Gap Insurance at MotoWorld

Car insurance protects you and your family financially if you ever have a motor accident, be it your fault or not. In the UK, car insurance is a compulsory as well as a necessary expense. You need a good car insurance policy for the financial protection it will afford you in the event of an automobile accident.

Repairs to your own car after an accident, legal fees and liability for property will often not be covered by a bog-standard car insurance policy. Bolt-on niche insurance products such as inconvenience cover, gap insurance and even legal protection insurance can prove to be invaluable additions to your comprehensive car insurance to ensure an accident does not end up costing you more than you can afford should the worst happen, also making sure you have a car warranty to protect you too.

Choosing the right car insurance will protect not only you, but your vehicle, and third parties in the long run. You must prove that you have bought car insurance if you plan to drive in the UK. There are different levels of cover which are determined by the type of car insurance policy you choose to take out.

WHY YOU SHOULD SHOP AROUND FOR NEW CAR INSURANCE

Shopping around for car insurance is very important for several reasons:

• You may find better quotes
• Depreciation will affect the value of your car
• Your personal circumstances may be different
• Your car finance may put your car at risk
• You could find a policy which includes cover for loss of personal items
• You may find a policy which includes breakdown cover
• You may find inclusive legal cover offered by some insurers
• You could find a policy which includes cover for a second car
• You may be offered an introductory discount

Just because you have used the same insurance company or insurance broker for several years, does not mean you are getting the best deal. It really only means just that - you have used the same insurance company or insurance broker for the past several years.

An insurance broker already familiar with your demands and needs from your insurance history will probably be in a position to get you the best deal. This is also the case with car insurance as they can often consolidate your insurance needs into an all inclusive package which most insurance companies only make available to brokers.

Car depreciation is a direct result of a vehicle’s age and usage. No sooner than you have driven your new car off the showroom floor the car begins to depreciate. The value of your car will decrease every year. Make sure that your insurance policy reflects this reduction in value. This is logical but often people can overlook the obvious. Check the value of your car against its blue book value rather than the price you paid - your broker can do this for you. The reason is that even fully comprehensive car insurance policies do not cover a vehicle to the purchase price, but rather the blue book value. Ensure you declare the vehicle's value accurately. If you have bought an expensive car, then the chances are that it will cost you more to insure. It's possible that your insurance company may offer you a like-for-like replacement after an accident - but this is uncommon. There is however an insurance product called Vehicle Replacement Insurance which does just that! To find out more about how Vehicle Replacement Insurance works click on the link.

Your circumstances may have changed since you last renewed your car insurance. You may have switched jobs and not drive as many miles per year or have paved the front lawn and turned it into off-street parking. Change your insurance details to reflect these changes in circumstance. Insurance companies lower their prices for low mileage drivers and discounts can be significantAdding additional drivers is not as expensive as you would think; a great tip here is to wait until renewal time if possible. Adding additional drivers mid-year often incurs administration fees which could be avoided if done at inception or renewal time.

SO WHICH IS THE BEST CHOICE OF CAR INSURANCE COVER?

There are three types of vehicle insurance in the UK.

1. In many countries including the UK, Third Party Insurance is mandatory. If you are involved in an accident, this type of cover will protect you financially against damage to the other vehicle or its occupants. Third Party Insurance acts as security against liabilities for damage to another person in a vehicle accident. Third party insurance will not cover any damage inflicted on your own car or to your person. There is no reimbursement of repair costs with this type of insurance.
2. Third Party, Fire and Theft Insurance will cover the benefits of third party insurance and includes any financial loss to the insured vehicle caused by fire or theft. The average driver may find this the best type of cover, especially for a vehicle which doesn't have a very high market value. If you are leasing a vehicle or have acquired it via a finance company, then you will need to provide fully comprehensive insurance for the vehicle.
3. Fully Comprehensive Insurance offers the widest coverage. It provides the basic insurance of third party, fire and theft and covers damage to the insured vehicle and any bodily injury suffered by the policyholder in an auto accident. If the vehicle value is higher than the insured can afford to pay to replace it, then fully comprehensive is the preferred choice. Finance Gap or Vehicle Replacement Gap Insurance are additional insurance products available to top up the gap between your payout and the cost of paying off a new car, so go online and find out more about these insurance products.

Many factors affect car insurance and most insurance companies offer a range of secondary covers to meet the varied and specialized needs of the policyholder.

FACTORS AFFECTING CAR INSURANCE

1. The Policyholder

• Age of the policyholder
• Gender of the policyholder
• Are you married or single
• Inner city, suburban or rural residential locations
• How big the car is
• Vehicle replacement cost
• Any modifications that have been made to the vehicle by its owner

A younger less experienced driver will pay a higher insurance premium than someone with several years driving experience.

A married person is considered more responsible for their actions than a person is with no commitments. It stands to reason that married men with kids have more responsibilities than single men and the insurance companies therefore consider married men a lower risk category.

Where a person lives also affects the insurance cost. Rural areas that have less traffic and areas with a lower crime rate will mostly likely get a better premium than towns or high crime areas.

A powerful car is more likely to lose control at the hands of younger drivers.

expensive cars cost a lot to replace if scrapped and should they simply require repairs the sum of the replacement parts often costs more than the used car’s value, making more powerful cars very expensive to ensure.

Modifications are more likely to alter the vehicles safety; performance is improved, and handling may be compromised making the vehicle more unpredictable. Car modifications therefore equate to increased risk for insurance companies, and will result in increased premiums.

2. Driver History

• Years of driving experience
• Historical claims
• Driving convictions
• Annual mileage

The number of years a person has been driving suggests their understanding of the rules of the road, shows the driver has built up experience of driving under varied driving conditions and has attained a certain level of confidence while behind the wheel. This is confirmed or denied by the number of insurance claims made during the previous five years. Driving convictions such as speeding, dangerous driving or drink diving will affect the premium. Parking violations are not included.

Annual mileage is a factor too. Your chances of being involved in an accident are increased the more time your car spends on the road.

3. Vehicle History

• Current vehicle value
• Whether you own the car or if it is leased or financed
• Make and model of the vehicle
• Engine size and performance
• Modifications to the vehicle

If the vehicle has a low book value, it may not seem to be cost effective to pay for comprehensive insurance; however this is not necessarily the case. Often as the named driver with many years of no claims under the belt, fully comprehensive motor insurance could cost no more than third party insurance, but with additional perks. Many online insurance buyers find that for just a small premium increase, many additional benefits can be included. Leased or financed vehicles require comprehensive insurance. You need to be able to reimburse the leasing or finance company for any damage to the car. Comprehensive insurance will cover this. How long did the car warranty run for too? Do you need to purchase an extended car warranty?

There may be other benefits included in your car insurance policy, which are not always necessary but sometimes advisable:

• Breakdown insurance
• Courtesy car included
• Roadside or breakdown cover
• Help with legal fees and advice
• Cover for your windscreen
• Protecting your no claims bonus
• Compulsory or voluntary deductible amount

Choosing the correct car insurance and getting the best quote can be daunting as there are so many variables to consider. Minimise your aggravation by only visiting user-friendly insurance sites. It is a good idea to consider using an insurance aggregator website to get started. The average insurance buyer finds aggregator websites easy to use. You'll only need to fill out one questionnaire so that the market can be searched on your behalf. After the site has collected the quotes, you can then compare different policies, as well as being able to save your quote, amend your requirements if necessary and if you are happy you can then buy online. Before you buy online, call your broker to see if you can get a better deal based on your findings. The most important factor about buying online is that you compare like for like quotes. It is not always a quick and easy task. Good luck.