5 Things you didn’t know about auto-insurance

Auto-Insurance is one of life’s necessary evils. We all know we need it by law, but not many of us really pay attention to what it involves, what we’re entitled to, or what to do in the unfortunate event of a claim.

If you are confused by auto-insurance, let’s take you right back to basics and begin by explaining the different types of car insurance available.

Third Party

This is the minimum level of insurance possible. You are required to pay this as a minimum along with your vehicle registration.  It covers the cost of injury to other people by you – such as medical expenses.  It does not cover the cost of any damage to the other person’s vehicle, or your own car. Therefore, if you value your vehicle and would like it to be covered in the event of an accident, this is not the right type of policy for you.



Third Party Property Damage

In addition to medical expenses detailed above, Third Party Property Cover also includes the cost of damage you cause to someone else’s vehicle or property.

Third Party Property Damage, Fire and Theft

All of the cover provided by Third Party Damage cover remains, but this level of insurance also includes the cost of fire damage and/or replacement if your car is stolen.

Full Cover – Comprehensive

The highest level of cover available and offers you the maximum level of protection.  Comprehensive cover insures you for the cost of almost anything that could happen to your car accidentally, and also to any other parties involved.

As with most things, it really does pay to shop around, as you’ll find features, benefits and costs vary hugely between insurance providers.  Why not save time and effort by using a comparison site like Captain Compare who will do all of the leg work for you, comparing costs and cover across a huge number of different insurers.

Now we have the basics out of the way, here are 5 little known facts about motor insurance that you may be surprised to learn:

1. Personal items lost due to vehicle theft are not necessarily covered by your auto insurance policy.  It’s most likely that your homeowner policy will cover these instead. Remember also the ownership rule – you will be unable to claim for anything stored in your car that doesn’t actually belong to you.  Work laptops, your friend’s iPod or your boyfriend’s leather jacket would be excluded from any claim you made.

2. Your occupation affects your car insurance premium. Teachers and engineers typically offer insurers a lower ‘risk’ and will therefore enjoy marginally cheaper premiums.  Of course there are many other factors at play here such as age, claim history, and even where you live, so don’t be tempted to try out a number of different job titles as lying about your occupation could invalidate your insurance.

3. The colour of your vehicle makes no difference to the price you pay for insurance! One of my favourite urban myths is that the colour of your vehicle affects your insurance premiums.  This is completely untrue although 25% of drivers still believe it does.

4. Young drivers may have to pay more in the event of a claim. Anyone under the age of 25 is classified as a ‘young driver’, and as a young driver you are deemed a higher risk to your insurance company, as you are more likely to be involved in an accident.  Because of this, many insurers have introduced something called ‘age excess’, which means you would be required to pay an additional amount (as set within your policy terms) in the event of a claim.

Debbie Fletcher is an enthusiastic, experienced writer who has written for a range of difference magazines and news publications. Follow her here: @Debbie_Fletch18

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