Car insurance protects the driver, the car, passenger and other people from expenses incurred due to accidents. It also provides financial compensation to cover any damage to property, or injury to other drivers, passengers, or pedestrians. Insurance companies work with risk data or figures that calculate how an individual can make a claim. The more unsafe an individual is considered to be, the higher their premium will be.
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Max. No Claims
There are three main types of car insurance policies:
Insurance companies consider a range of factors so they can calculate the correct car insurance premiums, for instance;
Sometimes driving offences can also play a part on the insurance cost. The more severe the offence the more expensive the insurance will be. What is a no-claims bonus or discount? For each year an individual who has car insurance doesn’t make a claim, they accrue ‘no claims’ which enable them to access a ‘no claims’ discount on the following year’s premium For insurers this is evidence that as a driver is less of a risk , so cover is cheaper.
Normally individuals can take their car insurance no claims discount with them when they switch insurers, so long as they can evidence it. The discount might not be the same, but the new company should honour your claims history. No claims discount can be transferred to another vehicle, for example if a new car is acquired during the life of the policy.
An excess is a sum of money the insurance company requires an individual to pay towards the cost of making a claim. There are two types of excess insurance claims;