Short Term Car Insurance - What You Should Know

When you are looking to take a short term insurance cover on your car you need to know what law enforcers expect from you. The car insurance section of the insurance industry has governing laws, just like any other arm of this huge industry. There are laws set to ensure the interests of the consumer are protected. The laws protect customers from unpaid claims and probable exploitation by insurers. While the laws may vary from city to city in the USA, there are standard ones that govern the whole UK insurance industry sector.

Minimum Requirements for Car Insurance

As you interact with insurance companies, you are bound to come across the term “minimum”. For you to drive a car in the UK, you must be insured or have deposited £500,000 with the Accountant General of the Supreme Court.

In case of damage to a third party property, the Law states that an amount not exceeding £1,000,000 will have to be paid. The minimum amounts to be paid in case of damages or injuries caused to other third parties can be set by the courts in case a lawsuit is filed. The amount usually covers the cost of the damage plus its associated costs.

Uninsured and Underinsured Motorist Coverage

The law also protects those hurt by uninsured or underinsured drivers. For any car insurance cover to be valid in UK, the vehicle owner must purchase the uninsured and underinsured policy to cover at least the amount for bodily injury liability cover.

Optional Cover


There are optional covers that are offered by insurance companies apart from the mandatory liability policy. Some plans that can be in the optional cover include roadside assistance, windscreen cover, legal cover, medical expenses, hotel expenses, personal accident cover, loss of keys, audio equipment cover, new car replacement, own damage, fire and theft claims, legal liability, among others.

Optional covers are usually set up to a fixed amount by the insurance company. They can also amount to a percentage of the total amount of insurance you have purchased.

What Type of Car Insurance Should You Take?

You can either take comprehensive car insurance or third party, fire and theft insurance. The former will cover you for many options while the latter is only meant to cover third parties. If you are looking for an affordable short term car insurance, then third party, fire and theft should be your choice.

Regardless of the type of insurance you go for, you should look for hidden charges that may be levied on you. Most insurance companies will not tell you upfront all the fees that you will have to pay. Instead, you will come to notice the fees when you have started paying the premiums. The hidden fees can be numerous and will ultimately increase your costs.

How Can You Reduce Your Premiums?

There are a number of ways through which you can reduce the cost of your insurance. You can also take advantage of discounts offered by the insurer. However, most companies will not tell you that they offer discounts. It is only after you ask their agents will you then know of the discounts you may qualify for. These can include good driver’s discounts, discounts for maintaining good grades in school, discounts for senior drivers among others.

It is advisable to work with professional advocates when you want to file a claim. To be properly compensated for the medical bills, car repair bills and piles of paperwork, get a good lawyer to help you.


 

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