Summary
Drivers can save on their car insurance cover by agreeing to a higher excess – this article explains how it works.
Author: Anna Richardson
Everyone has to agree to an excess of some kind when getting a car insurance policy
– it's the way the system works. Basically it means that if you have an ( car insurance quotes ) accident and your car needs to be repaired, you will have to pay a set amount towards the bill. If the accident is your fault, you lose the money. If the accident is not your fault, the third party insurer reimburses you for the excess payment. If your car is written off, then your insurance company will deduct your excess from the settlement payment.
Things aren't always that simple however, unfortunately there are a number of drivers on British roads that ( term assurance ) don't have any insurance, so the question is, what happens with your claim if you have an accident with an uninsured driver?
The 1988 Road Traffic Act, section 143 clearly states that all drivers on the UK roads must have insurance for the vehicle that they are driving. The point of the insurance is that if you have an accident and it is your fault, you have the means to cover the cost of the damage incurred by way of your insurance policy. It's a sad fact that ( life insurance adviser ) a significant minority of drivers choose not to bother with insurance, disregarding UK law and saving themselves hundreds of pounds a year as a consequence. Someone has to pay for these drivers though, and it's the people that do have insurance that foot the bill!
The Department of Transport estimates that as many as 5% of drivers are not insured on the vehicle which they are driving. Statistics also show that uninsured drivers are more likely to be involved in an accident. It's a growing trend and is proving very difficult to eradicate.
Click here for part 2
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