Continuing into the other options available from insurers are the following choices. Be sure to read the small print before committing to any policy as there are always differences between companies, even if they are small.
Pay as you Go insurance:
This type of insurance is a very new concept and is currently not offered by all the insurance companies out there, but is certainly proving to be popular with those who drive rarely or mostly at night. The idea is pretty straight forward – you pay only for when you drive your car! You will have a GPS receiver signal placed within your car which will be able to see where you are driving, what type of road you are on and what time of day it is. So of course if you are driving down the motorway at three at the morning you will be paying less than if you where doing so at five in the afternoon on a Thursday commute home.
Grey Car Import Insurance:
This insurance is for those who wish to drive a car within the United Kingdom that was not intended to be driven here, and has no “equivalent” which is. They are usually very specific or highly unusual road cars, so if you have any concerns that your vehicle may need special insurance be sure you check it out before opting for regular policies – you may not be covered at all!
Short Term / Temporary Car Insurance:
This is ideal for those who have recently passed their driving test and have not taken out a full policy yet. If you have your own car and wish to drive it right away, by taking out short term insurance you are able to drive legally for anytime up to a month. This will allow you to use your car while searching for the perfect policy.
This type of insurance is also great if you have to lend out your car to a friend or co worker. If they take out a policy for the specific amount of time they need to use the vehicle it will not be expensive but will protect your no claims bonus for damage!
By: Jennifer Quirk
Posts Tagged ‘Jargon’
Car Insurance Jargon Un-Muddled Part 2
November 12th, 2009Understanding Auto Insurance Jargon
November 3rd, 2009
When reading through an auto insurance policy, it can seem almost impossible to understand. This is because there are various words that we do not use in our everyday language. Actually, those words are not really used outside of the insurance industry or outside of a conversation involving insurance. If you don’t have an understanding of those words, then it can seem as if someone is speaking a foreign language to you. That is why you should learn some of the insurance jargon that is thrown around because insurance happens to be a large part of your life.
Without insurance, you do not have any type of protection in case you are in a car accident. If you don’t have protection, then you can be sued. Being sued means you’ll have to pay for any damages sustained in an accident if the accident was your fault. Even if the accident wasn’t your fault, you still have to worry about your medical bills, replacing your car and the medical expenses of anyone in the car with you. This in itself makes it obvious why auto insurance is a necessity. Luckily, states mandate that people must have a minimum amount of auto insurance.
Basic terms
There are really only five basic terms that you need to know when talking about car insurance. Those terms are:
- Liability coverage
- Physical damage coverage
- Medical coverage
- Emergency assistance coverage
- Unattached equipment coverage
A few of these may look a bit familiar to you, but there are a couple of them may not. We frequently hear the terms liability coverage, physical damage coverage, and medical coverage when talking about car insurance and reading our policies. What we don’t hear much of is emergency assistance coverage and unattached equipment coverage. These are, of course, not as important as the other aspects of your coverage, but that does not mean that they should be ignored since they are great add-ons to your policy.
The most common of the terms you will hear is liability coverage. Liability coverage is the part of your policy that covers damages caused by you in the case of an accident. You should always make sure this coverage is enough to cover damages. If not, then you may have to pay an out of pocket expense to the person who was the victim in the crash. Medical coverage covers you and any passengers within your vehicle as a result of a crash. Physical damage coverage will help you repair or replace your vehicle.
As for the two terms that are a bit different, emergency assistance coverage is like a type of roadside assistance. Adding this to your plan provides you with tow service so that you’re not stranded on a highway in unfamiliar territory. Lastly, unattached equipment coverage provides coverage for that equipment that is not a permanent attachment to your car. That may include something such as a satellite radio system. If you have expensive attachments on your car, you want to make sure that you insure those as well so that you don’t have to pay for their replacement or can have those items repaired by your insurance.
Having an understanding
Knowing these terms is the first step in understanding some of the confusing but important terms that you will see and hear. If you don’t understand them, you cannot understand what type of home and car insurance coverage you have or even how it works. Knowing how it works helps you determine if what you have is adequate enough for your particular needs.
By: Amy Nutt