Car Insurance Tips & Tricks

System

Your trick for lowering car insurance costs by insuring in parents name is illegal. Don't do it. If the insurer finds that the young driver is the main user (ie accident on the way to work) they will throw out the claim and decline insurance. If they do that just try getting insurance anywhere, at any price. You wont. I've been doing motor insurance for 30 years. Trust me on this one.

System

;D

Hi

This is my first post on here, what a great website!!

Just been reading a few of the tips above and I must admit, they have brought it down a bit:

Im just 20, with 2y10m driving experience and 1yrs NCB, driving a 2000 VW Golf 1.4S.

With https://www.elephant.co.uk I was quoted £654, thats pretty damn good!!

Im also using a 0% CC to pay it off as advised in another aprt of this site!!

pauljoedavis

Can I just put out a word of warning?

When taking out car insurance (I did with Tesco) check they include free green cards.

I just had to pay extra for mine and will do every time I go abroad. £26.00 last time. OUCH!

Paul

System

Re 'protected no claims bonus' - we have been protecting our NCB for years, but a couple of years ago had an accident (my fault). On renewal the premium had risen substantially. When I queried this, saying we had protected NCB, I was told that I had not lost or had my NCB reduced, but that the actual premium itself had been loaded due to the accident! and that the underwriters were at liberty to do this.

So much for 'protected': what is the point of having 65% NCB when the insurance company can double the initial premium? ???

Dan29

Re 'protected no claims bonus' - we have been protecting our NCB for years, but a couple of years ago had an accident (my fault).  On renewal the premium had risen substantially.  When I queried this, saying we had protected NCB, I was told that I had not lost or had my NCB reduced, but that the actual premium itself had been loaded due to the accident! and that the underwriters were at liberty to do this.

So much for 'protected': what is the point of having 65% NCB  when the insurance company can double the initial premium? ???

Assuming (for ease of calculation) that your basic premium in the year of the accident, before NCB discount, was £1000:

65% NCB discount makes your actual premium £350.

You have an accident, so the insurer doubles your renewal premium to £2000.

With NCB protection, your new premium is £700. Without, it's £2000.

THAT's why you pay for NCB protection

wallyberry

Ian asked if you lost out by amending/cancelling your policy if you'd paid for it all up front because it's cheaper that way - don't quote me on this but:

During the year I worked as a trainee accountant I audited a small insurance brokerage, and technically, no, as far as I could tell (being the office junior and given all the basic tasks to do), you don't lose out if you ask for the cost of the insurance you haven't used to be returned to you - they should do it. However, you may have to ask for the money back and you'd be amazed how many people don't!

Moss_3

Can anyone clarify the legality of this(referring to an article of October 18th on this post)?

If you are insured fully comp on your own car and covered to drive any vehicle, third party, with owners permission, can you drive, for instance, a car owned and registered by your wife even if the car itself is not insured? It would be possible to tax this car if wife had her own insurance and this was a third car in the family by getting a temporary insurance cover for second vehicle.

Hope this makes sense but is it legal?

lisyloo

I don't believe this is legal (although I can't give you a source).

I believe the car does need to be seperately insured.

What happens if the handbrake fails and it rolls down a hill and does some damage or causes injury?

I have also read somewhere that the third party insurance is intended for emergencies rather than every day use.
For example you break your ankle so colleague has to drive your car.

I don't think that what was suggested on October 18th is legal.

I am pretty sure that the car itself needs to be insured.
Cars do not need a driver to have accidents, they occassionally catch fire, explode or roll away all by themselves.

Moss_3

Thanks for your response, Lisyloo.

I see your point. However, you can get insurance for third party only if you chose to and it is legal to store a car without any insurance on your drive.

I'm not sure what the situation would be if the car was only to be used occasionally in order to keep it running.

What do you think?

lisyloo

However, you can get insurance for third party only if you chose to and it is legal to store a car without any insurance on your drive.

Agreed on both counts.

I'm not sure what the situation would be if the car was only to be used occasionally in order to keep it running.

What do you think?

My belief is still that the car needs to be insured (minimum 3rd party) if it is being driven on the road.

The fact that it's only being done very occassionally does not affect the legal requirements.

I don't believe you can use the "drive other cars 3rd party" insurance to legally drive an uninsured car.
That's my belief anyway.

Why not ring up your insurance company and ask?

"If I drive someone else car on the 3rd party cover, then does that car need to be insured as well?".