Insurance Traps

Car insurance is basically a legal requirement & it can be quite expensive if you happen to fall into any one of the cars insurance traps which are set by some insurance providers. Some seemingly minor clauses and caveats which are buried deep in small print of car insurance policies basically spell out the difference between the bad policies and the good policies. Being forewarned is being forearmed. The following are the cars insurance traps you should avoid:

-Is this a “family-policy” or a “named insured only” policy?
A family policy will cover the drivers of both news and used cars in Northern Ireland who are in the homestead and all those they lend the car/cars to, while the “named insured only” policy will only cover the driver who is explicitly named-on the policy. A family policy cost about 10 percent to 15 percent more depending on several factors, which include the driving-records of any one of the drivers at home. But they’re a great choice if the vehicle will ever be driven by anyone else other-than the policyholder. Most car owners don’t realize that they’ve the named insured only policies, and then they lend the cars to family and friends unaware they may not be covered in-case an accident occurs.

-Do I’ve the right to choose my own repair-facilities and select original equipment manufacturer (abbreviated as OEM) parts in this policy? Many insurance companies have re-worded some car insurance contracts so as to limit the car owners’ repair choices after an accident. Using certain aftermarket parts (that is, parts which are not made-by the car’s manufacturer) in your car may void its’ warranty.

-Does the car insurance policy include an appraisal clause?
The clause typically allows the policyholder(s) to get an-appraisal if the car insurance company provides less for the totaled car than the policy-holder believes it’s worth.

-Does the “Limits-of-Liability” section of your contract contain a phrase saying “as defined-by us”?
This section-of your car insurance policy basically sets limits on just how much you the insurer, will-pay. It may say that you’ll pay “no more-than the prevailing-per-hour labor rate of the repair shops in your region/location,” or “no-more-than a certain competitive estimate of the repair costs.”

-Assuming all the policies will cover European driving
Many people take their vehicles abroad every year, but it’s not all the insurers who include European-cover in the policies. This may leave you high & dry if you’ve an accident while you are abroad. Carefully check the small-print of the policy before you leave UK shores and, if you happen to be in doubt, check and confirm with your insurance provider. Find Car Insurance Belfast or compare car insurance in NI.