Car Insurance - Knock-for-knock

Most, but not all, insurance companies operate what is called a ' knock-for-knock ' agreement with other companies, under which, following every accident, each insurance company pays for the damage to the car it has insured (provided the policy fully covers the damage risk) regardless of who is to blame. The aim of this is to cut down administration costs and speed claims when cars with different insurers collide. As an example of how this works in practice, consider a collision involving two drivers. If both cars are insured under comprehensive policies, each insurer would pay for the damage of his own client's car, regardless of who was to blame for the collision. If only one car owner had a comprehensive policy, this insurer would pay not only for damage for his car, but, if found liable, for the other car as well. The non-comprehensive insurer would not pay any damage at all in this case. If neither car is comprehensively insured, the ' knock-for-knock ' agreement does not hold.

By this agreement, insurers do not claim money from each other. Overall, they pay out more than their fair share in some cases, but less in others, balancing out over a large number of claims.

Further cover Loss of use of car

With most accidents, insurance companies settle claims promptly afterwards, but if your car has been stolen, or so severely damaged that it cannot be easily repaired, you may incur considerable additional expense if you are forced to hire another car or use taxis or other forms of public transport. The standard motor policies do not cover this eventuality, but you can insure against it as an extra. Some companies will only give you this compensation if you have been in a collision, but a few do extend it to loss by fire or theft. No insurer, however, will pay you for any claim if you are unable to use your car because of wear and tear or a mechanical breakdown or as a result of frost damage.

Usually there is a limit of a month's cover for any one claim or in any one year on this extra, and if yoti are still without a car after that, you will have to bear the extra cost yourself. The maximum cover obtainable also varies - from only a pound or two to around £9 a day. You may also have to pay yourself for your extra expenses during the first seven days that your car is unusable.

The premium for this insurance depends on your age, type of car and past record. If you qualify for the maximum no-claim discount, you should have to pay about £62.90 a year. You must keep all your bills to prove your claim for all the extra expenses you incur.

For most people this comparatively expensive cover is an unnecessary luxury, but if you are an invalid, or dependent on your car in some other way, the extra cost may be worthwhile.


Car Insurance - Knock-for-knock

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: Car Insurance - Windscreen Cover, sometime provided free with comprehensive cover

Most, but not all, insurance companies operate what is called a ' knock-for-knock ' agreement with other companies, under which, following every accident, each insurance company pays for the damage to the car it has insured (provided the policy fully covers the damage risk) regardless of who is to blame. The aim of this is to cut down administration costs and speed claims when cars with different insurers collide. As an example of how this works in practice, consider a collision involving two drivers. If both cars are insured under comprehensive policies, each insurer would pay for the damage of his... see: Car Insurance - Windscreen Cover, sometime provided free with comprehensive cover