Car insurance protects you against financial loss for damages resulting from car accidents, theft, weather events and other unforeseen costs according to your policy type. A car insurance policy helps pay for the cost of damage to cars, property, and even people.
It can cover you if you cause personal injury in an accident or if you damage property or another vehicle. If you opt for a higher level of coverage, you may also be covered for the repair or replacement costs of your vehicle as a result of collisions, fire, theft, and weather events. Most policies will vary in coverage (and price), which is why it’s important to review your options carefully.
The cost of insurance depends on the type of cover you hold (i.e. Third Party Property, Third Party Fire & Theft or Comprehensive), and how risky you are to insure, meaning premiums can vary.
When using our online comparison, we ask you to enter certain details to help you find products that may suit your needs and budget. Each of these questions can impact your premiums in some way, including:
‘Extras’ are inclusions or perks bundled into car insurance policies that are competing for your business. Otherwise known as ‘benefits’, some common extras you may find incorporated into your policy are:
Depending on your insurer, there are various extras available when taking out car cover. Like all insurance products, it’s important to understand the fine print when choosing extras, so that you fully understand what you’re covered for, and how adding extras may affect the cost of your premium.
You can potentially save on premiums by:
Always disclose as much information to your insurer as possible; if you decide to hide your claims history, for example, your cover could be cancelled or future claims could be denied.
Excess refers to the amount you’ll pay if you ever claim on your policy. This amount is agreed upon when you first take out cover. When you make a claim, you will pay this amount, and your insurer will pay the rest of your repair/replacement costs up to the agreed amount on your policy.
There are different types of car excess:
If you are not at-fault in an accident, you are generally not required to pay excess. The exception to this rule is when the at-fault party is not identified. This means if you’re involved in a hit-and-run, and the guilty party is not found or identified, you may be required to foot the cost of the excess.
For more information, visit excess explained.
Liability refers to the person who is legally responsible, or at-fault, in an accident. For example, you may be liable for third-party damage if you didn’t give way and collided with a vehicle that was already on a roundabout.
Compulsory Third Party (CTP or Green Slip cover) is the only form of car insurance that covers your legal liability if you’re at-fault in an accident where another person is injured or dies.
If you’re over 50, you may be entitled to discount car insurance rates. Let Compare the Market help you compare quotes online.
Many of us don’t understand how car insurance premiums are calculated. We explain, and then look at the factors that could help reduce your bills
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Just because you’re young, it doesn’t mean you have to pay through the nose for car insurance. See if you can save on your insurance at Compare the Market today.