How to make a claim if your car has been stolen

If your car has been stolen, tell your insurer and the police immediately. Your
insurer will wait a few weeks before settling your claim to allow time for the car
to be found. Check your policy to see whether it covers the cost of hiring
another car during this time. If you were paying your premium by instalments,
you may have to carry on paying, even though you have no vehicle to insure.
If your car is found after your claim has been settled, it will belong to your
insurer. If your car is not found, your insurer will offer to pay you the market
value of the car, which is the amount you could have sold it for before it was
stolen. This payment may bring your policy to an end, depending on the
policy. You will not have the rest of your premium refunded, unless this is
included in your policy. If you are not satisfied with the offer, try to get
evidence that the car is worth more, by using car price guides or prices of
similar vehicles in local papers. If your negotiations fail, you may wish to take
further action. For information on how to take further action, see How to make
a complaint in this fact sheet.

When you may not be covered by your insurance

You may not be covered by your insurance if:-

• someone else, who is not included in your insurance policy, drives
your car
• your car is found to be unroadworthy. Third party claims should
still be accepted
• you have bought a stolen vehicle, even if you did not know it was
stolen when you bought it. Third party claims should still be
accepted
• you are driving someone else's vehicle
• you do not have a valid driving licence. Third party claims should
still be accepted
• your insurer believes that you have been partly to blame for an
accident, it may only pay part of your claim
• your insurance does not cover all your losses, for example time off
work, personal injuries, vehicle hire, or excesses . You may be able
to claim these expenses from the other driver, but you may have to
go to court and may need legal advice
• your insurer has gone out of business and is unable to meet their
claims You may be able to get compensation from the Financial
Services Compensation Scheme (FSCS). Contact the FSCS on:
020 7892 7300. If your insurer is a member of Lloyds, contact the
Lloyds' complaints department on: 020 7327 5693.

Choosing motor insurance

Before you buy motor insurance, decide who will be driving your car, and how
much cover you would like. There are three main types of motor insurance:

Third party insurance
This is the minimum amount of insurance cover that you must have by law for
your vehicle. Third party insurance only covers you for damage to someone
else's vehicle or property, or injury to someone else in an accident which
involves your car. This includes accidents caused by your passenger. If your
vehicle is damaged in the accident you will have to pay for the repairs
yourself.

Third party, fire and theft insurance
This includes third party cover and, additionally, damage to or loss of your car
by fire or theft.

Comprehensive insurance
This includes third party, fire and theft insurance. In addition, it will also pay for
repairs to your car. There is a range of extra cover that some policies provide,
including:
• cover for your own death or injury, or that of your partner or other
member of your family, up to a limited amount
• cover for your personal belongings if they are stolen from your
vehicle or damaged
• cover for your medical and legal expenses
• hiring a replacement vehicle.

The cost of an insurance policy is called a 'premium'. Ask for quotes from
several insurers to help you to get the best deal for your circumstances. You
will need to compare:
• what each policy covers, and any exclusions (risks which are
specifically excluded, for example, allowing drivers under 21 to drive
your car)
• the amount of any excess. This is the first amount of any claim, for
example the first £50, that you will have to pay yourself. Some
policies allow you to pay a higher excess in return for a cheaper
premium. Most young drivers (under 21 or 25 depending on the
policy), and inexperienced drivers are expected to pay a
compulsory excess which is higher than usual
• discounts offered, for example a 10% discount for older drivers
• the no claims bonus which increases for every year that no claims
are made on your policy, up to a maximum amount. Most insurers
will let you transfer the discount, if you want to change your insurer.
You will also need to compare the amount by which your no claims
bonus would be reduced if you made a claim
• any policy restrictions, for example, only named drivers are
covered.

Why Do I Need Car Insurance?

Simple: because driving without car insurance is illegal. But there is more to this. Car insurance protects you, financially, if something bad happens. While car insurance can be one of the most costly parts of owning a car - it is also one of the most important!

But be aware - not all car insurance is the same. Depending on your coverage, you may or may not be protected from the different problems that may
arise. Unfortunately,many people don’t fully understand what their car insurance pays for until they are stuck with thousands of dollars of uncovered expenses.

Chapter Of Insurance Vehicles

 Understand the basics of auto insurance and types of coverage.
 Understand the minimum requirements for insurance and the penalty for
driving without it.
 Identify how much insurance you need.
 Determine what options are available to increase your insurance protection.
 Shop for insurance, and ask the right questions when getting quotes.