A buyer's guide to cheaper car insurance
With so many cars on the road at any given time, you can be sure that someone somewhere
has just had a bump or an accident. This may involve one, or any number of other vehicles,
people or buildings etc. Somewhere down the line, those involved are going to need either
reimbursement for their costs to repairing the damage they received, or alternatively,
they need to cover the costs of the damage they caused.
Car insurance is there to give you peace of mind and protection in the event of an unlikely
or unpredictable loss.
Insurance companies calculate a premium based on a complete history and risk assessment
of each customer. So your age, driving experience, vehicle, area you keep the vehicle,
mileage etc, all play a part in how cheap or expensive your policy will be.
Once a policy has been bought and a claim occurs, the insurance company pays out the amount
of money they agreed to pay when they issued the insurance policy.
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The number one reason for every driver to have valid and current insurance on their policy
is it's the law! You're legally obliged as a driver to be insured against the possibility
that you might injure another person or cause damage to another person's property.
Most insurance companies offer additional cover or ancillaries, to add to the policy for a
set fee. Extra cover may include legal cover, breakdown cover, payment protection etc.Insurance
is a wise choice when there is a risk that you would be responsible for thousands of pounds
worth of damage. For example, if a pedestrian is injured due to a driving accident which
is your fault, they could be out of work for a quite some time and could have extensive
medical costs that you would be liable for. Insurance offers you protection for these
unexpected costs meaning it might be worth not buying the cheapest cover you can find.
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The Motor Insurers' Bureau was set up in 1946 to provide a way of compensating the
victims of uninsured or untraced motorists. All motor insurers must be members of
the Motor Insurers' Bureau and contribute to its funding.
Also, in 2001, the Motor Insurance Database was set up by the insurance industry to help
identify uninsured drivers. The Motor Insurance Database is run by the Motor Insurers'
Information Centre.
This database looks to hold details of all private and fleet motor insurance policyholders.
This information is open to the police, enabling them to carry out on-the-spot checks on
motorists to confirm they have current and valid insurance.
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What happens when an uninsured or untraced driver injures a third party or damages their
property? The third party should receive compensation from the Motor Insurers' Bureau even
if technically the policyholder breached the terms of the contract they hold with their
insurance company. Also, an insurance company is required to carry the cost involving stolen
vehicles should a car thief damage property or injure another person, (Allowing for the
driver to be identified) the insurance company for the car will cover the compensation.
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