Car insurance helps protect you against financial loss in the event of an accident. It covers you, your car, and any other thing or person involved in the accident. Depending on the type of coverage that you have, it can help pay for the cost of repairs, medical bills, and other expenses related to an accident. It can also provide protection against theft, fire, and other damage.
Why Do You Need Car Insurance?
You’re legally obligated to have car insurance. If you cause an accident and people are injured, or property is damaged, you could be sued for a very large amount of money. If you can’t afford to pay, your assets could be seized to cover the cost, or you can be imprisoned.
Car insurance can help compensate victims of the accident and cover the costs of repairs if your car is damaged in the accident. If your car is stolen, it can help you recover or replace it. And if you have comprehensive coverage, it can help pay to repair damage caused by events other than a car accident, such as a fire or vandalism.
Types of car insurance
There are different types of car insurance, and each type offers different levels of protection. Here are three levels of car insurance cover:
Fully comprehensive: This offers the highest level of protection. Besides covering you for damage to your car, it also covers you for damages caused by theft or fire and for damages to other people’s property.
Third-party fire and theft: This offers the same level of protection as the third party but also covers you for damage caused by fire or theft.
Third-party: This is the minimum level of cover required by law. It only covers you for damage caused to other people’s property.
Car insurance add-ons: There are also several optional extras that you can add to your car insurance policy, such as:
Personal injury cover: This can help pay for your medical expenses if you’re injured in an accident.
Breakdown cover: This can help pay for repairs if your car breaks down.
Excess protection: This can help cover the cost of your excess if you have to make a claim.
Check with your service provider to see what types of cover they offer and compare different policies to find the best one for you.
No-Claims Bonus – What It Is And How It Works
No-claims bonuses can be a great way to reduce the cost of your car insurance, but it’s important to remember to claim them.
If you don’t make a claim on your car insurance policy, you may be entitled to a no-claims bonus. This discount can be applied to your premium at renewal. The size of the discount depends on how long you’ve been insured for and how many years you’ve been claim-free. The discount usually ranges from 30% after a year and up to 65% after five years.
To get the discount, you’ll need to provide proof of your no-claims bonus when you renew your policy. This is usually in the form of a renewal notice or certificate from your previous year. You’re normally allowed to make a max of one claim in a year, or two in three years, without losing your no-claims bonus.
However, if you’ve had more than one accident claim in a year, you may not be entitled to a no-claims bonus. In this case, you can protect the no-claims bonus by purchasing an add-on that’s called ‘no-claims discount protection.