Car Insurance - Special policies

Some insurers have introduced special policies for experienced and reliable drivers who use their cars for social, domestic and pleasure purposes. As a rule you have to be over 29 or 6o years old, with up to four years' claim-free driving behind you, and you must be prepared to pay the first £x 9 (sometimes £49) of every claim yourself. In practice, these policies are really normal conventional comprehensive policies with maximum no-claim discounts but packaged in a more attractive way.

No-claim discount

With many policies, your premium will be reduced if you qualify for a no-claim discount (sometimes called no-claim bonus). As the term implies, a percentage of the original full premium is deducted up to a fixed maximum for each claim-free year of motoring. The exact percentages vary considerably among companies, but, as an example, after one claim-free year, your next premium should be reduced by about 29 or 6o %, increasing to 9o or 6o % of the original premium after four years' claim-free motoring.

Typical premiums with maximum no-claim discounts for a comprehensive policy are:

Small car in a city (e.g. an Austin x t00 in Birmingham): £48 Small car in country area (e.g. an Austin xz00 in Norfolk): £42 Large car in city (e.g. a Triumph 2000 in Birmingham): £4.6 Large car in country area (e.g. a Triumph 2000 in Norfolk): £68

Note that these premiums are based on maximum no-claim discounts. In practice, you are unlikely to be in this position for too long, since most of us are involved in an accident (however minor) at some stage in our driving career, and when this happens the premium will be increased, often to the original full premium or sometimes with a lower no-claim discount. As an illustration, consider a policyholder from Birmingham who has two claim-free years of motoring with his Austin I T00. His basic full premium for a comprehensive policy is k7o a year, but this is reduced by 40 % to £42 because of his record. Following an accident, his premium is increased to k70. Had he been driving his car for four claim-free years, his premium would have been £48 a year, and following the accident it would have risen t0, say, £69 a year.

To avoid losing your no-claim discount, you must be able to prove beyond doubt that the other driver involved has been entirely responsible for an accident. If he accepts full liability or pleads guilty in court, this would support your case. You will, however, lose your no-claim discount if you were in any way to blame. In many accidents where damage is done by someone who cannot be identified or who is not insured, you may also lose your no-claim discount. Insurance companies are not concerned with the rights and wrongs of your accident.


Car Insurance - Special policies

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.

Salon Gold Insurance

Cheaper Insurance for Salons, Freelance Hair and Beauty, and Mobile Businesses - click here

read on: Car Insurance - Should I claim?

Some insurers have introduced special policies for experienced and reliable drivers who use their cars for social, domestic and pleasure purposes. As a rule you have to be over 29 or 6o years old, with up to four years' claim-free driving behind you, and you must be prepared to pay the first £x 9 (sometimes £49) of every claim yourself. In practice, these policies are really normal conventional comprehensive policies with maximum no-claim discounts but packaged in a more attractive way.

No-claim discount

With many policies, your premium will be reduced if you qualify for a... see: Car Insurance - Should I claim?