Car coverage covers you and other drivers while your vehicle is being driven. Car insurance can help you pay for third party costs in the event that you cause damage, injury, or death.
Some policies will pay for repairs or reimbursement of stolen or written-off cars.
Depending upon your policy, you might be covered while driving another person’s car.
What happens to my car if I don’t own insurance?
The rising cost of fuel, and the high cost of living make car insurance a significant expense. In certain countries, like the UK where car insurance is mandatory for all drivers, it can be legal.
Let’s imagine you’re driving happily along your route, your car uninsured. And then you get in an accident. If the other driver was not at fault, and you aren’t covered by their insurance, you may be able to collect money from them. For uninsured drivers, you could sue for damages.
If you were at fault for the accident, all the passengers in the vehicle you struck can seek compensation or take your assets. This can include your savings, a part of your paycheck, and possibly even more depending on the extent of damage. Insurance premiums for your future insurance will be higher for you than for someone similar to you.
It’s possible that cancelling your insurance, or even not taking out any, is still a way to save some money.
What type of insurance do I need for my car?
How do you determine the cost of your car insurance?
To find the best deal, compare policies from several insurance companies. While it can take some time to do so, the upside is that you will be able to save significant money.
You will pay more for car insurance if you have a specific make and type of vehicle, the location you live in, the security of the parking spaces you use (home and work), and your demographics. Also, you can influence the premium calculation by determining how your claims history and your claims history. Check out this link to see if speeding tickets could increase your car-insurance premium.
What is excess?
An excess is by definition the initial amount that you will be liable for in an insurance claim being settled. It is normally paid to the repairing agency responsible for your automobile after an collision. The excess is paid to them after the damage is repaired and before the vehicle can be driven away.
This amount is paid to you regardless of who caused the damage. This process is in place to prevent customers submitting fraudulent or minor claims.
Advice: Paying a higher excess will reduce your premium when you compare car insurances. A small claim is not worth the risk. To get a no-claim discount/ bonus, you should pay for repairs yourself.