Car insurance advice
Drivers generally get the 'market value' for written-off cars
Will an insurance broker get me the best deal?
For many drivers getting a quote from a Best Buy car insurance company will suffice. But some people, such as young, inexperienced or older drivers, as well as drivers of rare or high value cars, the best route may be to use an insurance broker.
Brokers will offer advice on the type of policy that is best for you and, once they have established what you want from a car insurance policy, they will then be able to find the best policy for you, at a good price.
Some brokers operate locally, others are national, and some offer an internet service. To find a broker, contact the British Insurance Brokers' Association .
Can I switch companies or cancel my car insurance policy before it's due for renewal without losing money?
No. You can change insurer at any time and you'll get back a proportion of the annual premium. How much you get back depends on how close you are to the renewal date. If you've claimed on the policy, you won't be able to get anything back. If you cancel, lots of insurers will charge you a fee, which tends to be between £25 and £35, but can be as high as £50.
How do insurers decide how much to charge for a car insurance policy?
Insurers set premiums by assessing your chance of having an accident, the likely cost of repairs if you do have an accident, and the risk of having your car broken into or stolen.
They judge these risks according to where you live, the car you drive, your age and occupation, and where you keep your car overnight, for example. Some insurers will also take account of other factors they believe are significant, such as your marital status.
When I ring around for car insurance quotes, I get such a huge range. How can they vary so much for the same type of cover?
Most car insurers specialise in certain sectors of the market; high-risk or low-risk, or people over a certain age. But it's not always clear who their policies are aimed at. So if you call an insurer who doesn't specialise in covering people with your profile, you'll probably get a very uncompetitive quote.
We give Best Buy car insurance policies for a range of circumstances, so you can narrow your search to insurers most likely to give you a good quote.
Will it be more expensive to pay for my car insurance in instalments?
Yes. Lots of insurers charge you interest if you opt to pay for your insurance by monthly instalments. We found companies charging anything from 6% to 29%. An average APR of 18% would add £126 to the annual cost of a £700 premium.
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My car has been written off but my insurance company offered me much less than I believe it's worth. What can I do?
If your car is written off or stolen, car insurers will usually pay you the 'market' value for the car. This normally comes from industry-accepted price guides, which are for a typical car of your type and age. But the amount they offer you won't take into account whether your car was in particularly good condition (which would mean you'd get more for it if you sold it).
If you really think the insurance company is selling you short, you can complain. Try and gather evidence of what your car was really worth, for example, adverts for cars similar to your own which are being offered for more than the amount the insurer says it's worth.
If that doesn't work and you want to take matters further, you can complain to the Financial Ombudsman Service (FOS), if your insurer is a member.
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