Knowing About Car Insurance – The Fine Print
Putting your signature on any document makes it legally binding, and so reading the fine print is always a necessary thing to do. Most of us find this exercise tedious, if not outright boring, but when you are buying car insurance, it is vitally important to know exactly what you are covered for, or not, as the case may be.
In the event of an accident of any kind, the insurance company will go through the policy with a fine toothed comb. It therefore makes excellent sense that you have done this already and understood thoroughly what you have signed for. Read all questions asked carefully and answer them truthfully and exactly, because it is very easy for misconceptions to creep in.
Let’s look at a few examples:
Question: Is the car always garaged in your home? Answer: Yes
If you do not have a garage, and your car is stolen from the street outside your house, then in that unfortunate event, your policy will be invalid and you will have no access to a claim.
Question: Have you ever had a conviction? Answer: No
This question needs to be answered truthfully, because you could have an accident that may then land you in court. Now if it is revealed that you have had a previous conviction, then it is well within the right of the insurance company to refuse to pay any claims. This could prove very expensive in the event of an injury claim.
Check the fine print carefully to see if you are covered for an accident occurring when you happen to be driving “under the influence”, even if the fault is definitely not yours.
Another thing you must look at is third party liability. One alternative is Third Party, Fire & Theft Car Insurance. This covers injury to body and property, but only in the event of fire, theft or attempted theft. Also, read the fine print to see if it covers you in the event that the accident was your fault. If not, you could very well find yourself in the middle of a litigation that involves millions of pounds.
At a slightly extra cost, you could just go for the comprehensive cover. This could turn out to be a wise decision, because you can never predict what form an accident will take, but at least you will be prepared – and covered!