At Facts About Insurance, we aim to answer all those questions our readers and site visitors struggle to find answers to.
Can Modified Cars or Classic cars be insured?
Yes, modified cars can be insured. Keep in mind that the car may now be termed as a Specialist car and you’ll have to shop around for Insurance Companies that handle insurance for Modified Cars or Classic cars.
The reason that not all Insurance Companies cover Specialist cars, is that replacement parts and skilled labour is expensive and not freely available.
The best advice is that you should find a local insurance company that insure modified and classic cars at an affordable rate.
How can I cut down my car insurance premium?
The following suggestions may cause a reduced car insurance premium:
- Overnight Parking: Park your car in a locked garage
- Anti-theft Devices: Fit approved anti-theft locks and a car alarm
- Older cars: Third Party, Fire & Theft cover is suitable for older cars and much more affordable than comprehensive insurance
- Discounts: Find out if your insurer offers discount on distance traveled, age, gender and general area of travel
- Defensive Driving Course: Many Insurance Companies offer reduced rates if drivers have completed and passed a Certified Driving Course. This applies to younger drivers especially.
What does ‘excess‘ mean?
The term “excess” refers to the amount payable by you in case of the loss of or damage to your car. If the accident was not caused by you, you may be eligible to reclaim the excess payment by making use of legal cover. Most Car Insurance Companies offer Legal Cover as a no-cost benefit or as an additional low-cost option to their clients. There are two kinds of excess payments: Compulsory and Voluntary.
Compulsory Excess:Young drivers are usually burdened with Compulsory excess, due to alledgedly being high-risk drivers. This reflects the fact that young drivers are generally inexperienced drivers and may speed excessively.
Voluntary Excess:Voluntary excess refers to the amount you agree to pay the insurance company and may offer a discount on your car insurance premium.
What is legal cover?
Legal cover provides policy holders with expert advice regardig recovery of uninsured losses. These losses include loss of income, medical costs and recovering of excess payments if the accident was caused by the other party.
Most Insurance Companies provide Legal Cover either as a benefit included in the policy or as a low-cost added option.
Can an insurance company cancel my car insurance policy?
Yes, Insurance Companies can cancel your car insurance policy if they have a legitimate reason. However, they have to provide you with a written notice of the cancellation date and the reason for cancellation.
Reasons for Cancellation of Car Insurance Policies:
- Non-payment of car insurance premium/s
- High-Risk driver behaviour, resulting in a high volume accidents and claims
- Fraud or misrepresentation, referring to misleading information on the application form
- Fraud regarding claims
Rather be honest, drive safely and stay insured!