Things You Should Know About Vehicle Insurance

Vehicle insurance can be a tricky task, especially when you’re unsure of what policy is best for you and your needs. As reliable insurance brokers in Bolton, we spend time with you and help you understand and fulfil your insurance needs.

Finding the right coverage options is our top priority so, in this article, we’ll discuss some important factors to consider when taking out insurance, including the difference between collision and comprehensive coverage, how prices are determined, black box policies and much more.

How Are Prices Determined?

Insurance prices can be calculated in a number of ways and will vary depending on what you want to buy, though they are worked out through the same fundamental factors. These factors include the make and model, how the vehicle is used (business/leisure), and the driver’s personal record.

Although these factors make up the foundations of the policy, other elements are also taken into consideration, such as:

  • Age, gender and marital status – statistics have shown that younger drivers and male drivers are more prone to accidents, and those who are married are less likely to report an accident claim.
  • Location – typically, urban areas are more prone to crime and are considered a more significant risk than rural settings with less traffic.
  • Policyholder’s credit score – data within the insurance industry has shown that drivers with a good credit score generally have fewer accidents on the road (many dispute this claim as it unfairly punishes lower-income car owners).

Using fleet insurance as an example, the package is tailored around protecting your fleet from liabilities that arise daily. Taking out a comprehensive fleet insurance policy is a step in the right direction as it provides protection for all your commercial vehicles under a single policy.

windshield in car broken

The Difference Between Collision and Comprehensive Coverage

It’s easy to get confused when choosing which insurance you need with jargon words like collision or comprehensive. Below we have outlined the meaning of each:

  • Comprehensive coverage gives you protection against damage or theft as the result of an incident as opposed to a collision. This can include falling rocks or trees, fire, flooding, vandalism or hitting an animal.
  • Collision coverage will reimburse damage that has happened due to a collision with another vehicle or object (like a tree, for example). This type of coverage also accounts for damage caused by potholes or if you roll your car over.

While comprehensive and collision coverage are optional to protect your vehicle, liability insurance is a legal requirement that covers the costs associated with injuries, death, or damage caused to other vehicles or surrounding properties.

Third-Party Cover vs Comprehensive Insurance

The main distinction between third party cover and comprehensive insurance is that comprehensive cover safeguards your vehicle from accidental damage claims whilst third party fire and theft does not.

In terms of price, for the majority of drivers, comprehensive car insurance will cost the same (or less) than third party cover, and you have the added benefit and peace of mind that your vehicle will be covered for any damage.

Take a look at our range of motor insurance services, which include goods in transit cover, truck and HGV insurance, courier insurance and much more.

Black Box Policies

Most insurers will base the annual premiums of black box policies on driving behaviour, inclusive of mileage driven, braking, accelerating and speed. As most accidents happen early in the morning or late at night, driving during these times could affect your driving score on some policies. However, it’s worth noting that very few black box policies will restrict the time of day that you can drive.

cars in trafficReporting Incidents

No matter how small, you must report all incidents to your insurance provider — this includes accidents that weren’t your fault. You could be at risk of having your policy cancelled or payout refused if you don’t declare an incident, so it’s important to keep a record and report what happened.

When you report an accident that wasn’t your fault, it should not affect your no-claims discount though it’s essential to consider that it could impact your premium when you renew the policy.

As insurance brokers in Bolton, IC Insurance does all the hard work for you. Let us take care of your insurance needs. You don’t have to worry about a thing – we’ll search all companies to find the best quote and provide you with affordable insurance cover on our vast portfolio of products.

We’re a goods in transit insurance broker and can give you details of the type of insurance cover you need to protect packages and delivery items while out on the road as well; crucial if you need to transport merchandise from point A to B. Our process is quick and straightforward and offers you handpicked insurance policies you can trust.

We are a team of experienced insurance
brokers working together with our customers to understand and fulfil their insurance needs.
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