3 Things You Should Know About Car Insurance

Mandatory Comprehensive Insurance

Comprehensive vehicle insurance is a contract between you and your chosen insurance company. It protects you against:

  • Accidental loss or damage to your vehicle
  • Legal liability for loss or damage to another person’s property

When budgeting for a new car ensure you can afford your car repayments as well as your insurance premiums. Even one instalment missed can lead to your policy lapsing and putting you at risk.

Vehicle Cover Provided

Before taking out car insurance, assess who you need to cover under your policy, which may include:

  • Insured only
  • Insured and spouse
  • Insured and other named drivers and licensed drivers.

Apart from deciding who will be covered by your insurance policy, make sure you understand the depth of cover you’re taking out, and read your policy document carefully before signing it.

If your car is insured for private use all personal, non-business related use would be covered as well as certain business-related travel, for example, travelling to work and back. Your private use policy could also provide cover when you visit clients or other businesses and could also include any samples you carry as commercial goods in transit are often also insured.

If your circumstances change, for example, you start lending your car to someone else to use in a business you have started, reassess your cover and determine who should be covered by your policy and whether your vehicle should be insured for commercial rather than private use. It is environmentally and financially wise to join lift clubs, but if you decide to use your car for this purpose, check ramifications with your insurance company.

Insurance Renewals

You can choose to take out an insurance policy for a year and renew it thereafter. If you do, you’re likely to receive a renewal notice from your existing insurer and can renew your policy with them or test the market for a better option. Constantly changing insurers could affect your premiums negatively, so bear in mind that loyalty can possibly pay off in the long run.

When you start planning to buy a new car, remember to budget for vehicle insurance. When buying a second-hand car through Auto Pedigree, we’ll help you get the best comprehensive vehicle insurance cover that suits your individual needs.

For a free insurance quote, fill in the form and one of our brokers will respond as soon as possible.

Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.