How does car insurance work?

Random

Right ... this may seem stupid but I'd like to confirm a few things about car insurance if I could...

Currently I'm a named driver on my parents insurance, so very little actual involvement with policys or anything for me.


How does one go about getting a quote? Do you need to pick a car and then ask how much it would cost? Or do you just give a type of car and they give a ballpark figure? Can this be done online? Via email? On the phone? In writing?

Is insurance generally a 12month contract thing, or can you drop it whenever?

If you make a claim on the insurance, your insurance costs after this go up? Are the increased costs based on your claim?

If you have an accident and claim insurance, is it possible to just cancel your insurance then? Or does a claim tie you into a further contract of sorts?

What's a no claims bonus and how does it apply?


Appreciate any feedback I can get, no doubt I'll have followups

jhegarty

you should be able to get a quote on a made up car here :

http://www.hiberniandirect.ie/direct/HibernianDirectWeb/homepage.jsp


or

http://www.quinn-direct.com/

BrianD3

Usually people get quotes over the phone then a proposal is sent out confirming the quote.You can also get a quote by calling into an insuracne office in person, by email or online. I have found that online quotes tend to be dearer than over the phone quotes.

If you choose to accept a quote you just pay them by credit card, cheque etc. and they give you a policy document, insurance cert and disc. They may require you to send them a photocopy of your driving licence and a photocopy of your vehicle registration cert (to prove that you own the car) They will probably give you a while to get these documents sent in and they will insure you in the meantime.

Also, you should get a letter from your parents insurance company stating that you were a named driver with them. Because you might get a discount for named driver experience when taking out your own insurance. Your insurance company will want to see proof of this experience i.e. the letter.

You can get a quote without owning a car. Just tell them what car you're intending to get. They'll probably ask you what engine size, model, year and an estimate of the cars value so have this info ready.

Insurance is generally for 12 months and can be paid for in instalments. Insurance can be cancelled and refunded at any time but you may get charged a penalty if you cancel. If you change insurers you must inform them of any claims you had with your previous insurer otherwise your insurance will be void.

Your insurance will go up the year following a claim. If you have no claims, you'll get an increased (up to a certain level) no claims discount the following year.

Random

Thanks for the info.


So, can I make a claim and then cancel the insurance?

What is a no claims discount?

"Your insurance will go up the year following a claim" - great, so it really is the money grabbing setup that it appears to be.... you have insurance so that you don't have to pay, and then they up the costs ... yes?

Capt'n Midnight

ciaranfo wrote:

So, can I make a claim and then cancel the insurance?

Kinda suspicious unless the car was a write off and you didn't replace it.

ciaranfo wrote:

What is a no claims discount?

After being insured in your own name you might be entitled to a discount if you haven't claimed. Someone will post how many years you need befroe this. Named driver time doesn't apply and the discount you've built up gets reset to zero if you miss two years insurance. If you share a car with someone then swap the policy and named driver every other year to keep the discount.

ciaranfo wrote:

"Your insurance will go up the year following a claim" - great, so it really is the money grabbing setup that it appears to be.... you have insurance so that you don't have to pay, and then they up the costs ... yes?

Yeah it is.
For small claims expect to pay it back in increased premiums over a few years.
For medium claims shop arround.
For big claims - there is no way you can pay a million to support a paraplegic or someone with brain damage and that's why insurance is mandatory.

When you cancel insurance or change it you don't get it all back. You can get money back if you pass your driving test ( £24 in my case :rolleyes: ) or if you change car to a lower risk one. You pay more if you change to a bigger one of course.

seamus

ciaranfo wrote:

So, can I make a claim and then cancel the insurance?

Yes and no. If you have paid in full up front, you can cancel your policy, but you're unlikely to receive any money back. If you're paying in instalments, you may be bound to pay the full amount upfront if you try to cancel the policy. It depends on eahc individual insurers.

What is a no claims discount?

For each full year that you are with an insurer, and do not make a claim on the policy, you will receive a discount or "Bonus" on your policy. Most insurers will give you a bonus up to maximum of five years, which usually amounts to around a 50% discount. If you (or someone else) make a claim on your policy, you lose the entire no claims bonus.
Depending on your insurer, you can buy certain protections, to ensure that if you do make a claim you don't lose your NCB, but of course these are extras which cost money. Some insurers also allow you to claim a certain maximum amount, or for things like windscreens, without affecting your no claims bonus.

"Your insurance will go up the year following a claim" - great, so it really is the money grabbing setup that it appears to be.... you have insurance so that you don't have to pay, and then they up the costs ... yes?

Yes, but statistically they are justified. Those who have had made a claim in the last five years are statistically more likely to make another this year. In general, you won't be penalised unless the amount is more than €2,000-€3,000 or you're in a high-risk group (i.e. young males).

Random

Re: No CLaims Discount
So, you make a claim and you loose it... is it gone, or simply reset?

Is it standard that you can drive anyone elses car and be insured in it? Extra I assume? Likewise with people driving your car ?


I'm a young male - as already I knew - ****. Maybe I'll get a wig for when I go try get a quote


How easy is it to "jump" insurance companies for better rates and what not?

Say, for example, I went out and got a quote tomorrow morning. I then bought a car at lunch, and finalised the quote in the evening. Can I drive it that evening? Or do I need to wait for something to come in the post?


Appreciate all your feedback so far.

Victor

Moved from Commuting / Transport to motors.

Stephen

You don't have to wait for the insurance cert/disc to come in the post - the policy is active from whatever time and date you agree with the insurance company. If you are stopped by the Gardaí without the insurance disc they will usually require you to produce it in the garda station within 10 days.

With regard to the no claims bonus, you don't "lose" it but it does get reset to zero. You can start building it up again from scratch with each year that follows.

You generally cannot get open drive insurance (i.e. you can drive any other car with the permission of the owner as long as they have it insured) unless you have a full licence and comprehensive insurance on your own car. Age restrictions may apply here too.

Litcagral

Stephen wrote:

You generally cannot get open drive insurance (i.e. you can drive any other car with the permission of the owner as long as they have it insured) unless you have a full licence and comprehensive insurance on your own car. Age restrictions may apply here too.

Also you are usually only covered on a third party basis when driving someone else's car even if both of you are comprehensively insured.

(generally required to be over 25yoa)

seamus

ciaranfo wrote:

Say, for example, I went out and got a quote tomorrow morning. I then bought a car at lunch, and finalised the quote in the evening. Can I drive it that evening? Or do I need to wait for something to come in the post?

That's pretty much what I did. I had the car half bought, but sitting in the garage. I bought my insurance online by credit card, then rang Hibernian to confirm that cover was in place. After work, I went down to the Garage, paid them the balance and drove home.

Random

I appreciate the comments so far.... I'm compiling my next volley of questions at the moment

If anyone feels I've missed anything out in relation to car insurance ... or has any advice .. please feel free to post it

Random

Also...

Here's the example. My mam has a car. I'm a named driver on it. If I buy a car, can I be a named driver on her insurance but in my own car (if I bought one) ?

Capt'n Midnight

It would be prohibitive for your mum to get insurance on two cars. And if you were insured on your own car then many policies would cover you on someone elses, so you wouldn't need to be an named driver on hers saving a few quid.

stevenmu

Stephen wrote:

With regard to the no claims bonus, you don't "lose" it but it does get reset to zero. You can start building it up again from scratch with each year that follows.

Don't some companies make you wait 5 years before you can start building up your NCB again ? Also so companies won't quote you or will give you a ridiculously high price if you've had a claim in the last 5 years, essentially forcing you to stay with the company you're already with.

seamus

stevenmu wrote:

Don't some companies make you wait 5 years before you can start building up your NCB again ?

Not something I've ever heard of. Though IIRC, you can only start building up your NCB from the start of the next policy after the claim is settled. So, if it rolls over into a new policy or you're waiting for court time for years, you're without an NCB for that period.