Insurance FAQs

Here are the answers to some of our most frequently asked questions.

Insurance FAQs from our dedicated team of Insurance specialists

Why do I need car insurance?

Motor insurance protects you against liability in the event of any accidents you may be involved in. It is a legal requirement that any motor vehicle kept or used on the public highway has insurance for third party liability at the very least. It is an offence to drive your car or allow others to drive it without motor insurance.

Which convictions do I need to disclose for motor insurance?

The short answer here is – if in doubt, disclose it. Insurers know that there is a connection between the number of driving convictions a person may have and their likelihood of making a claim. So people with motoring convictions are likely to face higher car insurance premiums until their driving record improves. You should disclose ALL non-motoring convictions that fall inside the Rehabilitation of Offenders Act. However, spent convictions need not be disclosed under the Rehabilitation of Offenders Act 1974.

What does Comprehensive Insurance cover?

Comprehensive Insurance usually covers:

– Liability for injuries to other people, including passengers
– Liability for damage to other people’s property
– Liability of passengers for accidents caused by them
– Liability arising from use of a caravan or trailer whilst attached to the car
– Fire damage and/or theft
– Accidental damage to your own car
– A personal accident benefit – certain amounts are paid in the event of the death or specific permanent disablement of the policyholder (and sometimes his or her spouse or family member)
– Medical expenses necessarily incurred, up to a stated limit
– Loss of or damage to personal effects in the car, up to a stated limit

What does Third Party Insurance cover?

Third Party Insurance policies usually cover:

Third Party Fire and Theft policies usually cover the same as Third Party policies, but with cover for loss in the event of fire, theft or attempted theft of your vehicle.

Will I get the Driving Other Cars cover on my policy?

Many car insurance policies cover the policyholder while driving a car which belongs to someone else. Driving other cars may be on your policy irrespective of the cover; cover is restricted to third party only, even if you have a comprehensive policy for your own car. Accidental damage to the borrowed car will not be covered by your motor insurance.

What does RTA mean and how does it affect Car Insurance?

RTA stands for Road Traffic Act which states that all motorists must be covered by car insurance in order to protect the driver from third party liability. It is an offence to drive your car or allow others to drive it without insurance.

What is an excess on a Car Insurance policy?

Excess is the amount that you agree to pay towards the damage to your vehicle. You should make sure you are aware of any applicable excess and policy limits your car insurance policy may have. You may have more than one excess amount, i.e. a glass claim may be subject to a different excess than if your car is stolen. There is always an excess for windscreen replacement claims and most insurance policies also have maximum limits the insurer will pay out in a claim. You need to check you would be able to afford the excess in the event of a claim, and that the maximum limit would be sufficient to cover your loss.

How are car insurance premiums calculated?

Your car insurance premium is calculated by determining various factors which include the type of car, where it’s kept, who drives it, what it’s used for and what cover you require.

As a general rule of thumb, smaller engine cars are cheaper to insure than larger engine cars, and prestige cars are more expensive as the parts to repair will cost more.

The older the car, the more discount it attracts for comprehensive insurance.

Car theft is higher in urban areas and consequently means your insurance premiums will be higher than for somebody living in a more rural area. The postcode where the car is kept is a rating factor so if it is not kept at your address you need to advise us.

How do I reduce my car insurance premium?

You can reduce your car insurance premium by using an insurance broker who may have access to special rates in your area and will generally quote from a panel of insurers to provide a quotation, tailor made to your requirements. You should consider the following when obtaining quotations:

Drivers
The fewer people that drive the car, generally the less time it will spend on the road. Restricting those insured to drive your vehicle, only drivers over 25, or even just yourself for example, could reward you with a discount. Your insurers will want to know about anyone who is likely to drive – particularly their age, experience, claims and driving record and occupation.

Vehicle use
Your policy and certificate describe what your car is insured to be used for. For example, if you or any authorised driver want to use your car in connection with work, make sure that your policy covers this.

Mileage
Many insurers allow a discount for drivers that don’t have a high annual mileage. For example, by restricting your mileage to 3000, 5000 or 8000, you may attract a premium discount.

No Claims Discount
Policyholders with a claim free (not blame free) record normally qualify for a premium discount. Scales vary from one motor insurer to another but can range from 30% for one claim free year up to 60% or more after four or five years.

What do I do if I have a car accident?

Visit our Claims page for more details on how to make a claim with BP Insurance Brokers.

Do I need Protected No Claims Bonus on my insurance policy?

For an extra premium, you can protect against losing your no claims bonus. This is usually available to policyholders with four or more years’ no claims bonus, who have proved they have a good driving record. This usually allows you to make two fault claims in a three to five year period without reducing your no claims bonus.