Automobile insurance is an increasing expense for almost all Americans. We can’t afford to have it, and we certainly can’t afford to not have it. When researching car insurance companies and comparing policies, it is a good idea to follow these easy guidelines to get the most coverage for your insurance dollars. Get discount car insurance quotes from as many carriers as you can. Automobile insurance rates may vary drastically depending on the model of your car and the type of coverage you need.
Consider as high a deductible as you can reasonably afford, since higher deductibles translate into lower insurance premiums. Review quotes and policies carefully to make sure you are only paying for coverage you really need.

If you have homeowner insurance, ask your agent if you are covered already for certain items you might be charged again for on your auto policy. After you have gotten quotes from different car insurance carriers, it is usually a good idea to create a spreadsheet to help you avoid comparing apples to oranges. Set up a scenario with car repairs and medical expense to best compare the coverage differences under real-life situations. Once you have chosen the two least expensive automobile insurance policies for the coverage you need, contact a reputable body shop in your area for a referral.

Automobile body shops deal with insurance companies every day, and you want to make sure the company you send your premiums to each month will be responsive and fair if you have to make an insurance claim. The body shop probably has a good insider opinion on how the insurance company operates, how long it takes to get an adjuster to view the damaged vehicle, how long it takes to get paid on a claim, how fair the estimate was, were used parts requested versus brand new parts and so on. Trust me, a 10 minute talk with a reputable body shop manager can reveal a lot of great information about an insurance company and how they tend to handle their claims.

A few dollars difference in premium dollars to get coverage from a company that handles their claims properly may save you a world of hassle in the event of an automobile accident.

Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker

I don’t sell car insurance, but as a lawyer practicing in the field of personal injury I frequently see people suffer because they have the wrong insurance coverage. Often, this happens because they purchased directly from an insurance company instead of an independent broker.

Many of my clients who have been seriously hurt in a car accident were struck by someone who had no insurance or only the minimum liability insurance coverage, which is 25,000 in New York and much less in many other states. Unfortunately, many of my clients were sold insurance policies with liability limits of 100,000 or 300,000, but were not sold matching uninsured and underinsured coverage.

Just this week, yet another new client had this problem. My client was a pedestrian crossing the street when she was struck by a car which fled the scene. The driver was caught shortly after leaving the accident, but the owner of the car only has the New York State minimum liability insurance of 25,000 and my client has serious injuries consisting of many broken bones including a fractured arm, leg and skull.

My client owns a car with liability insurance limits of 300,000, but she purchased the insurance from GEICO whose salesperson didn’t sell her underinsured coverage. GEICO does not use independent insurance brokers, but sells insurance directly to consumers through in-house sales agents.

For a small fee, my client could have purchased underinsured coverage of 300,000 which would have allowed her to recover 300,000 for her injuries instead of 25,000. Ironically, she did not need the 300,000 liability coverage to protect her assets. However, since you cannot buy underinsured coverage higher than your liability coverage, I would have advised her to purchase 300,000 liability coverage for the sole purpose of being able to purchase 300,000 underinsured coverage.

I have had many clients in this situation who lost their jobs because of serious injuries and incurred substantial debt. If they had matching underinsured coverage, the additional money available to pay their claim would would be a big help to pay their bills and get their life back together.

Underinsured motorist coverage will pay you money from your own automobile insurance policy if you have been hurt in a car accident by someone who was negligent for causing your injury and who had less liability insurance coverage than you did. Uninsured motorist coverage will pay you when the other car did not have any insurance coverage or the identity of the other car is unknown.

Underinsured and uninsured coverage is inexpensive and usually available in limits that match your liability insurance coverage. It is not available in amounts greater than your liability insurance coverage.

Underinsured and uninsured coverage is so important that a couple of states now require coverage limits matching your liability insurance limits, unless you decline the coverage in writing. Several years ago, I suggested to several New York State senators that they enact a similar law in New York.

I have also seen many clients who were not sold the maximum medical payments insurance, which costs me only 2.01 per month on my car insurance policy. This is particularly important for people who do not have a good health insurance policy. It is also beneficial for passengers who do not have health insurance.

Why should you buy car insurance through an independent insurance broker? The courts have defined the reason. There have been several “malpractice” lawsuits against insurance companies for failure to offer underinsured and uninsured motorists coverage limits matching the liability limits. However, when the insurance company sells directly to consumers, these cases have gone in favor of the insurance companies. The courts found that when a consumer buys insurance directly from an insurance company, rather than an insurance broker, the consumer is only buying insurance and is not paying for advice.

When you buy auto insurance from an independent insurance broker who represents several different insurance companies, you get the advantage of an insurance professional who can evaluate your needs and advise you accordingly. Additionally, only an independent insurance broker can provide you with a choice of insurance companies and premiums, so you get the best coverage at the lowest price.

Whether you buy your car insurance directly from an insurance company or through an independent insurance broker, always make sure that you purchase matching uninsured and underinsured motorist coverage and the maximum medical payment benefits.

Why is it getting harder to find car insurance for young drivers?

A number of car insurance providers have ceased to cover less mature drivers, so it is now essential to search around for car insurance for young drivers. A spokesman for the ABI, The Association of British Insurers stated that the reasons that certain companies had ceased to insure younger drivers was simply that they were far more likely to make a claim than older drivers.

These claims accounted for a disproportionate amount of money paid out by insurance companies when compared to more mature drivers, this according to ABI representative Malcolm Tarling.

UK government statistics show that back in 2004 there were over one hundred and fifty deaths of drivers who were aged sixteen to nineteen.

As a result of what insurance company’s see as a greatly increased risk, they have steadily increased premiums to match that risk, but now many companies are simply turning their backs on providing car insurance for young drivers, and not issuing them with policies.

It has been very well documented that younger drivers are considered by insurance companies to be very high risk, they are not only more likely to be involved in accidents, and they are also more likely to be involved in accidents resulting in injury and death. Younger drivers are known to statistically drive at higher speeds, not obey traffic regulations, and drive in a more reckless manner than people of their parents age.

Over the past 30 years the number of young people driving on the countries roads has increased several times over, and with this has come an increase in risk to the insurance companies, this risk has been passed on in the form of higher premiums for
car insurance for young drivers, which is often paid not by the young person but by their parents.

The ABI has urged the government to take steps to protect young drivers such as imposing a mandatory one year learning period before obtaining a full licence.

The organisation also strongly suggests that parents should avoid taking out car insurance for young drivers using the old ploy that the young driver is an occasional user of the vehicle, when in reality they are the main driver, a young driver should only be added to the parent’s policy in this way when they are in fact, an occasional user of the vehicle.

The ABI say, that it is false economy to make such an addition to their policy as the younger driver is likely to make a claim, therefore, hurting the parents standing with the insurance company.

They went on to say that it is important that if the young person is the main driver, they should take out a policy in their own name, which may be more expensive at first, but if that young person is responsible driver they will over a period of years establish their own insurance record, thus reducing the premiums over time.

Therefore the bottom line is, car insurance for young drivers is becoming harder to find, and when you do find it, it will probably be more expensive, so it pays to shop around for the best deal available.

Tips To Avoid Car Insurance Premium Increases & Becoming Assigned Risk

Below are some tips to reduce your auto insurance bill, prevent substantial premium increases and avoid becoming assigned risk.

Claim Reports: You know about credit reports, you should also know about claim reports. C.L.U.E. (Comprehensive Loss Underwriting Exchange), is a claim report service provided by ChoicePoint, Inc. ChoicePoint, Inc. states on their web site “C.L.U.E. is a claim history information exchange that enables insurance companies to access prior claim information in the underwriting and rating process. C.L.U.E. Personal Property reports contain up to five years of personal property claims matching the search criteria submitted by the inquiring insurance company. Data provided in C.L.U.E. reports includes policy information such as name, date of birth and policy number, and claim information such as date of loss, type of loss and amounts paid.”

Tip: C.L.U.E. reports contain information on claims history by a residence address. Just like credit reports, a C.L.U.E. report may have errors. It is advisable to obtain a copy of your C.L.U.E. report at ChoiceTrust.com to check your report for errors.

Credit reports: Insurance companies are now looking at credit reports to determine future premiums. They have determined that people with better credit scores have fewer claims. Consequently, if you have a poor credit report you may find yourself paying more for car insurance.

Tip: Always make at least the minimum payment for your bills on time, particularly your insurance bill.

Glass Coverage: Most auto insurance salespeople recommend “full” glass coverage for an additional premium, when you purchase collision coverage for your car. They remind you how much it costs to replace all your windows if broken by a vandal. What they do not tell you, and it is unlikely that they would even know (I would only trust the answer from an underwriter, not a sales representative), is whether your insurance company will use a previous glass claim to increase your future premium and whether they will report your glass claims to C.L.U.E.

Some insurance companies will report glass claims to C.L.U.E. and then use these claims to raise your premium or even worse, cancel your car insurance policy making you assigned risk with a substantial premium increase. Allstate notified me that after four claims in less than five years, they terminated my auto insurance policy and then offered to sell me coverage in their Indemnity Company with a shocking premium increase. These claims consisted of two claims for a broken windshield, one for a stolen and recovered car and one accident.

I had a sports car and had to endure a total premium increase over a period of four years of approximately 12,000 and remain claim free before I became eligible for coverage outside of the assigned risk pool. I wrote a letter to the president of Allstate complaining that they should not have considered my glass claims when canceling my car insurance because the glass claims were made under a separate part of the policy for which I paid a separate and additional premium. Allstate responded in a letter stating “Although this claim activity does not indicate that you were directly at fault in each loss, the frequency and severity of the above losses was not within our range of acceptability. After careful review, I regret to inform you that we cannot reverse our original decision regarding the above policy. We have however continued to offer coverage in our Indemnity Company.”

Tip: Check with the underwriting department of your insurance company to see if they will consider glass claims when assessing premiums or if they report glass claims to C.L.U.E. If yes, do not make a glass claim. The two windshields which Allstate provided me with were aftermarket windshields which would have cost me less than 300 each. During the last 30 years of my driving history, I have experienced two broken front windshields, one broken rear windshield and two broken side windows. While the financial risk of totaling a car can be substantial, the financial risk of replacing a windshield is comparatively insignificant. It does not make sense to file a glass claim if it will increase your premium. You may even want to decline this coverage altogether and save the premium.

Tip for leased vehicles: Some lease agreements require that the car be returned with an OEM windshield. If you lease a car and replace a front windshield using your “full” glass coverage, insist that the insurance company provide you with an OEM windshield from the manufacturer. If you pay for the windshield yourself, check your lease agreement carefully to see if you must use an OEM windshield from the manufacturer or if you can use an aftermarket windshield. Some people with leased cars who have replaced a windshield with an aftermarket windshield are shocked, when they return their car, to find that the leasing company is charging them 800 for a new OEM windshield, even though the aftermarket windshield is in perfect condition.

Car Rental & Towing Coverage: While it may be a good idea to have this coverage, it is not always a good idea to use it. Some people have realized that this coverage is not just available when an accident has occurred. For instance, some people have used the car rental coverage when their car was in a repair shop or the towing coverage when their car broke down on the road. As with glass coverage, using this coverage may be the same as filing a claim.

Tip: Check with the underwriting department of your insurance company to see if they will consider rental or towing claims when assessing premiums or if they report these claims to C.L.U.E. If yes, do not use car rental or towing coverage unless you have had an accident, in which case it will be part of the accident claim. If you are concerned about towing costs when your car breaks down, you can buy one of the roadside assistance memberships such as the one available from AAA which provides additional benefits not provided by your automobile insurance policy.

Youve now got your drivers license and for months, you eagerly search for a new car. Once you find your dream car, youre ready to take it out on the open road. Or are you? In many countries, it is compulsory to purchase auto insurance before driving on public roads and property. Auto insurance protects a third party against the financial consequences of loss, damage, or injury caused by any vehicle.

When first purchasing auto insurance, it is important to understand all aspects of the insurance. First off, an excess has to be paid. This is a fixed amount of money that must be paid each time your car is repaired through the insurance policy. A compulsory excess is the minimum excess payment that your insurer will accept. This varies according to your own personal details, driving record, and of course, insurance company. A voluntary excess is an excess that you agree to pay on top of the compulsory excess in case of a claim on the policy. A bigger excess reduces financial risk for the insurer, and thus they can offer lower premiums.

Depending on the location of the insurer, premiums may be government mandated or may be based on statistical data. The premium may vary based on many different factors that the insurer may deem will have an effect on the cost of future claims. These factors include gender, age, driving history, and usage of the car.

Because men average more distance driven per year than that of women, they have a higher proportionality of accident involvement. This leads insurance companies to offer lower premiums to women as opposed to men.

Teenage drivers have no driving record, and so they are less experienced on the road. This is the reasoning behind offering these teenagers higher driving premiums. However, these premiums may be lowered if the teenager decides to go through further driving training on the training that was required to obtain his or her license.

Car usage is also a large factor in determining premiums. By logic, it can be deduced that with more usage of the car, there is more potential for accidents, and thus more potential for claims on the policy. Insurers can estimate car usage by odometer, GPS, and OBDII (OnBoard Diagnostic) based systems. With the odometer system, customers buy prepaid insured miles and keep track of them on their odometer to determine when they need more. The GPS system tracks the usage of the car as it moves and records the distance it has travelled. The OBDII system works by utilization of the TripSense device. This connects to a computers OnBoard Diagnostic port, which is in all cars built after 1996.

Auto insurance may be both a blessing and a curse. Financially, it may save you a lot of money and keep you safe; however, auto insurance, like health insurance, can result in a lot of disagreement with the insurer and the insured. It may be wise to do you research before committing to one insurance program.

Some Tips On How To Obtain Cheap Student Car Insurance

Finding affordable car insurance for students can be something of a challenge. Insurance companies tend to classify students as higher risk along with teens and new drivers. And of course, most students need all the savings they can possibly get. Unfortunately, car insurance isnt cheap a typical student pays anywhere from 3,500 to 13,000 in insurance premiums in a year.

Obtaining a lower rate for your car insurance starts when you still in school you can often get a discount just by providing your most recent school report card. Most insurance companies consider students who have a grade B average, to be lower risk drivers. If your school or college offers a drivers education course, take the class and let your insurance company know.

If you have membership in any school or professional organizations, let your insurance company know. Some insurance companies offer significant discounts for membership of various alumni, fraternity and student associations; for example the Golden Key National Honor Society.

Let your insurance company know if you are also working while attending school. If you work close to your home and use your car primarily to go to and from your workplace, your insurance company will generally offer a discount. Students who live close to their school or college and generally dont drive much may be eligible for a low-mileage discount.

It is also less expensive to add a students name to an existing auto insurance policy, rather than take out a new one; although if the student is the primary driver or owns the car, they may be required to have a separate policy.

Please see our list of recommended insurance quote providers below to get free insurance quotes from many providers. These sites also offer pages and pages of free insurance information. Free quotes are available everywhere but these sites offer quotes from multiple companies. This way you are sure to get a look and the 3 to 5 cheapest possibilities and you can save more money.

Everyone who owns a car needs auto insurance. This article will give you some tips on lowering your auto insurance costs. You will find a checklist of items to ask your insurance agent that may qualify for discounts. Keep in mind that not all discounts can be applied with all insurance companies in all states.

1.Shop Around

Go to your favorite search engine and type in “free car insurance quotes online”. You’ll see a long list of insurance companies that you may even be familiar with. Visit at least five car insurance websites and look for a link to free quotes. You will then be asked basic information about yourself, your driving history, and your car’s make, model, and year. It just takes a couple of minutes, and shortly thereafter, they will email you a no obligation quote. Write down their website address, their toll free number, and customer service email address.

Each insurance company will ask you generally the same questions, and will give you options about how much coverage you will want. Find your current policy, if you have one, and take note of the coverage you currently have. Always provide the same information and ask for the same coverage at each company so you will be comparing apples to apples. Read the fine print and make sure nothing is excluded from the quote like Rental car coverage, towing, medical, etc…

For the purposes of the quote, the insurance company will not ask you your social security number, but keep in mind your actual cost maybe higher or lower depending on your credit history. If you’re not sure about some of the terminology or coverage, take notes so that you can ask the insurance company about them directly.

Once you have at least five quotes emailed to you, take the lowest two or three quotes and see if they are less than what you are paying now. Most likely at least one of them is much lower. At this point you will want to call them directly to get the most accurate quote by providing additional personal information. For additional discounts, here is a checklist of things you should ask about.

[ ]500 deductible

[ ]1,000 deductible

[ ]Paying monthly, semi-annually, or annually

[ ]More than 1 car

[ ]No Accidents in 3 Years

[ ]No Moving Violations in 3 Years

[ ]Driver Training Courses

[ ]Defensive Driving Courses

[ ]Anti-Theft Devices

[ ]Low Annual Mileage

[ ]Air Bags

[ ]Anti-Lock Brakes

[ ]Daytime Running Lights

[ ]Student Drivers with Good Grades

[ ]Auto and Homeowners Coverage with the Same Company

[ ]College Students away from Home

[ ]Long-Time Customer

[ ]Other Discounts

2.Saving Insurance Premium on cars you own outright.

If you own a clear title to your car, meaning there is no bank loan on it, then you may want to consider dropping the collisioncomprehensive coverage. As a rule of thumb, if the cars value is less than 3000, it may not make sense for you to pay for this additional coverage. Over time, the cost of the additional insurance premium will exceed the value of the car. It’s pretty simple math.

Check the fair market value of your car either through Edmunds.com or even your local newspaper. See what other people are trying to get for the same car. Keep in mind your cars mileage, condition, and age. Has it been in an accident before? Does it have unusually high mileage in excess of 15,000 miles per year? Does it need new tires? You get the idea. Be realistic, because in the event that this car is in an accident and is damaged beyond repair, it is unlikely you will get the full value of the car.

3.Ask About Insurance Rates in Different Areas

Rates can vary widely even in the same state. Different locals have different accident rates, population, and crime. These all factor in to the final cost. If you are moving to a different area, ask about what the rates are for that town.

4.Ask About Getting Other Insurance Policies Together With Your Auto Insurance

Combining insurance policies with the same company can often give you additional discounts. If you own a home, ask about combining your homeowners insurance with your auto insurance. Also ask about other polices, such as life, health, and business insurance. Most insurance companies cover a wide range of policies and will give substantial discounts when you do business exclusively with them.

5.A Clean Credit History Can Reduce Car Premiums:

Having good credit can also lower your insurance costs. Many insurance companies will use credit information to price auto insurance policies. Drivers with good credit and a clean driving record may qualify as a “preferred” customer with lower risk and will be rewarded with lower premiums.

6.Low Mileage Discounts

Some companies offer discounts to drivers who drive a lower than average number of miles per year. If you car pool, take public transportation like the subway, or work from home, you will most likely drive few miles per year than the average driver.

7.Group Insurance

Some insurers offer discounts to drivers who work for certain companies or belong to professional associations, and alumni groups. Ask your employer, group or clubs that you belong to if they have any special arrangements with different insurance companies.

Using all of these tips can save you hundreds of pounds per year, especially when you have multiple cars and multiple drivers in the same household.

Car Insurance Quote – Things To Know To Get Very Cheap Car Insurance And Quotes

Auto insurance premiums vary widely from state to state and even within states. The same person may find swings of as much as 700 on the cost of an annual policy. Insurance agents are not legally bound to tell a perspective customer about discounts which may apply to hisher insurance. There are, however, things the consumer can do which may lower the price paid for auto insurance.

Higher deductibles

The single quickest and easiest way to lower your insurance premium is to raise your premium. Having a 1000 or even a 1500 deductible can lower premiums 15 to 20 percent. If you decide to go this route, consider putting the money saved the first year into an account earmarked to pay the deductible should you have any accident.

Investigate auto records

Your driving record may be unblemished but the record of the car model you own can also have an affect on your premiums. Insurance copies compile extensive reports on the way cars respond in accidents and how popular certain cars are with thieves. Cars with poor crash test ratings and cars that are frequently stolen cost more to insure. When buying a new car use an auto buyers guide to compare crash test and theft rankings.

Use the same insurance company

If you have more than one vehicle insure all of them with the same company. Almost all insurance companies offer multi-car discounts. Many companies offer further discounts if you use any other products they offer such as homeowners insurance and life insurance.

Getting many quotes and comparing them is the best way to check pricing, coverage and save money.

And, dont forget, the best way to lower your car insurance premium is to drive safely.

Please see our recommended sources for insurance quotes from multiple providers. We have done the research so you don’t have to.

During the last few years, the average car insurance premium has virtually been at a stand still. The reason is price competition. There are now over 100 car insurance companies fighting for your business and competition is fierce. There are always bargains to be found as companies cut their premiums to attract motorists in the hope you’ll remain loyal and stick with them in following years. Indeed, every year, 23% of us renew our motor insurance with our existing insurer.

But in recent years the Internet has created a revolution in the marketing of car insurance. It makes shopping around so easy without the need to make loads of phone calls and without spending time threading yourself through the automated phone systems beloved by so many call centres.

But you’d be wise to remember that the lowest premium is not always the best. For example, some insurers have recently pushed up the level of claims excess they want you to pay as this helps them provide you with a much lower quote. You should also check out whether a courtesy car is provided if your car is in for repair. You might also feel you want legal insurance cover and automatic windscreen replacement. An accident helpline can also very useful in the middle of an emergency! You’ll need to phone the broker or insurance company you’re thinking of dealing with in order to check out these points.

17 Top Tips

for cheaper car insurance

Get your online quotes through car insurance brokers. Their computer systems will search for the best quotes from 40 or more car insurers and save you lots of time. When you’ve got their cheapest quote, phone them to discuss the relative merits of the cheapest quotes they found.

Garage your car at night. Insurance companies know that a car left on the road at night is much more vulnerable to theft and damage. If you don’t have a garage, if possible keep it on your drive.

Update the estimate of your mileage each year. If you’ve moved home or changed your job you may have shorter commuting journeys. If so, your premiums should be less.

Your premium can be influenced by your job. Landlords, journalists, and professional footballers to name but a few, all pay more! Go for a job that’s a bit more boring! Accountants and civil servants pay less!

Getting married could save money on your car insurance, particularly if you’re male and under 30.

If you’re under 25, add an older experienced driver with a good riving record onto your policy as a named driver. But don’t let him be too old! premiums start rising again after age 60!

Consider paying a higher accident excess. The average excess is about 100. If you are prepared to increase you claims excess, your premium will fall significantly.

If you have cheap or old car, consider buying just 3 rd Party cover. Get quotes for 3 rd Party and comprehensive insurance and weigh up the savings.

Are you aged between 18 and 21? Then consider pay as you go insurance. Norwich Union has recently introduced the first pay as you go insurance policy, which charges you exactly for the miles you drive. It also charges more for the miles you drive between 11 and 6 at night. The system works through a Global Positioning System which is fitted to your car for a one off fee of 199. The GPS black box tells Norwich Union how many miles the car’s been driven and they send you an monthly invoice.

A new driver? Spruce up your driving technique by taking some more driving lessons. New drivers can slash their insurance costs by as much as 35% by taking Pass Plus lessons. These give you extra training for driving in rush hour traffic, motorway driving and night driving. Lessons cost between 15 and 30 per hour. (www.passplus.org.uk). You can also reduce your premium if you’ve taken a course with the Institute of Advanced Motorists (www.iam.org.uk).

Buying a new car? Then check out the insurance group before you buy. Cars fall into one of 20 insurance groups with 1 being the cheapest and 20 the most expensive. If the proposed insurance premium is too high, chose a car that’s in a lower group.

High spec and performance cars attract thieves and are more expensive to repair – so they always cost more to insure. Consider something with a little less voroom!

It’s hard we know, but try hard not to speed! Most insurance companies will ignore one fixed penalty fine but get more and your premium will rise.

Got 4 or more years no claims discount? Pay the extra get the discount protected.

Fit a satellite navigation system. Some insurance companies have noticed that sat nav cuts the accident rate by letting drivers concentrate on the road. Insurers will soon be giving discounts if you have it fitted.

Get a engine immobiliser or alarm fitted. It could save you between 5-8%.

Got more than one car in the home? Some insurers will give a discount for insuring them all in one policy.

An excess payment is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair garage when you collect the car. If your car is declared to be a write off, your insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.

If the accident was the other drivers fault, and this is accepted by the third party’s insurer, you’ll be able to reclaim your excess payment from the other person’s insurance company. But what if the other driver is uninsured?

All motorists know that it’s a legal requirement (under Section 143 of the 1988 Road Traffic Act) to have insurance for any damage they cause to third parties. But still many drive without insurance. An estimate of the incidence of uninsured driving in the UK is hard to come by and, for the obvious reasons, those drivers involved in breaking the law have every reason to keep quiet about it.

Calculations from the Department of Transport suggest that in the UK around 5% of vehicles are being driven without valid insurance. This group of people not only impose costs on honest motorists in the form of higher premiums, but their presence on our roads also represents a serious risk to other road users. Consequently, uninsured driving is increasingly being regarded as a major social problem.

But driving without insurance is not a victimless crime. If you have an accident with an uninsured driver and the accident wasn’t your fault, the repair costs will be paid for by the Motor Insurers’ Bureau that’s funded in its entirety by the industry, or by your insurer. Therefore, if you’re involved in an accident caused by an uninsured driver you’ll eventually get you car repaired but you’ll still have to pay the excess and there’ll be no one to reclaim your excess from.

What is a Compulsory Excess?

A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses do vary according to your personal details and driving record and by insurance company. Today the average excess is around 100, but younger drivers could be faced with excesses of up to 500 – whilst more mature, experienced drivers with a good driving record, could be offered an excess of just 50.

So what is a Voluntary Excess?
In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer I able to offer you a significantly lower premium.

The garage has repaired my car but it won’t release the car too me until I pay the policy excess to them. Is this right?

Yes, that is normal practice. But make sure you inspect the car when you collect it. Satisfy yourself that the repair is perfect. Then make sure you keep their receipt for your excess payment as you will need this if you’re reclaiming against a third party’s insurance. And just in case there’s a dispute, it’s a good idea to make sure the repair garage gives you a repair schedule. This will list all the repairs that were made to you car.