a while and think, if this happens, you can lose your driving license, fault claim submission, past insurance claims, or any mishap happening when the insurance company cancels the policy without informing you.

To save from this worst situation, have a legal written frame so that the company will notify you in case of cancelation.

4. Cost of Brand Loyalty:

If you think that you have car insurance and everything is okay, then you’re wrong here. For many years, the insurance company has maintained its factor list when calculating the insurer premiums.

Nowadays, the factor list is confusing daily because of the credit labyrinth that differs the insurance rate and its change from provider to provider dramatically. Renew the insurance list once in a year, as compared to believing in the insurance company. Most of the companies offer direct policy, whereas others sell the policy through brokers and agents. The best advice is to get the insurance quotes online to save yourself from less coverage service.

5. Pay full premium car insurance:

If you consider an installment plan, you are paying an extra amount like every month, every three months, and so on. But what is the feasible solution in this regard? Consider spending the premium amount at once, so you will get cheap car insurance without a convenience fee. It depends on how you choose the car instalment plan, like to pay by phone or directly.

Wrapping up:

The above are five essential facts of car insurance that acknowledge about the hidden policies, so less-intricacies are involved regarding insurance providers' policies. The best advice is to monitor your credit report regularly and contact the credit bureau in case of any error.

WHAT IS CAR INSURANCE EXCESS?

At the time of car insurance, it is better to consider the actual excess cost of insurance. Sometimes, low insurance seems too high because of extra charges. You might save yourself from the nasty surprise when you decide everything before you sign the contract.

Usually, car insurance excess is the actual cost that you wanted to contribute at the time of claiming an accident. In the case of a car accident, the insurance company will be able to pay the decided repair cost. For example, if the car cost damages is £1,250, the insurance company will be able to pay only £1,000, which means you have to pay £250 excess amount.

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Three types of car insurance excess:​

1. Compulsory excess

You might understand from its name that this kind of excess is non-negotiable by the person who insures their car. The insurance company wants you to pay the minimum amount at the time of accident or vehicle repair. The compulsory excess depends on your driving experience, age, your car type or any previous insurance history.

The reason behind imposing the compulsory excess is to stop minor claims like a scratch or small dents. The chance of more claims arises when there is no minimum amount to pay; as a result, the insurance premium will rock up.

2. Voluntary excess:

It's an amount that you are liable to pay toward the claim cost - at the time of paying compulsory excess, for instance, you consider to pay voluntary excess of £200, and your compulsory excess is £150 then you have to pay a total of £350 when you claim for repairs. Whereas, your insurance company will handle the matter by the rest.

3.​ ​Windscreen excess

A reduced excess amount that you have to pay for the windscreen excess repair or several damages. It comes in the insurer's duty to get the windscreen repaired before it hazards or cracks completely, so the chance of reducing excess is liable at the time of car repair.

Why do you need to pay for Voluntary excess?

It can be counter-intuitive for the insurer to pay the excess cost, but if you look at its long-term benefit then it could be cheaper for you. In case of rare claims, you can enhance your voluntary excess and get reduction in annual insurance premium cost. The reason behind this is, you are carefully focusing on your driving, and you rarely pay the voluntary amount.

The overall calculation observes that you have to pay less if you are expected to have fewer accidents and make fewer claims. In case, car insurance excess is high, at this point, an insurer has to pay a significant repair cost.

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Wrapping up​:

Any excess that you claim is directly paid to the garage rather than in your hand. You can only reclaim your excess when Insurance company properly waived the excess. Some insurers allow for extra coverage so that you won't have to pay any claim excess. Keep in mind, the insurance company only deals with severe and costly claims by imposing the compulsory excess.

HOW TO CHALLENGE A WRITE-OFF?

A car insurance write-off means that an insurance company considers your car as a total loss after an accident, a flooding incident, or a fire incident. A car can only be written off when it is beyond repair or when the cost of repair will be higher than the current value of the car.

Car insurance write-off comes in different categories, including A, B, S, and N. Category A and B write-off implies that the car is completely destroyed and should be crushed. The difference is that in category B, undamaged parts can be salvaged.

Category S and N write-off means there is still hope for the car, but your insurance company may decide to write it off anyway. This is where you can disagree with the write-off and even challenge it.

What It Means To Challenge A Car Insurance Write-Off?

In simple terms, challenging a car insurance write-off means you do not agree with the verdict of the insurance assessor. There are cases where assessors make wrong estimates about cars involved in accidents. They may assign the car a wrong pre-accident value, overestimate the cost of repair, or offer an insignificant settlement figure. In any case, you can challenge a write-off if you know that something is wrong or you are being cheated in any way.

How Do You Challenge A Car Write Off?

If you believe that your car is not a write-off, you should certainly challenge the decision. You need to do that with facts, so there is a need to do your homework. If, for instance, you are disputing the value the insurer has offered as a settlement figure, you must be ready to provide evidence that your car is worth more than that. You can find adverts for similar models, as well as any document that can prove your car's worth. Even if it means going to local dealers who can put a value in writing, find relevant documents to support your argument.

You can also prove that an insurance assessor is wrong about the potential cost of repair. This is pretty simple. You can get your trusted mechanic to look at the level of damage and give you a quote of what it will take to fix it. Compare the quote you are given with your estimation of the value of your car, and you may have a strong argument.

Negotiating With the Insurance Company

When you challenge an insurance write-off, it normally leads to negotiations. The insurer or the representative will be willing to come to the table. You may be offered an improved settlement figure, or the decision may even be reversed. You can also make an offer to buy back your car after accepting the write-off. You have to make the offer in time and consider the cost of fixing the car yourself.

Challenging a car write-off can be necessary in many instances. If you believe you have a case, don’t be afraid to challenge a write-off.

WHAT TO DO IF YOUR CAR IS WRITTEN OFF?

There are a few things that can lead to your car being written off. In most instances, it results from bad accidents. The damage can also be caused by water or fire. In any case, your car will be written off when it is either so damaged that it is unsafe to drive or when the cost of repair would be a lot more than the current value of the car. 

What do you do when your car is written off? Well, you need to fully understand what being written off means and the full implication. Here, we will briefly discuss the most important things you need to know and then suggest the best way to handle the situation.

What Is A Car Insurance Write-Off? 

A car write-off is an insurance term that is used to categorise a car as a total loss. It is normally done after an accident, flooding, or fire incident - when a car is seriously damaged. An insurance company will write off a car when it is beyond repair or the cost of repair is higher than the current value of the car.

When your car is written off, ownership is transferred to the insurance company, and you will receive a cash payout that is equivalent to the value of the car if it were sold in its pre-accident condition. The amount you will be paid if your car is written off is called a settlement figure. What you can do after a car is written off depends on various factors.

What Are The Car Write-Off Categories? 

There are four categories of car write-off, including A, B, S, and N. 

* A means car is only fit for scraps and should be destroyed. 

* B means the body is significantly damaged and should be crushed, but undamaged parts can be salvaged.

* S means the car is structurally damaged and is unsafe to drive until professionally repaired.

* N means the car has suffered non-structural damage and may not be drivable at the time.  

What Happens When A Car Purchased On Finance Is Written Off? 

If your car was purchased on finance and you still owe the lender, things can be a little complicated. If the settlement figure is lower than what you owe, the implication is that you will be paying for a car you no longer have. You can negotiate with the insurer if you feel the settlement figure is below the pre-accident value. It is also important that you contact your lender as soon as possible to see if you can come to an agreement. 

You can also use the settlement to buy a second-hand car and continue to pay your lender. If your car is categorised S or N, you may also consider buying it back. 

Can You Dispute The Decision To Write-Off Your Car? 

Yes, you can dispute the decision to write-off your car if you feel the insurance assessor is wrong. Some do this when the car is of sentimental value to them. In any case, you can negotiate with the insurance and request that you keep the car and settlement value, minus the salvage value. You will need to arrange for repairs as the insurance is unlikely to do that. 

Can You Buy Back Your Car That Has Been Written Off? 

Yes, you can buy back your car that has been written off, but only if it is under category S or N. You also need to inform your insurance company about your intention in time. Some have contracts with salvage firms they sell to and may be reluctant to consider your offer. A little negotiation can get you a deal, however.

What you do after your car has been written off depends on the category of the write-off, your financial situation, as well as whether you agree with the insurance assessor. Depending on these factors, you can decide on the next step to take. The information in this post can guide you accordingly.