Car insurance is a fact of life if you own a car, but insurance can be a complicated business and there are many factors that you need to take into account when you (a) take out cover, to keep the cost down and (b) when you want to make a claim on car insurance. Here are some things that you may not have realized about this product:
When you take out car insurance, although each case is assessed on its facts, did you know that there are certain factors that can increase your premium!
For example, if you are looking to buy a new car, be aware that certain models will attract a higher premium than others – for example, vehicles with either a soft top or a powerful engine are seen as riskier purchases by insurers (powerful cars can go faster and soft tops can be broken into more easily). Similarly, modified cars are likely to attract a higher insurance premium. If you park your car on the road or if you live within certain locations, your insurance may also be increased.
Bizarrely, loyalty to your car insurer will not necessarily mean a cheaper insurance product. It is always worth shopping around when your car insurance expires as many insurers entice you to take out a policy with them by reducing prices.
Who you are also affects your premium. Age has been a factor in the past – if you are under 25 or over 65 years of age, the insurers may want a higher premium. New legislation may change this. Some insurers specialize in insurance for older people, so it’s worth checking them out. However, did you realize that your profession may also affect your rating?
Your skill as a driver will also be taken into account, when the insurers quote for your premium. If you have a good record and a no claims bonus, these factors would help keep your premium down. If you have claimed for an accident, you may forfeit the no claims bonus and see insurers increasing future premiums.
If you do find yourself in a car accident, however, you may either have to claim under your insurance policy or (if the other party was at fault) their policy. To get a rough idea of the sums you might expect in making a claim for compensation for personal injury, you can use an online compensation calculator. Please note that the compensation calculator is not a guarantee of the sums you would receive, but as like cases are often judged in a like manner, the compensation calculator may give an idea of payments.
It is also worth considering whether you would qualify for a no win no fee solicitor in the event of a claim. If for example you want to bring a whiplash claim (a whiplash claim is a very common personal injury from a car accident) even if you lost that whiplash claim in court, you would not have to pay for your legal costs if you had a no win no fee solicitor.
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