Automobile Insurance: What you need to know

The importance of having car insurance

Owning an automobile comes with a lot of responsibility and there is definitely much care involved. One of the main things you have to consider about owning an automobile of any sort is the insurance cover.

Insurance is now pretty much obligatory if you want to own an automobile and with good reason. The aim of having an insurance cover is to protect both you and your vehicle in the best way possible in the event of any unforeseen circumstances.

Here we’ll delve into a few aspects about automobile insurance that can help you understand what it is and how to opt for the best possible solution for yourself.

What is car insurance?

Car insurance is a policy that covers you, your automobile(s) and any other named drivers stipulated in your policy. At the bare minimum of any such policy, it covers or insures you against costs associated with events like damage to your vehicle, the death or incurrence of injuries to both yourself or to others in the occurrence of an accident that is deemed to have stemmed from your faults.

From the above short explanation, you can tell how important it must be to have such a policy in place, in fact so important that as earlier stated it is one of the mandatory legal requirements of owning an automobile.

Types of car insurance available

Here in the UK, we primarily have about 3 main classes of insurance and they are as follows:

Third Party

Third Party, Fire and Theft

Comprehensive car Insurance

This type of cover is essentially the most basic and cheapest available. It covers only paying out for damage that you have caused to others. This means that this insurance policy will not cover the costs associated with your vehicle if it has been in an accident and it is your fault. In addition, this policy does not cover any costs related to the vehicle being lost or stolen. This policy covers everything associated with the above policy as well as being able to pay for the repair or replacement of your car should it be associated with damages from a fire or theft or vandalism. This is presently the priciest policy of the lot but conversely covers everything included in the above two policies and a wider range of events that could happen to you or your automobile.

Factors affecting car insurance premiums

Determining the premiums you have to pay for your vehicle takes into consideration a fair number of factors. Some of them are listed below:

I.    The type of car you own; according to things like its engine size, emission rates and the likes.

II.    Age and Gender; this consideration factor arose from statistics gathered from a number of accidents and as such, depending on your age group and gender premiums may be higher or lower.

III.    Age of the automobile.

IV.    Probability of Theft; it is no secret that some make of vehicles are more preferred in the market forstolen goods and as such, depending on the make and model of your car, the premiums may be slightly lowered or raised.

V. Driving History; this is an important factor you have to look out for. Generally speaking, if you have a bad driving record, some insurance companies may decide not to cover you at all and should they opt to go ahead and cover you, be prepared to pay hefty premiums for your cover.

Saving on insurance costs

While on the topic of costs, there are a number of ways on how to make a saving on policies. Let’s briefly look at a few:

1. You can decide to take advantage of multi policy discounts. This essentially means that if you get insurance cover for your other needs from the same company, you can be afforded a good discount on automobile coverage.

2. The government is offering incentives in a number of ways including reduced insurance premiums if you switch your car to clean energy systems. professional LPG conversion is a growing industry in the UK so you can’t miss a company offering this particular service.

Selecting an insurance cover

From the above bits of information, we can boil down the points for consideration when selecting an insurance cover to the following:

I.    Opt for a policy that covers the most according to what you prioritize as important in an insurance cover.

II.    The policy’s premiums and payouts should be according to what you deem adequate or necessary.

III.    Look out for the reputation of the insurance company you want to work with

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