Buying Car Insurance Online
A concise guide to buying car insurance online. Essential reading to avoid the pitfalls which may result in rejected claims. Absolutely free, but invaluable, information from an experienced insurance professional in the UK. Relevant anywhere in the world.
Content
Buying Car Insurance Online
An Essential Guide
Authored by:
www.dancasinsurance.co.uk [email protected]
Version 1.2 – Jun 2 1!
" Jamie Stephenson
Hello! If you are reading this guide, then you are probably considering purchasing car insurance online. I hope that this guide will enable you to do that with a little bit more knowledge, and as a result more confidence, than before. At the time of writing this, I am an independent insurance broker, based in the nited !ingdom. I ha"e worked in "arious capacities in the #inancial Ser"ices industry for o"er $% years, and ha"e specialised in motor, household and commercial insurance for the past & years. I ha"e watched with interest as, o"er the last few years, a rapidly growing trend has de"eloped in the !, and I'm sure worldwide as well, for people to buy their car insurance "ia the internet rather than ha"ing a thorough discussion with an insurance company representati"e or a broker. (easons for this are the con"enience of being able to obtain )uotes at your own pace and when it suits you* and a belief, perhaps not entirely +ustified, that online shopping is cheaper. ltimately, whate"er your moti"es for buying car insurance online, you are missing out on the "aluable, and often irreplaceable, ad"ice of a professional. ,ot e"eryone completely understands what they are buying when they take out car insurance. -here are a number of issues which, if not dealt with properly, can cause claims to be re+ected if the correct information was not pro"ided, either when the policy was first purchased, or later, when circumstances change. -his means that large amounts of money are being spent on policies which, ultimately, will not ser"e their purpose, as the information on which they were based is inaccurate. #or this reason, I ha"e decided to write this short guide to buying car insurance, in the hope that, at the "ery least, customers will ha"e the benefit of this information if they choose not to ha"e a full discussion around their insurance needs with a )ualified person. .efore proceeding, I must state the following $ points clearly/ 01 the information contained in this guide is not intended as a replacement for ha"ing a proper discussion with a broker. I would always recommend that, +ust as you should see a medical specialist when discussing your health, you should always consult an insurance specialist before making a purchase* and $1 as I mentioned in the introduction, I li"e and work in the nited !ingdom. I am therefore familiar with insurance practices within this country. -here are certain principles applicable to insurance which are standard no matter where you are, but there may be slight differences in the way insurers in other countries handle certain matters, and of course legal systems will differ greatly. If you are not a ! resident, this guide will, I'm sure, still be highly rele"ant for you, but please keep the abo"e in mind as certain of my comments may not be totally appropriate in your country of residence. -he manner in which I would like to approach this guide is to highlight certain of the key pieces of information for which you are likely to be asked when you go online and re)uest a )uotation. I will also try and e2plain why this information is necessary and for what purposes the insurance company asks these )uestions. In all cases it is "ital that you/ a1 ensure you pro"ide this information correctly when asked by your insurer* b1 check this information is correct when you recei"e your insurance documents, both after your initial purchase and each time you recei"e renewal or replacement documents* and c1 inform your insurer as soon as possible should any of this information change.
#ate o$ birth It may sound silly but this is a "ery important item of information, as insurance rates "ary depending upon the ages of the dri"ers of the "ehicles. 3ounger dri"ers pay more as statistically they are more likely to ha"e an accident. (ates decrease for dri"ers as they get older, up to a certain point when insurers might start to raise them again. 4hen you recei"e your insurance documents, look carefully at this and inform the insurer immediately if they 5or you1 ha"e made a mistake. 6ne digit being typed incorrectly 5i.e. 07%8 instead of 07&81 could cause a big difference in the premium charged as well as the insurance company's willingness to offer co"er, so if they find out following an accident that you are actually 0% years younger than they thought you were, don't be surprised if an argument ensues o"er payment of your claim. Address 6b"iously you need to ensure your address is pro"ided correctly or you may not get your paperwork. Howe"er, there is an e"en more important reason. Ha"ing obtained your physical address, your insurer will likely ask you to confirm that this is the address at which the car is usually kept at night. As most of us keep our cars at our home addresses, the answer to the )uestion is 9yes: in the "ast ma+ority of cases. Howe"er, if for any reason you keep your car at a different address you must make the insurer aware of this 5the address where the car is kept o"ernight is usually referred to as the 9risk address:1. An e2ample of when this might occur is if you keep the car parked in a family member's dri"eway because your home does not ha"e a suitable space. 6r you are attending college;uni"ersity and the car is parked outside your halls of residence for the ma+ority of the year, whilst your mail goes to your parent's house. Insurers use crime statistics to tell them which areas of the country are high<risk with regard to car crime, and which are safer, using the postcode as the key piece of data. So if you tell the insurer that your car is usually parked in a safe area, and they subse)uently disco"er that it is usually kept in a high<risk area, this could pro"ide grounds for the re+ection of a claim as you will ha"e paid a lower premium than you should ha"e. An important note to bear in mind here is that insurers do not e2pect your car to be parked at the declared risk address for =>& nights of the year. ?ost of us will occasionally spend a night in a different location at some point 5"isiting friends or family, holidays, etc.1 and the car will be our means of getting there. -his is normal usage and is acceptable. .ut this should be the e2ception, not the rule. If you feel that the car is fre)uently parked at an address other than the risk address, it is best to tell the insurer. -he insurer may also ask you how the car is housed at night, for e2ample, 9in the dri"eway:, 9garaged:, 9on the street: and so on. Again, you should be truthful here. If your postcode doesn't fall into a 9high<risk: category then the insurer won't be concerned about your car being parked outside. If, howe"er, you li"e in an area that has been ha"ing trouble with car thie"es, there is a possibility that the insurer might only agree to co"er the car if it is locked in a garage, or behind locked gates, at night. .e "ery careful, howe"er, if you tell the insurer that you keep the car in a locked garage. ?ost insurers lo"e to hear this as it reduces the likelihood of theft 5they may e"en gi"e you a discount1. .ut make sure you ask the insurer what would happen if, one e"ening, you forget to garage the car, it is left outside and is stolen. -he insurer may still pro"ide co"er but could, for e2ample, ask you to pay a higher e2cess. Alternati"ely, they could say that there is no co"er unless the car is garaged, in which case you need to make sure that you do not lea"e it outside! It is always best to ask these sort of )uestions upfront* don't wait until you make a claim to find out that you are not co"ered because you did not comply with the insurance company's re)uirements.
#escri'tion o$ (ehicle ?ost insurance websites will ask you to type in your car's registration number, and the site will automatically search for the make and model. Sometimes this facility may not be a"ailable, and you may be asked to select the make, model, engine capacity etc. from a list of options. @ither way, it remains your responsibility to ensure that the details reflected are correct. #or the purpose of setting premiums, insurers group similar cars together and rate them accordingly. If you put in the wrong details, the insurer may not charge the correct rate. #or e2ample/ two cars of the same make and model, but with different engine siAes, will probably not be listed in the same group, and will therefore attract different rates. If you mistakenly insure your car as a 0.B litre "ersion, when in fact it is a 0.C, then you ha"e paid too low a premium 5and "ice "ersa1. Value 3ou may be asked for the appro2imate book "alue of your "ehicle. Again, try and pro"ide as accurate an estimate as you can. #or "ehicles under D0%%% there will be an assumption that the car is older and, as it might be difficult to obtain spare parts, costlier to repair. )urchase date ,ewly<purchased cars take a little time to get used to 5as all dri"ers know1. -he higher risk of an accident in a car that has recently been ac)uired may lead some insurers to charge a slightly higher premium in such situations. So if the insurer asks when the "ehicle was purchased it is important to pro"ide accurate information. *o Clai+s #iscount 3ou will be asked how much ,o Elaims Fiscount 5,EF1 you ha"e earned. It is a common assumption, and a mistaken one, that if you ha"e not had a claim for 0% years, that you ha"e earned 0% years ,EF. Some insurers will only go up to a ma2imum of & years ,EF. If you say you ha"e 0% years ,EF, then subse)uently make a claim and are asked to pro"ide proof of your ,EF, you will ha"e a problem as you only ha"e proof of & years. So the correct answer to this )uestion is to pro"ide the actual number of years that your current insurer is gi"ing you and which appears on your paperwork, as you can easily pro"e this in need. And remember that the ,EF can only be used on one "ehicle at a time. If you purchase a second car and are still using your ,EF on the original "ehicle, you cannot use the same ,EF on the second car. -his car needs to 9earn: it's own ,EF. -o help dri"ers in this position who also ha"e good claims records, some insurers may offer an introductory ,EF. Gook out for this option as it can make a massi"e difference to the cost. E,cess 3ou may be asked to select a "oluntary e2cess 5i.e. the amount that you are prepared to pay in the e"ent of a claim1. Fon't forget, howe"er, that most insurers will automatically include a compulsory e2cess. 3ou need to carefully check the )uotes you are gi"en to see what the compulsory e2cess is, and add it to your "oluntary e2cess to determine the total you will ha"e to contribute. ?any people ha"e recei"ed nasty surprises following minor accidents when they disco"ered that, instead of paying the D0&% "oluntary e2cess which they selected, they in fact also had to pay a compulsory D$%% as well! -he rationale behind paying a "oluntary e2cess is that it makes your premium cheaper 5because you
are taking a larger share of the risk upon yourself1. Howe"er, in reality, a "oluntary e2cess does not always reduce the premium by as much as you might think. 6nline )uotes usually gi"e you the ability to change the "oluntary e2cess and re<)uote, so do this for a few different amounts and see what it does to the premium before making your final selection. Class o$ -se -he term 9Elass of se: refers to the acti"ities that you will be using the car for, and most insurers use the following terms, or "ariations on these/ Social, Fomestic H Ileasure se 5SFI1* Social, Fomestic H Ileasure se with Eommuting 5SFIHE1* .usiness se 5which is then split into "arious classes depending on details such as whether only the policyholder dri"es, or whether other employees also dri"e, amongst other things1. It is not necessary for purposes of this guide to go into further detail on this matter, discuss in full with your insurance company in need. ?ost people ha"e a basic understanding of these concepts. If you do not work, then you will probably need SFI only* if you are an employee and you dri"e your car to work and back, then you will probably need SFIHE* and if you are self<employed or own a company, and use your car for business<related matters, then you will need one of the classes of .usiness se. Howe"er, there are some important points to be aware of/ • If you are using your car for a purpose for which you ha"e not insured it 5i.e. you dri"e the car to work, but only ha"e SFI co"er, you not only run the risk of ha"ing your claim re+ected if you ha"e an accident whilst commuting, but you could also be committing an offence by dri"ing without the correct insurance* It makes no difference how often you use the car for work. 3ou must ha"e the correct insurance at all times, so the fact that you only do piecemeal work, say once or twice a month, is no defence if you are caught dri"ing to work with SFI co"er only. It also makes no difference if you are paid for the work you do. If you do "olunteer work 5say at a charity shop1 and commute to the shop in your car, you must ha"e SFIHE to be properly co"ered. Eommuting is considered to be tra"elling to and from the SA?@ place of work, so if you work in an office or a shop, in the same location e"ery working day, then SFIHE will usually suffice. Howe"er, you could work for an employer who re)uires you to tra"el to different locations fre)uently 5temporary teaching staff, for e2ample1. In such a case, the fact that you tra"el to different locations may mean that SFIHE is not sufficient, and you might actually need one of the classes of .usiness se. 3ou need to discuss this openly with your insurer to make sure you get the right le"el of co"er in place from the beginning. .ut what happens if you work in the same office for 77.7J of the time, but occasionally your employer sends you on a training course at another "enue, or asks you to help out at another office ; storeK 3ou certainly do not want to be paying the higher rate for .usiness se to cater for one or two days in the year that you might be sent somewhere else. -he answer to this is that it is possible for employers to arrange a contingency policy which co"ers their employees in such cases. 3ou should speak to your employer and establish if such a policy is in place. If not, you need to ensure you speak to your insurer before making such a +ourney. -he circumstances of each case will determine whether your insurer re)uires any additional premium or not, but this should not be the primary issue, as it is certainly better to pay a little e2tra than to ha"e no co"er in the e"ent of an accident.
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Occu'ation 4hat you do for a li"ing is important to an insurer, as it gi"es them an idea of what types of risk the car faces on a daily basis. -his may be a direct risk, for e2ample if you use your car for business 5and ha"e selected .usiness se as your Elass of se L see abo"e1. Someone carrying "aluable samples of goods 5i.e. computer e)uipment or +ewellery1 will present a much higher risk of theft than an accountant "isiting clients. -herefore, it is important that you tell your insurer e2actly what kind of work you do. A common mistake is to omit to inform insurers about $nd occupations. An accountant suddenly takes on a lot more risk if he starts a part<time business deli"ering +ewellery and uses his car for this purpose. -he insurance company needs to know about these acti"ities or there e2ists the risk of claims being re+ected. @"en if you don't use your car for business, it is still important that your insurer has full details of your occupation. Insurers may consider some occupations riskier than others, e"en if you are only commuting to or from your place of work. An e2ample could be someone who works in a pub, and whose car may therefore be parked in the town centre at night. Insurers would probably consider this a higher risk than someone who works 7 L & in an office. .e(el o$ co(er -he le"els of co"er that you can select when insuring your car are fairly standard across most insurance policies. -he a"ailable options are/ • • • Eomprehensi"e -hird<Iarty, #ire and -heft -hird<Iarty only
Sometimes the term 9#ully Eomprehensi"e: is used. -his is +ust a pointless term which has found it's way into our language. -here is no difference between Eomprehensi"e and #ully Eomprehensi"e. -he most basic form of co"er is -hird<Iarty 6nly, so you would e2pect it to be the cheapest but this isn't always the case 5more on this later!1, -hird<Iarty 6nly co"er will co"er the damage suffered by the third<party, either physically to themsel"es 5i.e. due to in+ury1 or to their property 5the damage to their "ehicle or perhaps their garden wall if you were to dri"e into it1. -he other le"els of co"er all build on the one before/ -hird<Iarty, #ire H -heft pro"ides the same co"er as -hird<Iarty 6nly, but also includes co"er for damage to your "ehicle as a result of fire, and will also compensate you for the theft of your "ehicle. ,ote that most, if not all, policies will co"er damage by attempted theft as well, so if the thief is unsuccessful in their attempt to steal your car, but causes damage in the process, you should still be co"ered. .est to check this with the insurer if there is any doubt, though. #inally, Eomprehensi"e co"er starts from where -hird<Iarty, #ire H -heft finishes, and also includes 9Accidental Famage: co"er, meaning that you will also be insured for the damage to your own car, e"en if you are responsible for the accident. Ha"ing stated a few e2amples abo"e of when and where you will be co"ered, it is important to mention at this point that your policy will contain 9e2clusions:, which are situations when, if they occur, you will not be co"ered. It is "ital that you are familiar with these and ensure that you do not
allow them to become rele"ant. -hey are mostly common sense issues such as the fact that your co"er may not be "alid if you dri"e whilst dis)ualified, or if you use your car for racing or speed< testing. -he reason I make this point is to highlight the fact that, +ust because you may ha"e Eomprehensi"e co"er, this does not mean you are co"ered for e"ery possible e"entuality. (ead the e2clusions and speak to your insurer if you ha"e any concerns about them. I raised the point earlier that -hird<Iarty 6nly ; -hird<Iarty #ire H -heft, whilst not pro"iding as much co"er as Eomprehensi"e, may not necessarily be cheaper. Some insurers might think that, if you are not bothered about insuring your car for Accidental Famage, that your attitude towards safe dri"ing might be a little bit too rela2ed. Insurers often prefer to insure cars on a Eomprehensi"e basis 5for cars abo"e a certain "alue you may find that only Eomprehensi"e co"er is a"ailable1, and therefore offer cheaper rates for the higher le"el of co"er. If you are considering insuring on a -hird<Iarty #ire H -heft 5or -hird<Iarty 6nly1 basis to keep your premium down, then I strongly suggest that you get a Eomprehensi"e )uote as well, you might +ust be surprised! 3ou may also find that the insurer throws in a few additional benefits if you choose Eomprehensi"e co"er, such as 9Fri"ing 6ther Ears: 5see below1 or free glass replacement. 3ou might miss out on these benefits if you don't take out Eomprehensi"e insurance for your "ehicle. #ri(ers 3ou ha"e the option of deciding, with your insurers agreement, who you would like to insure to dri"e your "ehicle. -he cheapest option is almost always to insure yourself and only you 5the insurer may use terms like 96ne dri"er only:, 9?ain Fri"er only: or 9Iroposer only:1. If you are the only person who is likely to be dri"ing your car, then this is probably the option for you. If you ha"e a spouse ; partner, or anyone else who you allow to dri"e your car, then you will be able to add this person as an additional dri"er. -he insurer will want to know the same details about this person that they know about you, with regards to con"ictions, claims history etc. If there are a number of people who dri"e your car, you should be able to name them all. 3ou may also ha"e the option of insuring the car on an 9Any Fri"er: basis, which caters for those situations where a large number of people may be re)uired to dri"e a particular car. -his is usually appropriate for businesses who ha"e a company car 5or fleets of cars1 and who may re)uire an employee to run an errand or "isit a client at short notice, so instead of naming each and e"ery employee on the policy, they simply arrange 9Any Fri"er: co"er. -he cost of this will naturally be significantly higher than naming the dri"ers, as the insurer is not being pro"ided with e"eryone's dri"ing histories and con"ictions, so they will set the premium to reflect the additional risk they are taking. -his risk 5and the premium1 can be reduced by restricting the age of the allowed dri"ers, so you may choose to insure your car for 9Any dri"er o"er $&:, for e2ample, so that the insurer knows that there are no dri"ers from within the riskier, under $& age group. Howe"er, it is possible that you may wish to allow a number of people access to your car without it being for business purposes. 3ou may li"e with your parents and ha"e B or & brothers and sisters for e2ample. In such a case, ask the insurer to gi"e you )uotes on a 9,amed Fri"er: basis 5naming each indi"idual dri"er and pro"iding their details, as abo"e1, and 9Any Fri"er: and choose which is better for you. Some insurers will not allow 9Any Fri"er: co"er unless it is for a business, and may therefore insist on ha"ing each and e"ery dri"er named. 4here you ha"e named more than one dri"er, or ha"e selected an 9Any Fri"er: option, you will be asked to name the 9?ain Fri"er:. In most cases, this will of course be you, if you are the owner of
the "ehicle, but this is not necessarily the case. -he ?ain Fri"er is the person who uses the car the most, as the name suggests. Metting this wrong can ha"e serious conse)uences 5see the section on 9#ronting: below1. Ilease remember that all the other dri"ers are sub+ect to the same restrictions that you ha"e placed on yourself 5unless the policy specifically says otherwise1. #or e2ample, if you commute to work in your car, and ha"e therefore selected SFIHE co"er, then your named dri"ers will also ha"e SFIHE co"er, and if one of them uses your car for business purposes they are dri"ing without the correct insurance, they could be charged with a criminal offence and you run the risk of your claim being re+ected if they ha"e an accident whilst on such a trip. If you think one of your dri"ers will ha"e a need to dri"e the car for business then you need to make prior arrangements with your insurer. /ronting -his is a "ery serious issue which can 5and often does1 lead to claims being re+ected and prosecutions for fraud being made. -he simplest definition I can gi"e for fronting is that it is claiming that one person is the main dri"er of a "ehicle, when in fact someone else actually is. -he most common e2ample is a parent claiming to be the main dri"er of a "ehicle, but instead the teenage son or daughter is the real main dri"er. -he moti"e for doing this is simply to sa"e money. -he insurers assessment of the risk is based mostly on the main dri"er 5as they use the car most fre)uently1, with a smaller weighting gi"en to the additional dri"ers. If you are aged B& with an e2cellent record, your premium is going to be significantly less than a 07 year old with only a year's dri"ing e2perience 5if all other details are the same1. So, as the identity of the main dri"er has the biggest influence on premium it is clearly going to be cheaper for 9Fad: to say that he is the main dri"er, and 9Son: an additional dri"er, rather than the other way round. -here is nothing wrong with this, if this is actually the truth! If 9Fad: is genuinely the main dri"er of the car 5i.e. he dri"es to work in it e"ery day1, he can name 9Son: as an additional dri"er so that 9Son: can use the car to "isit his friend in the e"ening, once or twice a week. ,othing wrong with that at all. Howe"er, if 9Son: uses the car daily 5perhaps to go to college1 and 9Fad: rarely uses the car 5he may ha"e another car, or he may prefer the bus1, then this is not a truthful representation of who is genuinely the main dri"er, which means the insurance company is charging far too low a premium for the risk that they are taking. 4hilst the 9young dri"er: scenario described abo"e is the most common e2ample of fronting, it is by no means the only one. If the true main dri"er of a car has a high incidence of claims, or a number of points on his licence, he might try to benefit from a lower premium 5or lower e2cesses1 if he claims to be +ust an occasional dri"er, and names his partner, whose record is clear, as the main dri"er. -his, too, is an attempt to mislead the insurer, and could also lead to criminal charges and re+ection of claims. Clai+s 0 Accidents -his goes without saying but you must declare claims when asked by a potential insurer. If they ask for details of claims within the last = years, and your last claim was B years ago, then you do not need to say anything as the insurer is only interested in the last = years. Howe"er, if they ask for details of claims in the last & years, then you are obliged to disclose this information. Insurers are not looking for you to be 0%%J claim free* they appreciate that accidents happen, cars get stolen etc. .y asking for your claims history they are wanting to make sure that you are not someone who dri"es irresponsibly and therefore has fre)uent accidents, or lea"es your car in )uestionable locations where it is likely to be stolen. If you e2ercise reasonable care and attention to your car,
and to your dri"ing, then you are unlikely to ha"e such a bad claims history that an insurer refuses to co"er you, or drastically inflates your premium. If you do ha"e fre)uent claims, you need to e2amine why this is the case, and do something about it 5consider taking the bus, perhaps!1. .ut under no circumstances should you consider hiding this information from the insurer. Fetails of all claims are now housed in a central database to which all insurers contribute. If you make a claim, it is standard procedure that your details are checked against this database, so if you ha"e failed to disclose a claim there is e"ery likelihood you will be caught out. Just don't do it! 3our insurer may also ask you to declare any accidents or losses that did not result in a claim. Again, if this applies to you, then you must disclose it. 3ou could be a reckless dri"er who is lucky enough to be a panelbeater by trade 5or be good friends with one1, so you are able to sort out most of your accident damage without in"ol"ing the insurance company. 4hilst this means that you may be unlikely to make claims for minor damage 5which could count in your fa"our with the insurer1, they still need to know the truth behind your dri"ing record. 1otoring Con(ictions Eon"ictions for motoring offences 5such as speeding1 should be handled in the same way as your claims history. 4hen the insurer asks 5and they will1, then you must tell them. -hey will usually specify a time period that they are interested in 5the last = or & years1, so if your con"iction date falls within this period, then tell them. #or more serious offences, such as drink<dri"ing or dri"ing without insurance, the time period may well be a lot longer. -he key, as with all these things, is to answer the )uestion honestly. -he date of the con"iction is the important date, not the date of the actual offence. -herefore, if you were caught chatting on your mobile phone whilst dri"ing, and this happened & years and $ months ago, and you were con"icted B years and 0% months ago, then you need to declare this if the insurer asks you for details of con"ictions in the last & years. As with claims, minor and 9one<off: incidents do not usually cause you to be penalised too badly, if at all. Nery good dri"ers occasionally make mistakes or lose concentration, so ha"ing = points for speeding because you did 8% mph in a 9>% Aone: is not going to cause the insurer to panic. Insurers will set a reasonable threshold for the number of points they are comfortable with 5say & or >1, and only if you ha"e more points than this, or ha"e recei"ed a particularly large fine or been banned, will they make further en)uiries of you. So, as with your claims history, +ust be honest. It is not worth lying about. *on21otoring Con(ictions If the insurer asks you about other con"ictions 5not motoring related1 then please tell them! If your con"iction is spent, then of course you are under no obligation to disclose it. 6ften ha"ing a con"iction will not be detrimental to your chance of getting co"er 5a con"iction in"ol"ing dishonesty, such as fraud, will probably not go down too well1, but it is ne"er a good idea to lie about this. If you are not sure whether or not your con"iction is 9spent:, then you should be able to find this information on the internet or with a call to a suitable legally )ualified person in your country. /inancial in$or+ation If the insurer asks you about things such as pre"ious bankruptcies or court orders, +ust tell them. Insurers belie"e that if you ha"e financial difficulties then you are more likely 5statistically1 to make a fraudulent claim, or to inflate a genuine claim to try and get a bit more out of it. Again, this does not mean that if you ha"e a court +udgement against you for debt that you will not get insurance, or that you will pay more for it. -he insurer will take your particular circumstances into account. ,ot
all insurers ask for financial information, and if they don't ask then you are not obliged to "olunteer. #ri(ing Other Cars If you ha"e comprehensi"e car insurance, it is likely that you en+oy the additional benefit of being insured to dri"e other cars as well. -his may ha"e different names but we shall refer to it as 9Fri"ing 6ther Ears:, or 9F6E:. -his feature is often misunderstood and it is important that you understand e2actly what this is all about/ • this feature is designed to pro"ide co"er in emergencies, or una"oidable situations. #or e2ample, you are out with a friend, in your friend's car. After parking the car he trips and breaks his ankle. He asks you to dri"e him to hospital. 3our F6E co"ers means that you are legally allowed to dri"e your friend's car 5sub+ect of course to the car being correctly ta2ed etc.1. It is not meant as a blanket co"er enabling you to +ump in any car and dri"e it whene"er and where"er you like. F6E co"er is third<party only 5see 9Ge"el of Eo"er: abo"e1. 3our insurer will co"er the third party losses for which you are liable following an accident, but will not co"er the cost of the damage to your friend's car. -his is an issue he will ha"e to take up with his own insurer. Some insurance policies will only gi"e this benefit to one dri"er 5usually the main dri"er1 on the policy. So, if you and your partner share a car, your policy may only allow one of you to en+oy the F6E benefit. ?ake sure you know which of you is co"ered. F6E co"er is to enable you to dri"e other people's cars 5in circumstances such as described abo"e1, it does not e2tend to other cars that you may own. If you take out comprehensi"e co"er on one car, it does not mean that you automatically ha"e -hird<Iarty co"er on your second car! @ach car that you own needs to be indi"idually insured.
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3he End4 6ne final point which needs to made is this/ after you ha"e insured online, you will recei"e a large amount of paperwork in the post. It is always a good idea to ha"e a read o"er this stuff, as boring as it may be! Howe"er, it is "itally important that you carefully read the 9Statement of #act:. -his document contains the information which you pro"ided and upon which the )uote is based. -his is your opportunity to fi2 any information which you may ha"e pro"ided in error. -he onus remains on you to check this information and correct it where necessary. In conclusion, I would like to wish you the best of luck with your online search for car insurance. It can be a bit of a minefield, but I hope the information I ha"e pro"ided will help you to obtain accurate )uotations that correctly fit your specific needs, and thereby assist you in making an informed choice. ?any thanks to my associates at ?omentum .roker Solutions Gtd for their in"aluable help in compiling this guide. Should you re)uire any further assistance with regards to insurance, whether motor, household or commercial, please contact us "ia e<mail on [email protected], "isit our #acebook page/ 5www.facebook.com;dancasinsurance1 or follow us on -witter 5www.twitter.com;dancasinsurance1. 4e can also be contacted by telephone in the ! on 5%0&>=1 B%0>0C or %8&0% &77C$$. 4e look forward to hearing from you!
Fancas Insurance .rokers.
Fancas Insurance .rokers is a trading name of Jamie Stephenson, who is an authorised representati"e of ?omentum .rokers Solutions Gtd 59?omentum:1. ?omentum are authorised and regulated by the #inancial Ser"ices Authority.
An Essential Guide
Authored by:
www.dancasinsurance.co.uk [email protected]
Version 1.2 – Jun 2 1!
" Jamie Stephenson
Hello! If you are reading this guide, then you are probably considering purchasing car insurance online. I hope that this guide will enable you to do that with a little bit more knowledge, and as a result more confidence, than before. At the time of writing this, I am an independent insurance broker, based in the nited !ingdom. I ha"e worked in "arious capacities in the #inancial Ser"ices industry for o"er $% years, and ha"e specialised in motor, household and commercial insurance for the past & years. I ha"e watched with interest as, o"er the last few years, a rapidly growing trend has de"eloped in the !, and I'm sure worldwide as well, for people to buy their car insurance "ia the internet rather than ha"ing a thorough discussion with an insurance company representati"e or a broker. (easons for this are the con"enience of being able to obtain )uotes at your own pace and when it suits you* and a belief, perhaps not entirely +ustified, that online shopping is cheaper. ltimately, whate"er your moti"es for buying car insurance online, you are missing out on the "aluable, and often irreplaceable, ad"ice of a professional. ,ot e"eryone completely understands what they are buying when they take out car insurance. -here are a number of issues which, if not dealt with properly, can cause claims to be re+ected if the correct information was not pro"ided, either when the policy was first purchased, or later, when circumstances change. -his means that large amounts of money are being spent on policies which, ultimately, will not ser"e their purpose, as the information on which they were based is inaccurate. #or this reason, I ha"e decided to write this short guide to buying car insurance, in the hope that, at the "ery least, customers will ha"e the benefit of this information if they choose not to ha"e a full discussion around their insurance needs with a )ualified person. .efore proceeding, I must state the following $ points clearly/ 01 the information contained in this guide is not intended as a replacement for ha"ing a proper discussion with a broker. I would always recommend that, +ust as you should see a medical specialist when discussing your health, you should always consult an insurance specialist before making a purchase* and $1 as I mentioned in the introduction, I li"e and work in the nited !ingdom. I am therefore familiar with insurance practices within this country. -here are certain principles applicable to insurance which are standard no matter where you are, but there may be slight differences in the way insurers in other countries handle certain matters, and of course legal systems will differ greatly. If you are not a ! resident, this guide will, I'm sure, still be highly rele"ant for you, but please keep the abo"e in mind as certain of my comments may not be totally appropriate in your country of residence. -he manner in which I would like to approach this guide is to highlight certain of the key pieces of information for which you are likely to be asked when you go online and re)uest a )uotation. I will also try and e2plain why this information is necessary and for what purposes the insurance company asks these )uestions. In all cases it is "ital that you/ a1 ensure you pro"ide this information correctly when asked by your insurer* b1 check this information is correct when you recei"e your insurance documents, both after your initial purchase and each time you recei"e renewal or replacement documents* and c1 inform your insurer as soon as possible should any of this information change.
#ate o$ birth It may sound silly but this is a "ery important item of information, as insurance rates "ary depending upon the ages of the dri"ers of the "ehicles. 3ounger dri"ers pay more as statistically they are more likely to ha"e an accident. (ates decrease for dri"ers as they get older, up to a certain point when insurers might start to raise them again. 4hen you recei"e your insurance documents, look carefully at this and inform the insurer immediately if they 5or you1 ha"e made a mistake. 6ne digit being typed incorrectly 5i.e. 07%8 instead of 07&81 could cause a big difference in the premium charged as well as the insurance company's willingness to offer co"er, so if they find out following an accident that you are actually 0% years younger than they thought you were, don't be surprised if an argument ensues o"er payment of your claim. Address 6b"iously you need to ensure your address is pro"ided correctly or you may not get your paperwork. Howe"er, there is an e"en more important reason. Ha"ing obtained your physical address, your insurer will likely ask you to confirm that this is the address at which the car is usually kept at night. As most of us keep our cars at our home addresses, the answer to the )uestion is 9yes: in the "ast ma+ority of cases. Howe"er, if for any reason you keep your car at a different address you must make the insurer aware of this 5the address where the car is kept o"ernight is usually referred to as the 9risk address:1. An e2ample of when this might occur is if you keep the car parked in a family member's dri"eway because your home does not ha"e a suitable space. 6r you are attending college;uni"ersity and the car is parked outside your halls of residence for the ma+ority of the year, whilst your mail goes to your parent's house. Insurers use crime statistics to tell them which areas of the country are high<risk with regard to car crime, and which are safer, using the postcode as the key piece of data. So if you tell the insurer that your car is usually parked in a safe area, and they subse)uently disco"er that it is usually kept in a high<risk area, this could pro"ide grounds for the re+ection of a claim as you will ha"e paid a lower premium than you should ha"e. An important note to bear in mind here is that insurers do not e2pect your car to be parked at the declared risk address for =>& nights of the year. ?ost of us will occasionally spend a night in a different location at some point 5"isiting friends or family, holidays, etc.1 and the car will be our means of getting there. -his is normal usage and is acceptable. .ut this should be the e2ception, not the rule. If you feel that the car is fre)uently parked at an address other than the risk address, it is best to tell the insurer. -he insurer may also ask you how the car is housed at night, for e2ample, 9in the dri"eway:, 9garaged:, 9on the street: and so on. Again, you should be truthful here. If your postcode doesn't fall into a 9high<risk: category then the insurer won't be concerned about your car being parked outside. If, howe"er, you li"e in an area that has been ha"ing trouble with car thie"es, there is a possibility that the insurer might only agree to co"er the car if it is locked in a garage, or behind locked gates, at night. .e "ery careful, howe"er, if you tell the insurer that you keep the car in a locked garage. ?ost insurers lo"e to hear this as it reduces the likelihood of theft 5they may e"en gi"e you a discount1. .ut make sure you ask the insurer what would happen if, one e"ening, you forget to garage the car, it is left outside and is stolen. -he insurer may still pro"ide co"er but could, for e2ample, ask you to pay a higher e2cess. Alternati"ely, they could say that there is no co"er unless the car is garaged, in which case you need to make sure that you do not lea"e it outside! It is always best to ask these sort of )uestions upfront* don't wait until you make a claim to find out that you are not co"ered because you did not comply with the insurance company's re)uirements.
#escri'tion o$ (ehicle ?ost insurance websites will ask you to type in your car's registration number, and the site will automatically search for the make and model. Sometimes this facility may not be a"ailable, and you may be asked to select the make, model, engine capacity etc. from a list of options. @ither way, it remains your responsibility to ensure that the details reflected are correct. #or the purpose of setting premiums, insurers group similar cars together and rate them accordingly. If you put in the wrong details, the insurer may not charge the correct rate. #or e2ample/ two cars of the same make and model, but with different engine siAes, will probably not be listed in the same group, and will therefore attract different rates. If you mistakenly insure your car as a 0.B litre "ersion, when in fact it is a 0.C, then you ha"e paid too low a premium 5and "ice "ersa1. Value 3ou may be asked for the appro2imate book "alue of your "ehicle. Again, try and pro"ide as accurate an estimate as you can. #or "ehicles under D0%%% there will be an assumption that the car is older and, as it might be difficult to obtain spare parts, costlier to repair. )urchase date ,ewly<purchased cars take a little time to get used to 5as all dri"ers know1. -he higher risk of an accident in a car that has recently been ac)uired may lead some insurers to charge a slightly higher premium in such situations. So if the insurer asks when the "ehicle was purchased it is important to pro"ide accurate information. *o Clai+s #iscount 3ou will be asked how much ,o Elaims Fiscount 5,EF1 you ha"e earned. It is a common assumption, and a mistaken one, that if you ha"e not had a claim for 0% years, that you ha"e earned 0% years ,EF. Some insurers will only go up to a ma2imum of & years ,EF. If you say you ha"e 0% years ,EF, then subse)uently make a claim and are asked to pro"ide proof of your ,EF, you will ha"e a problem as you only ha"e proof of & years. So the correct answer to this )uestion is to pro"ide the actual number of years that your current insurer is gi"ing you and which appears on your paperwork, as you can easily pro"e this in need. And remember that the ,EF can only be used on one "ehicle at a time. If you purchase a second car and are still using your ,EF on the original "ehicle, you cannot use the same ,EF on the second car. -his car needs to 9earn: it's own ,EF. -o help dri"ers in this position who also ha"e good claims records, some insurers may offer an introductory ,EF. Gook out for this option as it can make a massi"e difference to the cost. E,cess 3ou may be asked to select a "oluntary e2cess 5i.e. the amount that you are prepared to pay in the e"ent of a claim1. Fon't forget, howe"er, that most insurers will automatically include a compulsory e2cess. 3ou need to carefully check the )uotes you are gi"en to see what the compulsory e2cess is, and add it to your "oluntary e2cess to determine the total you will ha"e to contribute. ?any people ha"e recei"ed nasty surprises following minor accidents when they disco"ered that, instead of paying the D0&% "oluntary e2cess which they selected, they in fact also had to pay a compulsory D$%% as well! -he rationale behind paying a "oluntary e2cess is that it makes your premium cheaper 5because you
are taking a larger share of the risk upon yourself1. Howe"er, in reality, a "oluntary e2cess does not always reduce the premium by as much as you might think. 6nline )uotes usually gi"e you the ability to change the "oluntary e2cess and re<)uote, so do this for a few different amounts and see what it does to the premium before making your final selection. Class o$ -se -he term 9Elass of se: refers to the acti"ities that you will be using the car for, and most insurers use the following terms, or "ariations on these/ Social, Fomestic H Ileasure se 5SFI1* Social, Fomestic H Ileasure se with Eommuting 5SFIHE1* .usiness se 5which is then split into "arious classes depending on details such as whether only the policyholder dri"es, or whether other employees also dri"e, amongst other things1. It is not necessary for purposes of this guide to go into further detail on this matter, discuss in full with your insurance company in need. ?ost people ha"e a basic understanding of these concepts. If you do not work, then you will probably need SFI only* if you are an employee and you dri"e your car to work and back, then you will probably need SFIHE* and if you are self<employed or own a company, and use your car for business<related matters, then you will need one of the classes of .usiness se. Howe"er, there are some important points to be aware of/ • If you are using your car for a purpose for which you ha"e not insured it 5i.e. you dri"e the car to work, but only ha"e SFI co"er, you not only run the risk of ha"ing your claim re+ected if you ha"e an accident whilst commuting, but you could also be committing an offence by dri"ing without the correct insurance* It makes no difference how often you use the car for work. 3ou must ha"e the correct insurance at all times, so the fact that you only do piecemeal work, say once or twice a month, is no defence if you are caught dri"ing to work with SFI co"er only. It also makes no difference if you are paid for the work you do. If you do "olunteer work 5say at a charity shop1 and commute to the shop in your car, you must ha"e SFIHE to be properly co"ered. Eommuting is considered to be tra"elling to and from the SA?@ place of work, so if you work in an office or a shop, in the same location e"ery working day, then SFIHE will usually suffice. Howe"er, you could work for an employer who re)uires you to tra"el to different locations fre)uently 5temporary teaching staff, for e2ample1. In such a case, the fact that you tra"el to different locations may mean that SFIHE is not sufficient, and you might actually need one of the classes of .usiness se. 3ou need to discuss this openly with your insurer to make sure you get the right le"el of co"er in place from the beginning. .ut what happens if you work in the same office for 77.7J of the time, but occasionally your employer sends you on a training course at another "enue, or asks you to help out at another office ; storeK 3ou certainly do not want to be paying the higher rate for .usiness se to cater for one or two days in the year that you might be sent somewhere else. -he answer to this is that it is possible for employers to arrange a contingency policy which co"ers their employees in such cases. 3ou should speak to your employer and establish if such a policy is in place. If not, you need to ensure you speak to your insurer before making such a +ourney. -he circumstances of each case will determine whether your insurer re)uires any additional premium or not, but this should not be the primary issue, as it is certainly better to pay a little e2tra than to ha"e no co"er in the e"ent of an accident.
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Occu'ation 4hat you do for a li"ing is important to an insurer, as it gi"es them an idea of what types of risk the car faces on a daily basis. -his may be a direct risk, for e2ample if you use your car for business 5and ha"e selected .usiness se as your Elass of se L see abo"e1. Someone carrying "aluable samples of goods 5i.e. computer e)uipment or +ewellery1 will present a much higher risk of theft than an accountant "isiting clients. -herefore, it is important that you tell your insurer e2actly what kind of work you do. A common mistake is to omit to inform insurers about $nd occupations. An accountant suddenly takes on a lot more risk if he starts a part<time business deli"ering +ewellery and uses his car for this purpose. -he insurance company needs to know about these acti"ities or there e2ists the risk of claims being re+ected. @"en if you don't use your car for business, it is still important that your insurer has full details of your occupation. Insurers may consider some occupations riskier than others, e"en if you are only commuting to or from your place of work. An e2ample could be someone who works in a pub, and whose car may therefore be parked in the town centre at night. Insurers would probably consider this a higher risk than someone who works 7 L & in an office. .e(el o$ co(er -he le"els of co"er that you can select when insuring your car are fairly standard across most insurance policies. -he a"ailable options are/ • • • Eomprehensi"e -hird<Iarty, #ire and -heft -hird<Iarty only
Sometimes the term 9#ully Eomprehensi"e: is used. -his is +ust a pointless term which has found it's way into our language. -here is no difference between Eomprehensi"e and #ully Eomprehensi"e. -he most basic form of co"er is -hird<Iarty 6nly, so you would e2pect it to be the cheapest but this isn't always the case 5more on this later!1, -hird<Iarty 6nly co"er will co"er the damage suffered by the third<party, either physically to themsel"es 5i.e. due to in+ury1 or to their property 5the damage to their "ehicle or perhaps their garden wall if you were to dri"e into it1. -he other le"els of co"er all build on the one before/ -hird<Iarty, #ire H -heft pro"ides the same co"er as -hird<Iarty 6nly, but also includes co"er for damage to your "ehicle as a result of fire, and will also compensate you for the theft of your "ehicle. ,ote that most, if not all, policies will co"er damage by attempted theft as well, so if the thief is unsuccessful in their attempt to steal your car, but causes damage in the process, you should still be co"ered. .est to check this with the insurer if there is any doubt, though. #inally, Eomprehensi"e co"er starts from where -hird<Iarty, #ire H -heft finishes, and also includes 9Accidental Famage: co"er, meaning that you will also be insured for the damage to your own car, e"en if you are responsible for the accident. Ha"ing stated a few e2amples abo"e of when and where you will be co"ered, it is important to mention at this point that your policy will contain 9e2clusions:, which are situations when, if they occur, you will not be co"ered. It is "ital that you are familiar with these and ensure that you do not
allow them to become rele"ant. -hey are mostly common sense issues such as the fact that your co"er may not be "alid if you dri"e whilst dis)ualified, or if you use your car for racing or speed< testing. -he reason I make this point is to highlight the fact that, +ust because you may ha"e Eomprehensi"e co"er, this does not mean you are co"ered for e"ery possible e"entuality. (ead the e2clusions and speak to your insurer if you ha"e any concerns about them. I raised the point earlier that -hird<Iarty 6nly ; -hird<Iarty #ire H -heft, whilst not pro"iding as much co"er as Eomprehensi"e, may not necessarily be cheaper. Some insurers might think that, if you are not bothered about insuring your car for Accidental Famage, that your attitude towards safe dri"ing might be a little bit too rela2ed. Insurers often prefer to insure cars on a Eomprehensi"e basis 5for cars abo"e a certain "alue you may find that only Eomprehensi"e co"er is a"ailable1, and therefore offer cheaper rates for the higher le"el of co"er. If you are considering insuring on a -hird<Iarty #ire H -heft 5or -hird<Iarty 6nly1 basis to keep your premium down, then I strongly suggest that you get a Eomprehensi"e )uote as well, you might +ust be surprised! 3ou may also find that the insurer throws in a few additional benefits if you choose Eomprehensi"e co"er, such as 9Fri"ing 6ther Ears: 5see below1 or free glass replacement. 3ou might miss out on these benefits if you don't take out Eomprehensi"e insurance for your "ehicle. #ri(ers 3ou ha"e the option of deciding, with your insurers agreement, who you would like to insure to dri"e your "ehicle. -he cheapest option is almost always to insure yourself and only you 5the insurer may use terms like 96ne dri"er only:, 9?ain Fri"er only: or 9Iroposer only:1. If you are the only person who is likely to be dri"ing your car, then this is probably the option for you. If you ha"e a spouse ; partner, or anyone else who you allow to dri"e your car, then you will be able to add this person as an additional dri"er. -he insurer will want to know the same details about this person that they know about you, with regards to con"ictions, claims history etc. If there are a number of people who dri"e your car, you should be able to name them all. 3ou may also ha"e the option of insuring the car on an 9Any Fri"er: basis, which caters for those situations where a large number of people may be re)uired to dri"e a particular car. -his is usually appropriate for businesses who ha"e a company car 5or fleets of cars1 and who may re)uire an employee to run an errand or "isit a client at short notice, so instead of naming each and e"ery employee on the policy, they simply arrange 9Any Fri"er: co"er. -he cost of this will naturally be significantly higher than naming the dri"ers, as the insurer is not being pro"ided with e"eryone's dri"ing histories and con"ictions, so they will set the premium to reflect the additional risk they are taking. -his risk 5and the premium1 can be reduced by restricting the age of the allowed dri"ers, so you may choose to insure your car for 9Any dri"er o"er $&:, for e2ample, so that the insurer knows that there are no dri"ers from within the riskier, under $& age group. Howe"er, it is possible that you may wish to allow a number of people access to your car without it being for business purposes. 3ou may li"e with your parents and ha"e B or & brothers and sisters for e2ample. In such a case, ask the insurer to gi"e you )uotes on a 9,amed Fri"er: basis 5naming each indi"idual dri"er and pro"iding their details, as abo"e1, and 9Any Fri"er: and choose which is better for you. Some insurers will not allow 9Any Fri"er: co"er unless it is for a business, and may therefore insist on ha"ing each and e"ery dri"er named. 4here you ha"e named more than one dri"er, or ha"e selected an 9Any Fri"er: option, you will be asked to name the 9?ain Fri"er:. In most cases, this will of course be you, if you are the owner of
the "ehicle, but this is not necessarily the case. -he ?ain Fri"er is the person who uses the car the most, as the name suggests. Metting this wrong can ha"e serious conse)uences 5see the section on 9#ronting: below1. Ilease remember that all the other dri"ers are sub+ect to the same restrictions that you ha"e placed on yourself 5unless the policy specifically says otherwise1. #or e2ample, if you commute to work in your car, and ha"e therefore selected SFIHE co"er, then your named dri"ers will also ha"e SFIHE co"er, and if one of them uses your car for business purposes they are dri"ing without the correct insurance, they could be charged with a criminal offence and you run the risk of your claim being re+ected if they ha"e an accident whilst on such a trip. If you think one of your dri"ers will ha"e a need to dri"e the car for business then you need to make prior arrangements with your insurer. /ronting -his is a "ery serious issue which can 5and often does1 lead to claims being re+ected and prosecutions for fraud being made. -he simplest definition I can gi"e for fronting is that it is claiming that one person is the main dri"er of a "ehicle, when in fact someone else actually is. -he most common e2ample is a parent claiming to be the main dri"er of a "ehicle, but instead the teenage son or daughter is the real main dri"er. -he moti"e for doing this is simply to sa"e money. -he insurers assessment of the risk is based mostly on the main dri"er 5as they use the car most fre)uently1, with a smaller weighting gi"en to the additional dri"ers. If you are aged B& with an e2cellent record, your premium is going to be significantly less than a 07 year old with only a year's dri"ing e2perience 5if all other details are the same1. So, as the identity of the main dri"er has the biggest influence on premium it is clearly going to be cheaper for 9Fad: to say that he is the main dri"er, and 9Son: an additional dri"er, rather than the other way round. -here is nothing wrong with this, if this is actually the truth! If 9Fad: is genuinely the main dri"er of the car 5i.e. he dri"es to work in it e"ery day1, he can name 9Son: as an additional dri"er so that 9Son: can use the car to "isit his friend in the e"ening, once or twice a week. ,othing wrong with that at all. Howe"er, if 9Son: uses the car daily 5perhaps to go to college1 and 9Fad: rarely uses the car 5he may ha"e another car, or he may prefer the bus1, then this is not a truthful representation of who is genuinely the main dri"er, which means the insurance company is charging far too low a premium for the risk that they are taking. 4hilst the 9young dri"er: scenario described abo"e is the most common e2ample of fronting, it is by no means the only one. If the true main dri"er of a car has a high incidence of claims, or a number of points on his licence, he might try to benefit from a lower premium 5or lower e2cesses1 if he claims to be +ust an occasional dri"er, and names his partner, whose record is clear, as the main dri"er. -his, too, is an attempt to mislead the insurer, and could also lead to criminal charges and re+ection of claims. Clai+s 0 Accidents -his goes without saying but you must declare claims when asked by a potential insurer. If they ask for details of claims within the last = years, and your last claim was B years ago, then you do not need to say anything as the insurer is only interested in the last = years. Howe"er, if they ask for details of claims in the last & years, then you are obliged to disclose this information. Insurers are not looking for you to be 0%%J claim free* they appreciate that accidents happen, cars get stolen etc. .y asking for your claims history they are wanting to make sure that you are not someone who dri"es irresponsibly and therefore has fre)uent accidents, or lea"es your car in )uestionable locations where it is likely to be stolen. If you e2ercise reasonable care and attention to your car,
and to your dri"ing, then you are unlikely to ha"e such a bad claims history that an insurer refuses to co"er you, or drastically inflates your premium. If you do ha"e fre)uent claims, you need to e2amine why this is the case, and do something about it 5consider taking the bus, perhaps!1. .ut under no circumstances should you consider hiding this information from the insurer. Fetails of all claims are now housed in a central database to which all insurers contribute. If you make a claim, it is standard procedure that your details are checked against this database, so if you ha"e failed to disclose a claim there is e"ery likelihood you will be caught out. Just don't do it! 3our insurer may also ask you to declare any accidents or losses that did not result in a claim. Again, if this applies to you, then you must disclose it. 3ou could be a reckless dri"er who is lucky enough to be a panelbeater by trade 5or be good friends with one1, so you are able to sort out most of your accident damage without in"ol"ing the insurance company. 4hilst this means that you may be unlikely to make claims for minor damage 5which could count in your fa"our with the insurer1, they still need to know the truth behind your dri"ing record. 1otoring Con(ictions Eon"ictions for motoring offences 5such as speeding1 should be handled in the same way as your claims history. 4hen the insurer asks 5and they will1, then you must tell them. -hey will usually specify a time period that they are interested in 5the last = or & years1, so if your con"iction date falls within this period, then tell them. #or more serious offences, such as drink<dri"ing or dri"ing without insurance, the time period may well be a lot longer. -he key, as with all these things, is to answer the )uestion honestly. -he date of the con"iction is the important date, not the date of the actual offence. -herefore, if you were caught chatting on your mobile phone whilst dri"ing, and this happened & years and $ months ago, and you were con"icted B years and 0% months ago, then you need to declare this if the insurer asks you for details of con"ictions in the last & years. As with claims, minor and 9one<off: incidents do not usually cause you to be penalised too badly, if at all. Nery good dri"ers occasionally make mistakes or lose concentration, so ha"ing = points for speeding because you did 8% mph in a 9>% Aone: is not going to cause the insurer to panic. Insurers will set a reasonable threshold for the number of points they are comfortable with 5say & or >1, and only if you ha"e more points than this, or ha"e recei"ed a particularly large fine or been banned, will they make further en)uiries of you. So, as with your claims history, +ust be honest. It is not worth lying about. *on21otoring Con(ictions If the insurer asks you about other con"ictions 5not motoring related1 then please tell them! If your con"iction is spent, then of course you are under no obligation to disclose it. 6ften ha"ing a con"iction will not be detrimental to your chance of getting co"er 5a con"iction in"ol"ing dishonesty, such as fraud, will probably not go down too well1, but it is ne"er a good idea to lie about this. If you are not sure whether or not your con"iction is 9spent:, then you should be able to find this information on the internet or with a call to a suitable legally )ualified person in your country. /inancial in$or+ation If the insurer asks you about things such as pre"ious bankruptcies or court orders, +ust tell them. Insurers belie"e that if you ha"e financial difficulties then you are more likely 5statistically1 to make a fraudulent claim, or to inflate a genuine claim to try and get a bit more out of it. Again, this does not mean that if you ha"e a court +udgement against you for debt that you will not get insurance, or that you will pay more for it. -he insurer will take your particular circumstances into account. ,ot
all insurers ask for financial information, and if they don't ask then you are not obliged to "olunteer. #ri(ing Other Cars If you ha"e comprehensi"e car insurance, it is likely that you en+oy the additional benefit of being insured to dri"e other cars as well. -his may ha"e different names but we shall refer to it as 9Fri"ing 6ther Ears:, or 9F6E:. -his feature is often misunderstood and it is important that you understand e2actly what this is all about/ • this feature is designed to pro"ide co"er in emergencies, or una"oidable situations. #or e2ample, you are out with a friend, in your friend's car. After parking the car he trips and breaks his ankle. He asks you to dri"e him to hospital. 3our F6E co"ers means that you are legally allowed to dri"e your friend's car 5sub+ect of course to the car being correctly ta2ed etc.1. It is not meant as a blanket co"er enabling you to +ump in any car and dri"e it whene"er and where"er you like. F6E co"er is third<party only 5see 9Ge"el of Eo"er: abo"e1. 3our insurer will co"er the third party losses for which you are liable following an accident, but will not co"er the cost of the damage to your friend's car. -his is an issue he will ha"e to take up with his own insurer. Some insurance policies will only gi"e this benefit to one dri"er 5usually the main dri"er1 on the policy. So, if you and your partner share a car, your policy may only allow one of you to en+oy the F6E benefit. ?ake sure you know which of you is co"ered. F6E co"er is to enable you to dri"e other people's cars 5in circumstances such as described abo"e1, it does not e2tend to other cars that you may own. If you take out comprehensi"e co"er on one car, it does not mean that you automatically ha"e -hird<Iarty co"er on your second car! @ach car that you own needs to be indi"idually insured.
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3he End4 6ne final point which needs to made is this/ after you ha"e insured online, you will recei"e a large amount of paperwork in the post. It is always a good idea to ha"e a read o"er this stuff, as boring as it may be! Howe"er, it is "itally important that you carefully read the 9Statement of #act:. -his document contains the information which you pro"ided and upon which the )uote is based. -his is your opportunity to fi2 any information which you may ha"e pro"ided in error. -he onus remains on you to check this information and correct it where necessary. In conclusion, I would like to wish you the best of luck with your online search for car insurance. It can be a bit of a minefield, but I hope the information I ha"e pro"ided will help you to obtain accurate )uotations that correctly fit your specific needs, and thereby assist you in making an informed choice. ?any thanks to my associates at ?omentum .roker Solutions Gtd for their in"aluable help in compiling this guide. Should you re)uire any further assistance with regards to insurance, whether motor, household or commercial, please contact us "ia e<mail on [email protected], "isit our #acebook page/ 5www.facebook.com;dancasinsurance1 or follow us on -witter 5www.twitter.com;dancasinsurance1. 4e can also be contacted by telephone in the ! on 5%0&>=1 B%0>0C or %8&0% &77C$$. 4e look forward to hearing from you!
Fancas Insurance .rokers.
Fancas Insurance .rokers is a trading name of Jamie Stephenson, who is an authorised representati"e of ?omentum .rokers Solutions Gtd 59?omentum:1. ?omentum are authorised and regulated by the #inancial Ser"ices Authority.
