Useful car insurance information

How premiums are calculated - Factors taken into account in setting your insurance premium include who will drive, the type of car, where it is kept, the uses to which it is put, and the type of cover required.

When buying Car Insurance you must give the insurer full information.

Family cars with moderate repair costs are usually cheaper to insure than large or powerful cars which can be expensive to repair.

Each popular new model of car launched in the UK is given an insurance group rating which insurers find helpful as one of the many inputs to their premium decision and you may wish to consider these when purchasing a new car. Click here for further information on the group rating system.

Older cars often attract discounts for comprehensive insurance premiums.

Insurance claims are more frequent in urban areas so motorists in cities usually pay more for their insurance than those who live in the country. The place where the car is kept is a rating factor, so tell your insurers if the car is not kept at your home address.

Speeding Convictions - Insurers know that there is a connection between the number of speeding convictions a person may have and their likelihood of making an insurance claim. So people with speeding convictions are likely to face higher premiums until their driving record improves.

Drink Driving Convictions - Drink driving convictions are taken very seriously by insurers. Convicted drivers returning to the roads may face difficulty in obtaining insurance and will certainly have to pay far higher premiums than before their conviction. The level of cover available may be reduced - for example from comprehensive down to third party fire and theft. These higher premiums and cover restrictions can well last for a number of years.

Giving Lifts - All ABI motor insurers have agreed that if your passengers contribute towards your running costs your insurance cover will not be affected, as long as lifts are given in a vehicle seating eight passengers or less. This agreement does not apply if you make a profit from payments received or if carrying passengers is your business.

Changing Your Car - You must tell your insurers if you change your car. A premium adjustment may be necessary and you will probably need a new certificate.

Motoring Abroad - All UK motor policies provide the minimum cover required by law in other European Union countries or the minimum cover required by UK law if that is greater. This cover does not automatically include theft or damage to your car.
See Insurance & Motoring Abroad.

Look After Your Car - All insurance policies require you to make sure your car is in a roadworthy condition. If you don't, you may find that your claim will not be paid.
From time to time vehicles may be subject to a manufacturer's recall to address a possible safety concern. You should check with your local dealer or vehicle manufacturer to see if your vehicle may be affected.

Tell Your Insurer - You must tell your insurer of any changes in the details you have provided such as address, occupation, type of car and motoring convictions including fixed penalties.

Remember - not only is it an offence under the Road Traffic Act to make a false statement or withhold information for the purposes of obtaining a certificate of motor insurance, but it may also invalidate your policy.