METROMILE VERSUS CUVVA

Pay-as-you-go mileage car insurance consists of a base rate calculated using factors such as driver age, credit score, driving history, type of car the policyholder drives, gender, and other factors including the number of miles the policyholder drives. To calculate the number of miles a policyholder drives, insurance companies use in-vehicle devices that track the number of miles they record each month. Drivers who are not driving at all pay only the basic fee. However, drivers on open roads will pay a monthly premium that reflects their mileage, including a daily mileage cap that is not charged to their policy holders. However, hourly-rate car insurance is the concept of charging drivers by the hour.  

US company Metromile is the pioneer and leader of "Pay-per-Mile car insurance" a service in which the premium is determined according to the mileage. For the last 50 or 60 years, it has been common practice in the American automobile insurance industry for customers to pay a fixed premium every six months. However, under this mechanism, car drivers who travel less than the average won't have to pay excessive premiums. Metromile measures the mileage of the car by attaching a small device to the diagnostic port of the car, and collects the insurance premium of "mileage x 1 mile rate" at the end of the month. This allows people with below average mileage to reduce their insurance premiums. In fact, Metromile customers are saving about 35% on average. Which eases a financial burden for motorist. 

Insurance start-up Cuvva is a leading pay as you drive car insurance provider in the UK. Over 400,000 people currently use the smartphone application for android and iOS devices. Cuvva can be considered as the UKs' answer to Metromile. Cuvvas' policies are designed for those who drive occasionally. The company has a flagship insurance product based on the principle of hourly rate coverage but also offers insurance on a weekly and monthly basis. This allows drivers to restrict their protection to the time they spend actually driving. Cuvva claims that their users can save up to 70% with their insurance policies compared to conventional car insurance policies. According to Cuvva the average price for comprehensive cover is £8 per hour, making pay as your drive protection a feasible option for infrequent motorist. The whole idea behind Cuvva is, if you drive less, pay less.

Policyholders considering switching to a mileage plan should consider the following:

• Whether Paying in miles, where premiums are calculated, makes this policy an unattractive option. For many driving policyholders. This makes people who drive many miles less likely to buy mileage insurance. On the other hand, this is a great option for people who live in urban areas or who don't need to use their car very often.

• The amount of money the driver can save. It all depends on the number of miles they drive. To see how much you can save, policyholders can get quotes from traditional car insurance providers and mileage insurers and use estimated annual mileage as a predictive marker when calculating the cost of each option.

• Differences between mileage billing and pay-as-you-go policies for each drive. The pay- as-you-go policy uses telematics devices to track driver driving patterns. These devices track speed, braking and several other factors to determine how safe driver is. Mileage insurance, on the other hand, is only calculated using the base rate and the mileage rate. Reckless driving by the driver does not affect the cost of mileage insurance.

• If you can cancel it. Policyholders can cancel their mileage payment policy at any time, but many providers charge a fee when they do so. However, if the policyholder switches to the traditional unlimited mileage policy, this fee will be exempted.

• What it covers. The mileage billing policy offers the same scope as the traditional policy. However,  while traditional policies charge monthly premiums based on factors such as age, gender, car make, model, and driving history, mileage insurance has significantly reduced the basic mileage. A base charge will be charged to the policyholder. 

Cutting-edge technology for insurance

Both Metromile and Cuvva utilise cutting-edge technology and data processing algorithms. Metromile's strength is not only in the Pay-per-Mile mechanism, but also in the data they collect.                 The collected data can be used to avoid parking violations by customers, and the devices installed in the car's diagnostic port can notify customers of car malfunctions. Metromile also uses data to facilitate billing in the event of an accident. Traditional US billing takes a week or two or more, depending on the circumstances of the accident. In addition, many people were troubled by complicated payment billing work because most of the work was done manually. 70% of Metromile's customers are able to complete the billing process the day of the accident. Also, it is not necessary to call the repair shop directly for a car repair request in the event of an accident. All you have to do is select a repair shop through the app and make a reservation from the app.

Cuvva leverages the power of digital technology to give their customers an efficient and simplistic user experience. Cuvva not only sells itself on being a PAYG short term car insurer but boast of additional great features including simple sign-ups,  lightning fast, hassle free cover by utilising the power of your phone. Applications are processed through the Cuvva app where you can manage your policies, get quotes, buy stand alone policies, check your documents as well as your MOT and Tax all in one place. Users must activate the Cuvva app when driving by turning it 'ON'. Your comprehensive coverage will automatically become effective and you will be charged for the time you drive.

Policyholders considering switching to an hourly rate plan should consider the following:

• Whether Paying hourly, weekly or monthly where premiums are calculated, makes this policy an unattractive option. For many driving policyholders. This makes people who drive often less likely to buy short term insurance. On the other hand, this is a great option for people who use public transport and don't need to use their car very often.

• If Paying by the hour is a viable option: Hourly rate insurance is designed for people who drive infrequently and willing to pay-as-they-drive. Savings are more likely to be made with those driving less than 4,000 miles a year.   

• The amount of money you can save: It all depends on the number of hours you drive. Hourly rate coverage could be feasible for those who drive occasionally enabling them to limit their coverage to the time spent on the road. To see how much you can save, policyholders can get quotes from traditional car insurance providers and short term pay-as-you-drive insurers and use estimated annual time spent actually driving as a predictive marker when calculating the cost of each option.   

• If you can cancel it? Typically, Policyholders can cancel their plan at anytime but many providers charge a fee when they do so. However, if the policyholder switches to the traditional unlimited mileage policy, this fee will be exempted. Refund policies vary across companies.

• What it covers? Typical short term car insurance covers damage, accidents, theft, fire, medical expenses for other drivers and claims for other drivers.

Final thoughts
Both companies offer unique car insurance products. However,  pay-per-milage insurance could be more difficult to track for many drivers because the average motorist doesn't calculate or keep track of how many miles they may drive. If there is any unexpected driving needed, motorist may not have adequate coverage for the addition miles anticipated. However, short term insurance cover wherein drivers pay by the hour, day or month maybe an easier option for motorist to manage their insurance cover because its just a matter of tracking how much time you have left of protection instead of calculating and tracking the milage for your destinations. 

 

WHAT IS PERSONAL INJURY PROTECTION (P.I.P)?

Personal injury protection (P.I.P.) is also known as not-at-fault insurance coverage. It is a special coverage offered by insurance companies in the U.K., covering medical costs associated with an auto accident. P.I.P. covers healthcare costs for you and injured passengers, even if they don’t have health insurance coverage.

Your health insurance will cover additional expenses if medical care costs exceed your P.I.P. insurance limits. Bear in mind that P.I.P. limits the amount per person if multiple people have been injured in the accident. In today’s article, we will tell you how P.I.P. works and whether you should get this coverage type. Read on!

How Does P.I.P. Insurance Work?

Personal Injury Protection or P.I.P is based on no-fault principles. If you have P.I.P insurance, the company will cover you for injuries and medical costs. P.I.P insurance does not rely on third-parties involved in the crash. The insurance company does not need to prove the third-party at-fault driver.

Likewise, you don’t need to prove your innocence or not-at-fault after the accident. Because P.I.P insurance does not require such requirements, some people say that it is a viable insurance option for drivers in the U.K. However, research shows that P.I.P value has a limit.

Sometimes, your healthcare costs may go beyond the limit of your P.I.P insurance policy. Although it is not mandatory for you to have this type of coverage, it can help you if your regular car insurance does not cover you.

Unlike other car insurance policies that usually predetermine the coverage costs, P.I.P insurance can cater for healthcare costs and medical bills, which are not covered by the standard insurance policy.

Do you Need P.I.P?

The no-fault aspect is an essential feature of P.I.P coverage. Your insurance company will pay for your medical expenses and lost income, even if you are an at-fault driver. You will report a claim to your auto insurance provider.

The insurance company pays benefit or medical bills that would have previously required the victim to demand compensation from the at-fault party. On the other hand, P.I.P will pay you even if you have caused the accident.

It is crucial to understand the difference between P.I.P claims and Tort liability claims. Tort refers to a negligent act or wrongdoing that one person commits against another. Your action is considered a tort if you cause injuries to another party by hitting his or her car.

When an individual causes harm, no matter how mild or severe the injury, the victim has the right to file a lawsuit against the tort to get compensation for the damages. When you have P.I.P insurance, you can avoid filing a lawsuit or make a liability claim. Thus, this saves your time and gives you peace of mind.

Final Words

No-fault insurance or P.I.P can save you from filing a lawsuit against the at-fault party. Not only does this save you save time, but it also helps you avoid paying additional costs to your lawyer. Because P.I.P insurance limits lawsuits and liability claims, insurance

premiums are usually lower than other coverages, making P.I.P a good option for motorists.

DO I NEED EXTRA COVER IF I USE MY CAR FOR WORK?

Suppose your manager asks you to deliver some important documents to the other office branch on your way home from the office. Your manager says you will get an hour of overtime pay for this task. The question is: will your personal auto insurance cover you since this is a work-related trip?

What if you get into a car crash and cause £5,000 in personal injuries to the other party? What if the other party files a lawsuit that ends up in £10,000? Do you have coverage from the insurance liability?

Will you pay out of pocket, or will your company cover the additional costs that your policy does not cover? These are crucial questions asked by most employees who use their cars for office-related trips. In today’s article, we will give you some essential details. Read on!

Do you Need Extra Cover?

Most insurance companies in the UK cover their clients when they use their cars for business purposes. However, there are a few exceptions that can invalidate your coverage. For instance, if your employer pays you for the task, your insurer will invalidate the coverage. UK insurance companies have strict policies and rules regarding “livery.”

Bear in mind that sharing mileage reimbursement and ride expenses does not affect your coverage. Likewise, most insurance companies in the UK allow for using your car or vehicle for general business use, such as visiting customers, transporting packages, and attending meetings or seminars.

According to UK law, employers are responsible for their employees’ actions, such as business-related trips and accidents. Generally, the business insurance policy covers vehicles owned by the company or by their employees when used for work purposes. It means you don’t need extra coverage if you use your car for work.

You should discuss the matter with your insurance agent or company to know the type of coverage you have and if the company covers non-owned and rented cars under this policy. Employers need to buy extra car liability insurance if they use rented vehicles.

How to Get Cover for Business-Related Trips?

Although you have a personal auto insurance policy, your insurer may not cover you if you cause a car accident or get injured. For instance, this often happens when your employer pays you extra money for the task (livery.)

That’s why your employer needs to add you to the business insurance policy to ensure you get cover when driving for work-related trips. Ask your employer to discuss his or her business needs with their insurance agent so you can get the best coverage while driving for the company.

You can also talk to your insurer or agent to learn the type of coverage you need to add to your policy if you make frequent trips for your employer. Bear in mind that your employer will consider your driving history, claim records, and other factors before adding you to the company’s business insurance policy. Most employers want to ensure their employees are not a liability to the company.

Final Words

Most insurance companies in the UK will cover you if you use your car for work. However, the exception is that you don’t get extra pay or overtime fee from your employer. Talk to your insurance agents and discuss the matter with your company’s manager to ensure the best coverage. 

WHAT TYPE OF COVER DO UBER DRIVERS NEED IN THE UK?

Uber requires their drivers to have a car insurance policy in the UK. The company provides supplemental coverage to drivers when their uber app is “ON.” When you turn “off” the app, you are covered by your own personal auto insurance.

Most drivers believe that the company’s policies, rules, terms, and conditions are inflexible and harsh. Uber started its business operations in the UK in 2012. Since then, the company has been providing opportunities to thousands of people in the UK to earn a decent living.

According to Uber, UK drivers must obtain private hire car insurance to cover for hire and reward. In today’s article, we will discuss the type of insurance coverage that Uber drivers need in the UK. Read on!

Types of Covers for Uber Drivers in the UK

Research shows that UK taxi insurance focuses on traditional coverage options. All drivers require taxi insurance if they want to carry passengers for hire and reward. It is crucial to maintain your car in good condition and obtain a legal license. Public hire and private hire insurance are two types of taxi insurance in the UK.

Public hire insurance is essential for drivers that pick passengers up without a prior booking. On the other hand, drivers require private hire insurance if they intend to pick passengers up based on pre-booked fares.

Uber drivers in the UK have three traditional insurance coverage options: comprehensive, third-party only, and third-party fire and theft. Let us talk about them in detail. Continue reading!

Comprehensive Coverage

Comprehensive insurance covers your car for damage, even if you at-fault driver. Your insurance company will cover you when you are a victim of fire, vandalism, or theft. The company will also cover third-party liabilities.

For instance, if you are an at-fault driver after a crash, your insurer will pay the other party’s losses. As an Uber driver, you must continue working by getting back on the road after a car crash. That way, you can maintain a steady flow of income. If you want to protect your daily work as an Uber driver, we recommend choosing comprehensive coverage.

Third-Party, Fire and Theft Coverage

Although Uber provides you with supplemental coverage, it is crucial to have your own insurance policy. As mentioned earlier, when you turn off your Uber app, the company is no longer liable to cover you.

Unlike comprehensive coverage, when you choose the third-party insurance policy, the company will cover you for the cost of damages and repairs to another vehicle. UK insurance companies that offer third-party, fire, and theft coverage also protect their clients from various types of claims.

These include compensation for personal injury and property damage if you have caused the accident. Your insurer will also cover you for fire and theft. For instance, if someone steals your car and the police fail to recover it, the insurance company will help you get back on the road.

Third-Party Only Coverage

Third-party only is a type of insurance an Uber driver requires if he or she causes injury or damage to another person or property. In that case, the insurance company will cover you for injuries sustained by your passengers or property damages.

Final Words

Uber requires drivers in the UK to maintain comprehensive coverage on their car insurance policies. If you have a comprehensive insurance policy, Uber will hold insurance for you and cover you for personal injuries or physical damage to your vehicle up to its actual value, whether you are at fault or not.

ARE THERE ANY INSURANCE DISCOUNTS FOR DRIVERS DURING LOCK-DOWN?

Research shows that UK insurance companies had a 9.8% Net Combined Ratio (NCR) in 2020. The increased profitability is due to the strict Covid-19 lockdowns in the country. UK insurance market recorded a mammoth underwriting profit in 2020 due to a reduction in insurance claims.

Although the costs fell by 12%, NCR for 2020 had a 7.2% improvement compared to 2019’s figures. Covid-19 has a significant impact on people worldwide. It has affected people in terms of health, business, and economy, including the insurance industry. Are there any insurance discounts for drivers during the lockdown? Find out in this post!

Insurance Policies and Discounts in the UK during Covid-19

UK drivers criticize insurance companies for no providing discounts or refunds during the Covid-19 pandemic. The criticism is from drivers who drive fewer miles due to the lockdown. Insurance companies in the US, Canada, and European countries offer general premium discounts and refunds.

The offerings are due to the reduced number of accidents during the lockdown. Experts say that premiums will relatively remain low until strict lockdown policies are lifted. However, the situation is different in the UK.

UK insurance companies are concerned that they would receive many claims once the government lifts the lockdown. Drivers would return to the roads in significant numbers, increasing the number of claims. As a result, insurance companies will face a shortfall for a long time.

Mid-Terms Policy Adjustments

UK drivers continue to ask their insurance companies to decrease the annual mileage figure on their policies. Although this would lead to a partial premium refund, insurance companies say they would charge a mid-term adjustment (MTA) fee, ranging from £25-50.

Direct Line is one of the most popular insurance company in the UK. Recently, the company announced that they would not charge for MTAs. It means their customers can reduce premium rates at no additional fee or cost if they drive fewer miles.

According to the company, those who can drive fewer miles on the roads than the original estimated figure in their policy, they can contact the company for discounts or refunds. However, Direct Line requires its customers to reduce the mileage to 1,000 per year.

Direct Line and other insurance companies in the UK have not quantified the discount size because it depends on the insurance policy and the car. However, a reduction in premium rates is directly proportional to every 1,000 miles taken off the annual mileage. For instance, if you drive 5,000 miles less per year, you will receive five times more discount.

Moreover, Aviva is another famous car insurance company in the UK that has not established a discount policy for its customers during the lockdown. According to Aviva, the company calculates premiums to cover expected costs for one year of the customer’s policy. If someone can’t pay their monthly premiums, he or she should contact the company for further discussion.

Final Words

Car insurance companies in Europe and North America has made substantial efforts to provide discounts to their customers. However, UK companies are reluctant to the change, meaning not many insurers will give discounts or reduce premiums during the lockdown.

WHAT CAN I DO IF I HAVE AN ACCIDENT WITH AN UNINSURED DRIVER?

People in the UK have suffered a lot for many years because car insurance policies are typically costly. According to the Road Traffic Act, UK, all drivers require to have at least third-party insurance coverage.

It is a type of insurance that will cover you for the injury or damage caused to the third- party. UK law states that not having an insurance policy leads to hefty fines, license suspension, and even imprisonment. The law enforcement agencies may also seize your vehicle.

When you are in a car crash with an untraceable or uninsured driver, not only do you suffer from personal injuries and damages, but it is also frustrating to get compensation. A recent report shows that there were over 1.2 million uninsured drivers in the UK. That's the reason road accidents are prevalent in the UK.

Besides, third-party insurance is the minimum requirement for drivers in the UK. It will cover you for the damages or injuries caused to other people or properties if you are an at-fault driver. But what can you do if you have an accident with an uninsured driver? Let's find out in this post! Read on!

What to do if an uninsured driver hits you?

An uninsured driver will do his best to avoid giving you any personal details. It is a daunting task to get any information from an uninsured driver, even if he sticks around. When you are at the accident scene, make sure you take photos on your smartphone, record the driver's description, and ask for witnesses' contact details.

Experts recommend noting down the uninsured car details, such as the make, model, number plate, color, and other information. Besides, call the police and let them know about the untraced or uninsured driver. Make sure you also contact your insurer and give them details on the accident.

Contact the Motor Insurance Bureau (MIB)

If you have received personal injuries or damages to your car, contact the MIB. It is a not- for-profit organization established by insurance companies in the UK to support drivers hit by untraced or uninsured drivers. MIB also covers drivers hit by uninsured drivers in foreign countries.

The organization has an uninsured drivers' agreement, enabling you to claim compensation against the driver who caused the accident. MIB has two agreements: the uninsured drivers' agreement and the untraced drivers' agreement.

The first one allows you to claim compensation against the third-party driver with no insurance policy. The MIB will settle your claim if the uninsured driver is unable to pay you for the damages. On the other hand, the untraced drivers' agreement enables you to claim compensation for their injuries or damages after being hit by an unidentified driver.

How to Make a Claim?

The claim process is pretty straightforward, thanks to the MIB's driver-friendly policies. Go to the official website and download the claim form. Fill the form yourself or seek help from a lawyer. You can submit the form directly or through your solicitor.

Make sure your lawyer has experience in dealing with MIB claims. The purpose is to get the compensation you deserve. Bear in mind that you can claim personal injuries, medical costs for injury treatment, losses caused by injuries, and earnings loss.

Moreover, you can apply for car damages, repairs, and replacement. However, this is possible when you don't have a comprehensive insurance policy. Although MIB has victim- friendly policies, talk to your lawyer before making a claim, especially if you want compensation for property damage.

DO INSURANCE COMPANIES BROWSE YOUR SOCIAL MEDIA?

Research shows that over 3.5 billion people actively use social networking websites daily. Social media users are most active on Facebook and Instagram. About 52% of young people use these sites, while 48% are above the age of 45.

Insurance companies consider a wide range of factors to determine your rate. These are your age, gender, marital status, location, credit score, and claim history. Although social media is not a significant factor in determining the insurance rate, some insurers review people's social media profiles before approving their insurance applications. Read on!

How do Insurance Companies Use Social Media?

Research highlights that most insurers use social media sites like Facebook, Twitter, Instagram, and Pinterest for marketing and advertising purposes. However, some companies use social media to collect information on their customers. Experts recommend that one must not give up their Facebook or Instagram account information to the insurance provider until there is a requirement.

Whenever a person files a claim, and the insurance company doubts it, the staff launches an investigation. Social media sites, such as Facebook and Instagram, provide an opportunity for insurance adjusters to research and gather information on the parties involved in the claim.

Recent reports highlight that some people attempt to commit fraud, but thanks to the data collected from their social media profiles, insurance companies can mitigate them successfully.

Here are a few things insurance companies look for in your social media profiles.

Photos and Videos

Many people take photos and videos when they drive their cars on highways and roads in the UK. According to numerous insurance companies in the UK, uploading your pictures or videos to Facebook and Instagram is inappropriate. If the insurance company spots something like that on your profile, they will consider you a distracted driver and cancel your policy.

Screenshots

Sharing your text conversations screenshots while driving can result in harsh consequences. Your insurance company will deny your claim after an accident and declare you as an at-fault driver if they find suspicious activities.

Geotagging

When you turn "ON" your camera, the geotagging features turn "ON" automatically on your phone. Insurance companies require their clients to avoid uploading photos on their social media profiles with geotags or locations. If the company found such images on your Facebook or Instagram profile, it would be considered negligence on your part, risking your policy and premium rates.

How to Protect Yourself?

There are several ways to protect your social media accounts from insurance companies. Experts recommend keeping an eye on your privacy settings. Make sure your photos and videos are viewable to "Friends only." Avoid setting your privacy to "Public."

WHAT IS INSURTECH RIGHTINDEM ABOUT?

Recent research shows that over 1,300 startups worldwide offer new products and apps, making it easy for people to purchase insurance policies. The UK insurtech industry has seen significant development in recent years, with many startups launching cutting-edge products to facilitate consumers looking to buy insurance.

Rightindem is a popular UK-based company that offers AI-based solutions to people, saving their time, money, and effort while buying insurance policies. In today’s article, we will talk about Insurtech Startup Rightindem. Read on!

What is Insurtech Startup Rightindem?

Insurance claims is a lengthy and daunting process for many customers in the UK. Rightindem is a startup company that continues to make significant efforts to streamline the insurance processes and facilitate customers to smoothen with self-serve claims.

David Stubbs is the founder of Rightindem Company that aims to enable consumers to use state-of-the-art smartphone applications to expedite their insurance claims and validate them quickly and effectively. All this saves time and money for customers.

Benefits of Rightindem

Rightindem is a web-based, self-service platform for insurance claims. The platform benefits both insurers and consumers. For instance, insurance companies use this web- based platform to reduce claim costs and customer churn rates.

Likewise, it is a transparent service for the customers, helping them understand their insurance policies and manage their claims effectively. The company follows a client- oriented approach, allowing consumers to interact with their insurers and process the claims on time. All this lead to reduced claim processing time, improving customer satisfaction.

Transparency and Control

Rightindem gives consumers more control via a transparent system, allowing them to interact with insurers and claim their compensation. The company has tailored policies and products that perfectly suit customers’ needs, enabling them to process their claims simply and quickly.

The web-based platform is easy-to-use and eliminates a significant amount of stress in the claim management process. Moreover, Rightindem has employed state-of-the-art identification and verification technologies, aiming to reduce the risk of frauds.

Guidance on Claims

Rightindem is a software-as-a-service (SaaS) product with a simple-to-use and user-friendly interface that guides consumers through their claim process. It allows consumers to enter accurate details of what happened during and after the accident.

You can capture photos and videos, provide information on the vehicle damages, and record other facts to make a reliable and factual claim. That way, you can get the compensation you deserve for your personal injuries and damages your vehicle has sustained.

Range of Products

Currently, Rightindem offers seven products, from electronic notification of loss to car damage repairs and settlements. The company’s philosophy is to ease the claim process for consumers, allowing them to control the pace and channel of engagement.

That way, it helps eliminate wasted time on in-person visits and over the phone. Besides, insurance companies use these products to maintain control over the customer experience. Companies can customize SaaS software based on their requirements or needs. Some of the best products are eFNOL Motor, eFNOL Marine, and Tracking Claims.

Final Words

Rightindem has transformed the insurance claim procedures. The company makes it easy for insurance customers to develop and manage their claims online instead of in-person visits to the insurance companies to communicate over the phone. The result is a more transparent and smoother claim process.

HOW DOES TELEMATICS INSURANCE WORK?

UK law requires motorists to have at least third-party liability insurance. A car insurance policy covers you and your vehicle. The amount of coverage varies from company to company, meaning the benefits included and monthly premium rates rely on various factors. These include your age, location, driving history, claim records etc. Remember, your gender and health history do not affect your premium rates.

Have you heard of Telematics Insurance? 

Unlike standard car insurance policies, Telematics, also known as Black Box Insurance, is an insurance policy that requires the insurer to rely on in-car tracking devices. That way, the company tracks, monitors and evaluate your driving habits.

Telematics is devices that track different aspects of your car, such as speed, mileage, and total driving time. The insurance company consider these factors to determine your insurance premium rates. Read on!

How Telematics Car Insurance Works?

Telematics insurance uses a cutting-edge technology device. When you apply for this type of insurance policy and the insurer approves your application, the staff will install a Black Box device within your vehicle. The Black Box is about the size of a matchbox installed behind your car’s dashboard. Most drivers don’t know the location of the Black Box.

The Black Box activates the GPS when you drive your car. The device sends specific information to the insurance company about the car’s speed, acceleration, cornering, and braking. That way, the company determines whether you drive your vehicle safely.

After evaluating your driving performance, the company provides you with a Driver Score. Bear in mind that this score changes every time you drive your car based on the speeding, braking, and other information that the Black Box sends to the company.

Drivers in the UK should track and evaluate their rides through a web-based portal or mobile app provided by the insurer. The purpose is to check your driving performance and see where you might have made mistakes. Thus, you can improve your driving and attain a better Driver Score, reducing your monthly premium rates.

Bear in mind that the Black Box Device installed within your car will monitor it 24/7, no matter who drives the vehicle. It does not depend on the driver, but the Score determined based on the factors above. Therefore, you must not allow other people to drive your car to reduce the risk.

Who can apply for Telematics Car Insurance?

Many drivers in the UK usually ask this question. The answer is: anyone who has a UK driving license can apply for this type of policy. For instance, you can consider telematics insurance once you have passed the driving test.

If you fail to pass the test, you can consider applying for a specialist insurance policy. It is a policy that provides coverage to learner drivers. People with no or limited driving experience can also apply for Telematics insurance.

Final Words

Experts argue that a Telematics insurance policy is slightly expensive for frequent drivers. The reason is that this type of insurance policy encourages low mileage, meaning if you make long trips or drive a lot you may end up paying higher premiums.

WHAT UK DRIVERS SHOULD KNOW ABOUT A 'GREEN CARD' WHEN DRIVING IN THE EU

Because the UK is no longer a part of the European Union, you will need a Green Card to drive in Europe. According to the UK Government, people traveling to the UK may also require an International Driving Permit (IDP).

For instance, if you drive a van for work in Europe, you need a CPC card. CPC stands for Certificate of Professional Competence. Besides, you may also need a valid passport and health certificates to drive a car in the EU.

Most people living in the UK who have the UK driving licenses are swapping them for EU- based licenses. Bear in mind that you can't renew the driving license in the UK. In today's article, we will talk about the EU Green Card and give you essential information. Read on!

What is a Green Card?

A Green Card is globally-recognized travel documents. It is a kind of car insurance policy for European citizens and foreigners. When you have a Green card, you will easily drive in the EU and make a claim. Most insurance companies in the UK offer free Green Cards to drivers. However, it is crucial to apply for the Green Card on time and receive it before traveling to the EU.

Do UK Drivers Need a Green Card?

If you want to drive in any EU country, make sure your insurance policy covers you. Ask your insurance company about the information on driving in the EU. That way, you will know if your existing insurance policy covers you outside the UK.

Contact your insurance company to know if it can upgrade your policy and provide coverage outside the UK. The purpose is to ensure a higher protection level, especially in the EU with strict driving rules and insurance laws. Bear in mind that if you want to upgrade your policy, the insurance company will charge you extra.

For instance, if you are traveling to the EU, you will need to add European cover as an extra option in your policy. Research shows that insurers typically cover their customers for up to one month. Check your insurance policy thoroughly, and once you approve it, you can ask the insurance company for a Green Card.

You will also need a GB Sticker, letting the authorities know that you have a UK-registered vehicle. You must attach the sticker to your number plate. You can't travel or drive in the EU if you don't have a GB sticker, leading to hefty fines and even imprisonment.

Final Words

The UK left the EU in 2020. The country enters a transition period after leaving the EU. The transition period has ended in January 2021. It means all UK drivers will need a Green Card if they intend to drive UK-registered cars in the EU.

Remember, the Green Card is not insurance coverage itself but a document recognized in all EU countries as proof that your car is insured according to those countries' legal requirements.

Having a Green card allows you to receive coverage against a claim for the injuries or damages you cause to a third-party driver and car, respectively. Lastly, contact your insurance provider to know if you can get a Green Card.

WHAT AGE DOES CAR INSURANCE GO DOWN?

Young drivers usually have higher car insurance than older or experienced drivers. People who have passed their driving tests recently are all familiar with higher car insurance premiums. Higher premiums are mainly due to the increased risk of accidents on roads.

Many people say that car insurance goes down at the age of 25, meaning they have to pay less for their policies from that time. However, this is a misconception. There is no specific age when the car insurance premium goes down because it varies from company-to- company. Each company has its own criteria for increasing and decreasing premiums.

Age and Car Insurance – What are Facts?

There is no specific age rule that lets you know when the car insurance premium decreases. However, most insurance agents say that people can expect to pay more for their car insurance when they are under the age of 25. Once you are over 25, you may find that your car insurance price decreases. However, this depends on your insurance provider.

Premium rates in the UK are more expensive for young drivers. It means people between the ages of 30 and 40 will pay more than those who are 40 to 50 years old. Drivers aged 50-60 usually pay the lowest premiums because they have more experience on roads and do not get involved in accidents more often.

On the other hand, once people are above the age of 60, they tend to pay more. Although this does not mean a drastic increase, people at 60 and above have premium rates equivalent to drivers between 40 and 50.

Moreover, the increase and decrease of premiums depend on the number of claims you have made within the previous 3-5 years. For example, if you have been driving your car for a few years and building-up on the “NO Claims Bonus,” your insurance provider will steadily decrease your premiums from time to time.

How to Get Lower Premiums?

There are several ways young drivers can cut the cost of premiums. For example, you can store your vehicle in a garage at night instead of parking it on the road to increase its security. Besides age and experience, the insurance company also considers the car’s security methods.

If you do this for some time, you can decrease your premiums. Another way to lower your premiums is to look for alternative options, such as telematics or black box insurance. It requires you to install a device in your car. The device monitors driving safety, meaning if you drive safely on the road, you can adjust the premiums accordingly.

Moreover, shop around to find inexpensive premium rates. Some insurance companies in the UK provide reasonable rates to young drivers. Get quotes from multiple companies and compare them to choose the one that best fits your needs.

Final Words

Car insurance rates start to fall with increasing driving experience, fewer claims in the past 3-5 years, and low accident risks. Remember, even if you have 20 years of driving experience but have been making claims after claims, don’t expect to see a decrease in your premium. Likewise, if you are 35 years old, building-up on your “No Claim Bonus,” and follow the rules, you will see a steady decrease in your premiums.

WHAT ARE THE DIFFERENT TYPES OF CAR INSURANCE COVERAGE?

Insurance companies offer various insurance policies and deals in the UK, and many people find it challenging to choose the right one. However, when you understand the insurance types and the difference between each coverage, it becomes easier to choose a policy that best fits your needs. There are three types of coverage in the UK

1. ThirdParty

2. Third Party Theft and Fire 

3. ComprehensiveInsurance

1. Third-party

Third-Party Insurance Policy is the minimum level of cover you need to drive on the UK's roads. If you are not a regular driver, you still need this type of insurance. You will pay the premiums even if your car is in the garage for a long time and covered with dust. It is due to the Legislation "Continuous Insurance Enforcement" passed by the UK Government in 2011.

Besides, Third Party Insurance does not provide substantial protection or coverage and will cover injuries and damages caused to other people's cars or property. The insurance company will pay for the damages if you are an at-fault driver. Remember, Third Party Insurance does not cover your injuries or damages to your own car.

2. Third-PartyFire and Theft

Third-Party Fire and Theft Insurance is similar to "Third Party Policy." However, it provides an additional protection layer, meaning the insurance company will also cover your injuries

and damages to your car or property. As the name indicates, the company will pay for damage or loss if your vehicle is stolen or damaged by fire.

If you have an inexpensive car, you can choose this type of insurance than other options available to you. Remember, this is not the cheapest type of insurance coverage in the UK. For example, this type of policy's average annual cost was £828 in 2020. It is more costly than the average comprehensive insurance policy by over £300.

3. Fully Comprehensive

As the name indicates, fully comprehensive insurance coverage provides the highest level of protection to motorists. It provides coverage for damages to your car, third-party car, and pedestrians. Fully comprehensive insurance will also cover injuries, fire, theft, and other types of accidents.

Fully comprehensive insurance was the most expensive policy in the UK in the recent past. Because many young drivers opt for Third Party Insurance Policies, the price has gone up in recent years. Thus, experienced drivers choose a fully comprehensive policy due to its cheaper premium rates.

The average cost of this type of insurance was £490 in 2020. Bear in mind that each comprehensive policy is different and varies from company to company. Therefore, as a driver, you must take your time and understand the terms and conditions to choose a policy that best fits your needs.

Final Words

Choosing the right car insurance policy is a daunting task for many drivers. We suggest you do your research, go through each policy's terms and conditions, get quotes from multiple

insurers, and compare them. That way, you can make an informed decision and choose a policy that will fulfill your requirements.

HOW DO I CHECK IF MY CAR IS INSURED?

UK law requires all drivers to have valid car insurance to ensure safe driving on public roads. Not having car insurance can lead to severe penalties, especially if you have been involved in an accident and caused damages to a third-party vehicle or property.

Research shows drivers without insurance have a maximum penalty of 6-8 penalty points on their licenses. You will also have to pay a hefty fine of up to £5,000 depending on your earnings. In some cases, the court may cancel your driving license.

If you drive a car without insurance, the law enforcement agencies have the authority to seize or destroy your vehicle. The Police Department will refer extreme cases to the courts, meaning you can face driving disqualification, a huge fine, or even a jail sentence.

Some people have car insurance that undergoes an auto-renewal process. Because it is a completed process, some people have confusion knowing about their insurance companies or even if they have insurance at all. That’s why it is crucial to check whether you have car insurance. That way, you can streamline the renewal process or save yourself from complications associated with it.

Check on the National Motor Insurance Database

Experts recommend noting down your car’s registration number to see your insurance. You can check the registration number on the National Motor Insurance Database (MID). All Insurance Companies, Driver and Vehicle Licensing Agency (DVLA), and the Police Department have access to MID.

The UK Government allows all motorists to conduct a free search on the MID database. However, the MID will charge you a small fee if you want to get more details, such as the insurance company, policy information, and others.

Because MID does not resell their car insurance data, it is wise to avoid checking it online on third-party websites. Otherwise, you will just waste your time and get nothing. Therefore, the only place to find whether you have car insurance is to check on the official MID website.

What to do if you don’t have car insurance?

Most uninsured drivers receive 6-8 penalty points and £300 fine when caught by the Police on the road. If the Police Department sends your case to court, you will have an unlimited fine and a driving ban. It is a serious offense (IN10), meaning it reduces your chances of having inexpensive insurance in the future.

According to the Continuous Insurance Enforcement Law, if you don’t drive a car anymore, you still have to pay your premiums. For example, if your vehicle is in the garage for a long time, the insurance company will ask you to continue paying your premiums.

If you want to declare your vehicle “off the road,” you must contact DVLA and sign the “Statutory Off-Road Notification” (SORN). If you don’t have car insurance and SORN, you will still pay the penalties. This also applies to those who don’t drive their cars any longer. One way to solve this problem is to consult a legal expert or a qualified insurance agent.

Final Words

Some people check their vehicle documents or records to check whether they are insured. It requires you to act like a detective and go through all the documents you have at home. The best way to check car insurance is through the MID website if you want to save time.

HOW IS CAR INSURANCE CALCULATED?

The primary purpose of car insurance is to protect liability in the event of an accident, causing injuries to someone or damaging other people’s property. UK law requires drivers to carry a minimum amount of liability insurance. Car Insurance companies require a lot of information from their clients to calculate their premiums. The data is based on many factors, and in today’s article, we will tell how companies in the UK calculate car insurance. Read on!

Age and Driving Experience

Age is the most crucial factor companies consider when calculating car insurance. Most companies assume that young drivers have less experience and have higher risks of getting involved in accidents.

People with many years of driving experience have fewer risks of accidents on the roads. That’s why their insurance premiums are much lower than young drivers. For example, drivers aged over 40 years enjoy the cheapest rates on the market.

UK insurance companies consider people aged between 17 and 24 as young drivers. Likewise, insurers consider people aged over 70 as older drivers who have higher risks on the roads even with many years of experience. The reason is the health issues of older people that can increase the risk of accidents. It means higher premiums are directly proportional to age and accident factors.

Location

Insurance companies consider the location to calculate people’s insurance premiums. The company will look at your location and analyze crime level, road conditions, and the number of claims made for that area.

For instance, if you reside in the countryside, you will drive on quiet or less busy roads than those who live in an urban area. It means your car is at a low risk of being stolen in a small village or town.

Car Insurance Group Rating

UK law requires insurance companies to assign group ratings to all new cars to calculate insurance premiums. It tells the company about the expensive and cheapest cars. The group rating is based on various factors, such as the sale price, security level and performance, price of common parts and repair work, and emergency brake system.

There are 50 groups for car insurance, and the lower the rating, the cheaper the car is to insure. Bear in mind that your car’s group rating can change over time. For instance, if the company finds out that a particular car model has a higher number of accidents, it will increase the group rating.

Level of Cover

UK car insurance companies use three cover levels: third-party, third-party theft and fire, and comprehensive covers. The first one is the minimum level of cover requires to be on the roads in the UK. The company will cover you for damages caused to third-party cars or properties if you are found at-fault. However, the company won’t cover damages to your own vehicle.

The second one is the same as the first level of cover, except for covering your car from theft, damage, and fire. On the other hand, comprehensive coverage refers to the highest protection level to cover your own vehicle if vandalized or damaged.

Claims History

Claims also affect the premium price, and more claims mean increased premiums. That’s why the insurance company will figure out the number of claims you have made in the past. Most often, companies consider claims made within the last 3-5 years to see the probability of making another claim. Other factors companies analyze while calculating insurance premiums are:

•   Car make and model

•   Use and mileage

•   Car security methods

  Your Occupation

Final Words

Having car insurance in the UK is required by Law. If you are an at-fault driver, the car liability coverage on your policy will help you pay for covered losses, such as medical bills, vehicle, and property damage that results from the accident.