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.

HOW LONG DOES A CAR ACCIDENT STAY ON MY CAR INSURANCE RECORD?

Technically, car accidents never really disappear from your insurance record. But they do not affect your insurance rate and ability to get insurance coverage from insurers throughout your active years.

Most insurance companies in the United Kingdom will inquire about accident claims you made in the last three years or more. Some will also consider incidences in your insurance history in the past seven years or even up to ten years. 

Ideally, a car accident should remain in your insurance record and affect your premium for about five years. Some insurers will want to get more details about your claims before offering you auto insurance coverage. 

The importance of having adequate auto insurance cannot be overemphasised. It will protect the car, the car owner, and other road users from all manners of accidents and unforeseen circumstances. car insurance, however, is affected by some of the factors it protects you from. An accident, for instance, will affect your auto insurance in many ways. 

How long does an accident affect your insurance? 

This is a question that most people ask after an accident or even several years afterward. There is no one answer to this question, and we will discuss some of the most important things you need to know in that regard. 

How Will An Accident Affect Your Car Insurance? 

Insurance companies consider the risks involved in selling coverage to drivers. One of the ways they estimate the risks is to look at your driving history and insurance claims made in the past. Of course, accidents are integral parts of your driving history, and insurers will always consider it. 

Ideally, a recent accident or multiple accidents will increase your insurance premium. This is because insurance companies will treat you as a bigger risk than someone who has had an accident in many years of driving. Accidents can also affect your chances of getting insurance from some companies. 

Factors That Affect How Long A Car Accident Can Stay In Your Insurance Record

As mentioned already, the number of years an accident history will appear in your insurance record is not certain. There are different factors that can affect it, including the following major ones: 

• The insurance company you are trying to buy from 

• How long you have been using a particular insurance company 

• Your age 

• The type of accident 

• Whether you were at fault for the accident or not. 

Must You Report All Accidents To Your Insurer? 

To avoid tainting their insurance records, some drivers will decide to cover up an accident by not reporting to the insurance company. This is the wrong thing to do. Even if you have the money to
fix your car and don’t want to make a claim, inform your insurer about any accident you are involved in. All accidents are recorded in the Claims and Underwriting Exchange (CUE). If you don’t report an accident and your insurer finds out through other means, your insurance policy may be terminated. 

Conclusion 

In the United Kingdom, a car accident can remain in your insurance record for about five years or more. This doesn’t mean you should cover up an accident. Inform your insurer and make a claim if possible. To improve your driving safety in a manner that can impact your record positively, you can downsize your engine, fit an alarm, and take the Pass Plus qualification. Anything that can enhance safe driving can cushion the effect of an accident on your insurance.