Have I got the right insurance?

We pay a lot of money for our car insurance, so it’s important to know that the deal we get is right for us.
It’s important to know exactly what your policy covers – and just as important to know what ‘s not covered.
The only way you can be sure is not to take things for granted and ask the insurer some straightforward questions:

1. What strings are attached for younger or inexperienced drivers?

Generally, expect to pay a bigger premium if you fall in to this category, as the insurer will class you as a higher risk. You might also find you will probably have to pay a higher excess in the event of a claim.

An ‘excess’ is a personal cash contribution you pay towards the cost of a claim. You can have a compulsory excess imposed by the insurance company, and/or a voluntary excess you can elect to pay to reduce your premium.

2. Does the policy have a limit for legal and medical expenses?

If your policy includes legal and medical cover, you need to check the cover is adequate for your needs. Terms and conditions will vary between insurers.

3. Will I have a courtesy car if mine needs repairing?

Many insurers offer courtesy or replacement cars while your vehicle is under repair.
Generally, a courtesy car can be any type of vehicle while a replacement car is one of a similar model and standard to your own.

Ask your insurer if they offer this benefit and what sort of car you will be offered if you need one.
If you don’t have this benefit and don’t have access to another car, then the cost of hiring a car while yours is in the workshop could be expensive if extensive repairs are required.

4. Am I covered to drive overseas?

Some insurers include the legal minimum cover for some countries and exclude others.
If you want comprehensive cover, you may have to pay extra – if it’s only for a week or two, speak to your insurance company about increasing the cover just for the time you are away.

5. Does the policy give the car’s market value or book value if written off?

Go for market value if you have the option – market value considers mileage, the car’s condition and colour, where book value is the price a trader would pay.

6. What will I get back for property stolen from my car?

Some insurance companies have a small amount of compensation – generally £250 - £500 – for property stolen from your car. If you add up the cost of any electronic equipment, sunglasses, jackets or CDs, this can soon go over the limit.

7. Does my insurance cover me to drive other cars?

Most comprehensive car insurance policies will cover the policyholder to drive other cars – but only for third-party, fire and theft risks. This means if you are driving someone else’s car and have an accident that is deemed your fault, the third party is covered but the car you are driving isn’t.