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.
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.
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.
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
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
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.
Copyright Harold Clarke
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