Being an owner of a vehicle you are obliged to take out car insurance. The following questions are frequently asked to car insurance companies and the answers may prove useful in your search towards the best insurance company for you.
Can I insure a modified or classic car; who will offer insurance cover?
Yes, you can insure a modified car, but because your car is a specialist car, not all auto insurance companies might be willing to provide coverage for it since it requires high price replacement parts and also skilled labour if the car is involved in an accident. Thus, you have to take a special car insurance that is designed especially for modified and classic cars.
How can I cut down on my car insurance premium?
If you wish to cut down on your car insurance premium you must take care of a few things. Park your car overnight in the garage rather than leaving it unattended in the street. Fit insurance approved anti-theft devices; consider Third Party Fire and Theft for older cars. Find out discounts offered by the insurance provider when requesting quotes. Young drivers (under 25), who are often charged extremely high premiums, should have an extra driving course certificate.
What is ‘excess’?
Excess is the amount you have to pay when you make a claim for the loss or damage to your vehicle. It can be voluntary or compulsory. If someone else causes the accident you may be able to reclaim the excess through the legal cover, which can be taken out with your car insurance policy. Otherwise you lose the excess. Voluntary excess is the amount you agree to pay to the company. It offers premium discounts. Compulsory excess is generally imposed to young drivers. Because their risk factors are high and the companies don’t want to insure them. So, in order to insure, they have to surrender with this payment.
What is legal cover?
Legal cover provides expertise and assistance required to recover uninsured losses such as medical costs, loss of earnings and excess payments where the fault was not yours. It is available as an optional with most car insurance policies.
Can an insurance company cancel my auto policy?
Yes, your auto insurance policy may stand cancelled when you fail to pay the premium or if your consumer’s license has been suspended or revoked during the term of an auto policy. Also, if there is a fraud or serious misrepresentation when completing the insurance application, if the you are convicted to a crime, or if changes are made to the property that increase the risk of loss then the company may cancel your insurance policy.
With the above in mind, you are able to keep your insurance premiums low enough to suit your budget.