Frequently asked questions

1. I was completely innocent in the road accident that smashed up my car. How come I now have to lose my no claim discount?
This is a common misunderstanding. Insurance policies offer a no CLAIM bonus, not a no- blame bonus. If you make a claim of any kind on your policy your insurers are entitled to reduce the amount of discount you get. If you can get the guilty party (or their insurers) to reimburse your insurance company for all they have paid, you may be able to get your bonus reinstated. The important thing to remember is, if you claim on your policy your bonus could be reduced. Blame is not taken into account.

An accident may not only affect your no claims bonus, it could also leave you out of pocket. You may for instance have to pay a policy excess, hire car charges or other additional travelling expenses. You may even find yourself unable to work and claim earnings. Costs such as these are not covered under your insurance policy. They are known as Uninsured Losses. If the accident is not your fault, it is possible to recover any incurred costs from the negligent party if you have opted to add a legal assistance package to your insurance policy. Your broker will be able to provide further details.

2. Does my motor policy cover me for driving abroad?
All UK motor policies provide the minimum cover required by law in other European Union countries or the minimum cover required by UK law if that is greater. This cover does not automatically include theft or damage to your car and it may not completely cover your liability to other people. If you tell your insurers in advance, they can extend your UK level of cover to most holiday destinations. Your insurers can also supply a Green Card. This is recognised internationally as evidence that you have insurance that meets local law.

3. Some tiles have blown off my neighbour's house and smashed up my car. Surely it must be the neighbour's responsibility to pay up for the damage?
This is more a legal question than an insurance one! If you want to get your neighbour to pay for the damage you will have to prove that he/she was actually responsible for what happened. It is not enough that they owned the tile. As this is a legal question you should consult a legal adviser to see how successful you are likely to be if you sue them. If you don't want the hassle of trying to get the money off your neighbour and you have comprehensive motor insurance you might like to claim on your own policy - but read the answer to the question about no claim bonuses before you do!!

If however you have opted to pay for legal expenses cover in addition to your motor insurance policy then a solicitor will be appointed to pursue the claim on your behalf. Your insurance broker can provide you with further details.

4. Why should I pay exorbitant rates, just because I cancelled my motor policy after a couple of months?
Most insurance policies are designed to run for 12 months. The premium you pay is for the full year. If you cancel in the middle, strictly speaking you are breaking your agreement to insure. If you do cancel, there are still a lot of costs that have to be paid for (like policy documents, administration, commission for the person who sold it etc). These costs have to be paid no matter how long the policy runs, so often the amount of any refund is quite small.

5. I paid hundreds of pounds more for my car than the insurance company is offering now it has been written off. Why is this?
The insurance company will pay you the value of your car at the time of the accident. All car values deteriorate from the moment they leave the showroom. If you are unhappy with the value being offered for your car, after it has been written off, send the insurers any proof you have - like adverts for similar vehicles or the appropriate pages of price guides. If you think it's worth it, you could get an independent engineer to look at the wreckage and give you an estimate of its pre-accident value. You will have to pay the engineer's fees, but if this means you get a bigger insurance payout it might be worth it.