Every motorist in The United Kingdom knows: Before driving your own vehicle in the may be moved in public space, motor vehicle insurance must be taken out. There is a great desire for strong benefits and low contributions. But how do the contributions come about and which insurance cover really suits your own vehicle? Our little guide gives you the most important information you need to take out the right insurance for your car.
Contents
Why take out car insurance at all?
Unfortunately, accidents involving motor vehicles are part of everyday traffic. The costs of major damage can quickly reach many thousands of euros. Since there is a legal obligation to pay compensation, an accident would quickly mean the financial ruin of a driver. Car insurance protects against this and covers a large number of damages up to a maximum sum insured.
Motor vehicle liability insurance that covers damage to third parties is mandatory. Without such protection, a motor vehicle may not be driven on public roads. The registration authorities therefore always have proof of liability insurance presented when registering and re-registering.
Types of car insurance in profile
No vehicle owner can avoid liability protection. This type of insurance covers personal injury, property damage and financial loss that you cause to other people. The legislator prescribes minimum amounts for personal injury (7.5 million euros) and property damage (1.2 million euros), most insurance tariffs go beyond these standard values for the benefit of their customers.
In addition to motor vehicle liability insurance, comprehensive tariffs can be taken out. These are not legally obligatory and are an additional insurance protection on a voluntary basis. The vehicle owner himself benefits from partial or fully comprehensive insurance. After all, your own vehicle can suffer as a result of an accident or other type of damage and make expensive repairs necessary.
The partially comprehensive insurance usually covers elementary damage such as storm, fire or lightning, as well as burglary in the vehicle or car theft. The fully comprehensive insurance includes all these services, in addition, damage costs in the event of accidents and vandalism for which you are responsible are covered.
What protection do I need for my vehicle?
With motor vehicle liability insurance alone, you pay a significantly lower annual premium to your insurer. However, no self-inflicted damage to the vehicle is covered. Before taking out insurance, it is therefore important to consider how worthwhile it is to insure your own vehicle in the event of an emergency. Important factors are:
– Is your vehicle new or high quality? Then comprehensive insurance makes sense, since early damage contributes to a comparatively high loss in value.
– Is your vehicle always secured in a garage or on private property? Then elementary risks or theft are less likely?
– Are you dependent on your vehicle professionally or privately without compromise? Then this should be available again quickly with strong comprehensive insurance benefits.
Of course, taking out the ideal car insurance is also a question of costs. If you are dependent on saving, you will decide on your own to take out motor vehicle liability insurance. By comparing tariffs, which can be done easily and free of charge on the Internet, the insurance premium can be optimized in line with your desired benefits.
How is car insurance calculated?
When you compare car insurance, you quickly see how different the premium amounts of the individual insurers are. This is due to the many calculation factors that each insurance company determines for itself and incorporates into your contribution. The premiums change annually, which the insurer will usually inform you of in November for the coming year.
The change in the contributions for all insurers is due to the recalculation of the type and regional classes, which takes place every summer. All insurance companies respond to the current damage developments with both:
– Type classes: Some model series are more often involved in damage than others or, due to their high vehicle value, also have higher damage costs. The type classes, which are newly determined every year, include this individual risk in your contribution.
– Regional classes: There are regional differences in cases of damage, for example the probability is higher in large cities than in rural regions. Every insurance company also includes this depending on the policyholder's place of residence.
In addition to these two factors, all car insurance companies have fun, which you take into account in your tariffs for the final calculation of contributions. Typical aspects and types of discounts are:
– Age or driving experience of policyholder
– Group of users of the insured vehicle
– annual mileage in kilometers
– private or commercial use
The influence of such regulations on insurance risk is obvious. A new driver's license holder is more likely to cause damage than an “old hand” because of his inexperience at the wheel. A car that is rarely used is less likely to be involved in an accident than a vehicle that drives many kilometers every day. Since each insurance company ultimately keeps its own statistics on claims and costs, there is a diverse insurance landscape with different contributions for the same insurance benefit.
Can I influence the costs of the insurance?
As an insured person, you can influence the amount and development of contributions yourself. On the one hand through the principle of no-claims classes, or SF classes for short. This is used to offset the annual premium set by the insurer with a percentage value. The more years you are on the road without damage, the greater the percentage reduction in the premium.
Conversely, this means: In the event of damage, your SF class will be downgraded and it will take a few years to reach the class you reached again. It can therefore be worthwhile paying the damage costs out of your own pocket and leaving the SF class achieved untouched, especially in the case of small partially comprehensive claims.
The second influencing factor also aims in this direction: the deductible. This is common in partial and fully comprehensive insurance, and with a few insurers also in motor vehicle liability. With the deductible, you set an amount in euros that you initially pay yourself in the event of a claim. If the total damage exceeds this, the insurance company pays the difference. The deductible allows you to make the ongoing premium payments significantly cheaper.
When can I change the car insurance?
Because the car insurance companies in The United Kingdom adjust their tariffs every year and set themselves apart from the competition with new discounts change insurance is often worthwhile. Therefore, check at the end of the year which tariffs are currently being offered and whether switching to another car insurer is worthwhile.
The deadline for terminating your existing car insurance is always November 30th. Submit your cancellation in writing by then so that you can benefit from another car insurance at the beginning of the new year.
It may still be possible to cancel after November 30th. If you received the premium overview for the coming year during November and the insurance costs have increased, this triggers a four-week special right of termination. So you might be able to cancel and switch just before the end of the year.