myth: modified car insurance is hard to find

So you've just added a supercharger, hydraulic suspension, racing spoiler, and custom paint job to your 1994 Honda Civic and now you're wondering where you're going to get car insurance. Like many modified car buffs, you might think finding modified car insurance is going to be a chore. We're here to tell you it's a lot easier than you think.
Many drivers think that insuring a modified car is going to be difficult. After all, the speed-enhancing modifications many car buffs go for are the stuff of actuarial nightmare. In fact, many car insurance companies simply refuse to underwrite modified cars.
Despite this fact, finding affordable modified car insurance is no harder than finding any other kind of car insurance. Sure, it might take a bit of homework, a little shopping around on the Internet, and a phone call or 2, but finding the right coverage at the right price can be a snap.
And we're about to make it that much easier.

Find affordable modified car insurance with Esurance

While many car insurance companies balk at the thought of insuring your street rod, lowrider, or tuner, Esurance makes it easy to get the financial protection you need with not one, but 2 easy options.

Option A: Customized parts and equipment coverage

Whether you're in the market for new modified car insurance, looking to switch providers, or are an existing Esurance policyholder making your first forays into the world of car modification, we can help you insure your modified ride.
Esurance car insurance policies can include up to $4,000 dollars of customized parts and equipment coverage to pay for damage to or replacement of any of the following:

• Stereo, sound reproducing, sound recording, and television equipment
• Radios, citizens band radios, and scanners
• Personal computers, Internet access, and navigation systems
• Telephones, televisions, and video entertainment systems
• Body, engine, exhaust, or suspension enhancers
• Winches, anti-roll, or anti-sway bars
• Custom grilles, louvers, side pipes, hood scoops, or spoilers
• Custom wheels, tires, or spinners
• Custom chrome and paint
• Special carpeting or insulation
• Furniture or bars
• Height-extending roofs
• Custom murals, paintings, or other decals or graphics

If you have or plan to add features not listed here, call us at 1-800-ESURANCE
(1-800-378-7262) to see how we can help.
Note that a standard Esurance car insurance policy only covers original equipment included by the manufacturer. If you've made any modifications or additions to your car, be it as grandiose as a Lord of the Rings mural on the side of your sleeper van or as modest as a GPS, be sure to add customized parts and equipment coverage to protect your favorite additions. In some states, you'll need to buy comprehensive and collision coverages in order to get customized parts and equipment coverage.
Serious modification buffs out there might be thinking, "$4,000?! That barely covers the custom Jack Skellington paint job on my modified hearse!"
Rest easy, buff. We've got another solution for you.

Option B: Modified car insurance through our partner, Hagerty

Esurance offers another car insurance solution to avid modifiers: collector car insurance through our trusted partner and collector car world mainstay, Hagerty.
Now, when many of us think "collector car," chances are we see Model Ts, '57 Chevys, and 1970 Dodge Challengers. But collector car insurance provides an ideal solution for insuring all kinds of vehicles, from Brass Era classics to, yes, even your modified Honda Civic (believe it or not, the Honda Civic is one of the most popular cars to modify, which may help explain why it's also one of the most-stolen cars on the road).
Collector car insurance through Hagerty is surprisingly affordable. Hagerty clients report savings of as much as 37 percent when switching. And there are no limits on modifications or how much you drive, though modified vehicles are carefully underwritten and extent of use plays a role in determining your rate.
Hagerty considers a vehicle to be modified when the performance has been significantly increased; the body, chassis, and/or frame have been structurally altered; or a custom paint job is valued at more than $10,000.
If any of the above fit your situation, you can get your collector car insurance quote online. Or, if you've got more questions, check out our collector car insurance FAQs.

Why do people think modified car insurance is hard to find?

This myth stems from common (mis)conceptions about the types of people who modify their cars as well as from the types of modifications most people go for.
There's more to modified cars than what we see in The Fast and the Furious. Obviously, these are the types of cars that give actuaries the heebie-jeebies. But the vast majority of modified car enthusiasts are simply hobbyists with a love of high-performance engines, elaborate paint jobs, and shining chrome finishes.
Many of the modifications typically chosen are designed to optimize vehicle speed and performance. Modifications like superchargers, turbochargers, and nitrous oxide injection systems are all designed to amplify engine power, performance, and speed. And it's a natural, if unfortunate, reaction to think that those looking for more speed and power are looking to drive recklessly. However, one doesn't have to speed to enjoy the idea of it. If that were the case, we wouldn't have automobiles capable of topping 250 mph (such as the Bugatti Veyron 16.4).
Whatever the stereotypes are, the fact is that most car modifiers take extremely good care of their cars. Low mileages, top-of-the-line garaging, and more-than-regular maintenance come standard for these hobbyists. Because they've spent thousands to create the car of their dreams, they're not likely to risk losing that investment to reckless driving.

Modified car insurance made easy

If you're a modest modifier or are just starting out, car insurance from Esurance can provide just what you need. Just get your quote, and be sure to add the appropriate limits for customized parts and equipment coverage. And if you're a more ambitious customizer, we'll be happy to help you get the coverage you need from our partner, Hagerty

How to Get the Most for Your Money: 11 Ways to Save Money on Your Car Insurance...

So you’re shopping around for auto insurance. What do you need to know? Well, there are lots of ways – at least 11 – that you can save money. Many of these money-saving ideas may apply to you.

1. One Insurer, Multiple Policies – Do you have a homeowners or renters insurance policy? If so, is it with the same insurance company that provides your auto insurance? If the answer is no, you’re paying too much – for both policies. Almost every insurance company that sells auto insurance wants its policyholders to also buy homeowners or renters insurance from that company.
   
   These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.
   
   Tip.  Talk to your agent about multi-policy discounts.
2. Good Driver, Good Price – It’s no secret that the better your driving record, the less you will pay for auto insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however.
   
   Many auto insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies.
   
   These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?
   
   The usual reason is that they don’t know any better. No one told them which insurance company in the group had the best prices. And, odds are, no one even told them there was a group of insurance companies. If you have a spotless driving record, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.
   
   * Tip.  Make sure you’re getting the best discount for your driving record.  Talk to your agent.  And remember, be a safe driver.  It will save you money.
3. The Beauty of the Bus (or Other Mass Transit) – Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.
   
   * Tip.   Some drivers should consider mass transit. Yes, there’s a price there, too. But you will reap the savings of gas and lower insurance costs.
4. Low Mileage, Low Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.
   
   * Tip.   If you drive less than the average, you could be eligible for low-mileage discounts, which some insurers offer.
5. High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.
   
   * Note.  To get detailed information on your vehicle(s) – or a vehicle you’re thinking of buying – write to the Insurance Institute for Highway Safety at 1005 North Glebe Rd., Arlington, VA 22201 and ask for the “Highway Loss Data Chart.”
6. Raise Your Deductible – The deductible is the amount you pay before insurance kicks in if you have a claim. For example, if you have a $250 deductible and you have an accident in which your car sustains $1,000 in damage, you pay the first $250 and your insurer pays the balance, $750. The lower the deductible you choose, the more you pay in premiums. If you have assets, you can probably afford to absorb at least $250 - $500 if you have a claim.
   
   * Tip.  If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.
7. Drop Unnecessary Coverages – Let’s say you have an older car, one not worth very much. There’s really little point in having collision and comprehensive coverages. You don’t have much to protect. Remember, too, that you have to subtract your deductible from any potential payout you might get.
   
   * Tip.  As a general rule, any car worth less than $1,000 shouldn’t have collision and comprehensive coverage. Between the deductible and the extra expense of these coverages, the cost is probably greater than the benefit. How much is your car worth? An auto dealer can tell you, or there are plenty of books that have values of vehicles going back many, many years.
8. Discounts, Discounts, Discounts – Auto insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.
   * Tip.  Make sure you are taking advantage of all the discounts available to you!
9. Taking the Defensive – Many insurance companies also offer discounts to those who have recently taken defensive driving courses.
10. Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.
    
    * Fact.  Rates can vary greatly from state to state. If you’re living in New Jersey, Massachusetts or Hawaii, you’re paying several times more, on average, than you might in North Dakota, South Dakota or Idaho.
11. Credit Where Credit Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies.

* Fact. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor. Many insurers do not use credit as a factor.

* Tip.  Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.

Personal Car for Business, Company Car for Personal Use

Do you use your personal car for business? Do you have access to a company car? If the answer to either question is yes, you could have potential coverage gaps.

* Example. Let's say you use your personal car for business. It's possible your employer is providing some coverage for you through your employer's commercial auto policy. Some coverage. In most cases the coverage is for liability only, and often this commercial auto policy doesn't even apply until the limits on your personal auto policy are exhausted. (This is what insurance people call "excess" coverage.)

* Tip. You should talk to your employer about what, if any, coverage is available to you through the company's commercial auto policy. That way, if you have an accident while on company business, you know who (or which insurance company) to call.

If you use your personal car for regular business purposes - trips, visiting clients, etc. - your personal auto policy probably provides enough coverage for these activities. (Assuming you have "enough" coverage to begin with.)
But what if your car is actually a source of revenue? You make deliveries, for example. In that case, you likely need a commercial auto policy as well.

* Note. If you have an accident while delivering a product or using your car as a taxi, your personal auto insurer may deny your claim. Talk to your agent to make sure you have coverage for all the business activities for which you use your car.

What about company cars? They can be an insurance problem, if you use the company car for business and pleasure, particularly if you don't have a car of your own. If you don't have a car, you probably don't have a personal auto policy. If you don't have a car (or personal auto coverage) and use a company vehicle for pleasure, you are inviting disaster if you have an accident during a pleasure trip.

* Tip. If you are in this situation, you should have what is called a non-owned personal auto policy.

Such a policy can also come in handy if you don't have a car and you rent a vehicle on a trip. Your non-owned auto policy will cover you and your rental car if you have an accident. Otherwise, you would probably need to buy coverage from the rental car company, coverage that is very, very expensive.

* Tip. You can have coverage gaps even if you have a personal auto policy and use a company car for pleasure or if your spouse or children use the company car for pleasure. Find out from your employer the extent of coverage that is available for your corporate car. Once you know the extent, talk to your insurance agent about any additional coverage you might need.

Who is covered in auto insurance policy

All the coverages in your auto policy apply when you are driving, but they also apply when other people are driving your vehicle. The coverages are actually for the car, not the person.

* Note. If someone is going to be a regular user of your car, that person's name needs to be added to the policy.

Your insurance company wants to know who's going to be using the car. After all, you could be a great driver with no tickets or accidents, but your spouse, your teenage child, or your reckless cousin could be a lousy driver.
If you let these people drive your car without telling your insurer and these people keep getting in accidents, your insurance company isn't going to be happy. In fact, they may cancel your policy.

* Tip. It's not wise to risk losing your policy by failing to disclose who's driving the insured vehicle. Keep in mind, however, that if you add drivers with lousy records or who haven't had much driving experience, your premiums will go up.

Any parent of a driving teenager can tell you this; teenagers are notorious for getting tickets and having accidents. They are also very inexperienced drivers. As such, when your child gets his or her license, your insurance premiums will go up when he or she is added to the policy.
If you buy all six of the major auto insurance coverages, your policy will cover you in most instances in which you cause damage or injury to your car, yourself and your passengers, or drivers and passengers in other vehicles.
But not all.

* Note. The standard auto insurance policy has some "exclusions," which is insurance-ese for, "We won't cover that." Here are some examples where your auto policy won't provide coverage:

• If you intentionally try to cause damage to your car or another vehicle. This includes liability coverage.
• If you are using the vehicle to transport other people for a fee. (This does not apply to car pools where the expenses are shared.)
• If you are using the vehicle for certain business activities. This does not include traveling to see clients or taking a standard business trip.
• If your vehicle sustains damage caused by normal wear and tear, freezing, mechanical or electrical breakdown, or road damage to tires.
• If your car is damaged because of radioactive contamination, intentional or accidental discharge of nuclear weapons, war, insurrection, rebellion or revolution.

Little Known Fact: There Are Six Distinct Coverages in car insurancePolicy

Auto insurance is a product with six distinct coverages.
Let's look at them here:

1. Bodily Injury Liability - This pays the medical and other expenses of those people injured or even killed in accidents you cause. This is required by most states, usually with a minimum coverage of $15,000 for any person involved in an accident with you and no more than $30,000 for all the persons in the accident.
2. Property Damage Liability - This covers the damage your car causes to property. Usually, that's the other car or cars involved in the accident, but it also covers damage you do to any object you hit; garages, buildings, lampposts, fences, whatever. This is also required in most states, usually with a minimum coverage of $5,000.
3. Collision - This is for damage done to your car when it collides with other vehicles (your fault) or other objects (again, your fault).
4. Comprehensive - This covers damage to your car resulting from something other than a collision with another vehicle. For example, damage caused by vandals or a wind-blown tree hitting your car. It also includes coverage for theft.
5. Medical Payments - This pays medical, and even funeral, expenses for you as well as members of your family and passengers in your car if it is involved in a collision, regardless of who caused the accident. It also covers you as a pedestrian if a vehicle hits you.
6. Uninsured/Underinsured Motorist - This pays for injuries to you and, in some policies, damage to your car if you are hit by a driver who doesn't have insurance - or by someone who doesn't have enough insurance to cover your losses. In most states, more than 10% of motorists don't have any insurance. In some states, as many as three out of 10 drivers don't have coverage.

Many of those who do have insurance don't have enough to cover the damages and injuries that would result in a major collision. If you don't have this coverage, which is often referred to as UM/UIM, you are taking a risk. UM/UIM also provides coverage for any injuries you suffer if you are hit while walking or riding a bicycle by a driver with inadequate or no insurance.

Five common car insurance complaints

The Financial Ombudsman receives thousands of complaints every year from disgruntled motorists unhappy their car insurance provider has rejected their claim. We detail common gripes – and how to avoid finding yourself in a similar situation.
With the rising price of car insurance, shopping around for the best deals is practically a rite of passage for motorists.
But every year thousands of policyholders end up in dispute with their car insurer.
When this happens and the insurer and policyholder are unable to come to an agreement, the Financial Ombudsman Service (FOS) is the motorists' port of call as it deals with financial services complaints, including insurance.
Between April 2010 and April 2011 the FOS received 5,784 complaints about motor insurance - an increase of 6 per cent on the previous year.
But in an ideal world motorists wouldn’t have to complain in the first place. So here are the five most common car insurance complaints so you can avoid them.

Quality of repairs

The FOS says a sizeable number of car insurance complaints concerns the quality of repairs carried out following an accident.
When you’re selecting your insurer have a look to see how long they guarantee the repairs for as it does vary. 
The FOS says generally, if your policy says that the insurer will arrange the repair, it is responsible for the quality of the work.
But if your policy simply offers to reimburse you for the cost of the repair and you arrange that repair then the insurer is not responsible for any failings in the quality of work undertaken.
So it’s important to read through the small print of the policy document so you are familiar with who is responsible for carrying out repairs – you or the insurer.
It’s worth noting that some insurers will insist you go to one of their approved repairers, or if you choose to go elsewhere, will only pay up to the cost they would have been charged by the approved repairer.

Valuations

The FOS regularly deals with complaints from people who believe their insurer has given a low valuation for their car or motorbike.
The problem usually arises after a vehicle has been so badly damaged in an accident that the insurer decides it is a "total loss" - popularly known as a "write-off" - and not worth repairing.
In such cases, the motorist is entitled to receive an amount equal to the vehicle’s market value immediately before it was damaged – not what the car was originally worth.
This is a common misunderstanding by motorists, says the FOS.
However, you can protect this shortfall with a product known as GAP insurance. It covers the difference between the value of the vehicle before it was damaged and its value at the time you bought GAP cover.
You may want to take out this cover if you paid a lot for your vehicle for example, or to cover the finance payments for your car in the event of an accident. Find out more out how GAP insurance works.
If you think your insurer has provided a low valuation offer, you can challenge it. Here’s a step-by-step guide.

Claims rejected for 'non-disclosure'

Sometimes an insurer will refuse to pay a claim because it says the consumer failed to disclose that the vehicle had been modified.
So before taking out any policy, make sure you’re upfront about any modifications to your motor.
If you’re unsure what constitutes a modification, clarify this with the insurer before going ahead and purchasing the policy and make a note of the conversation.
The FOS says: “In such cases we look at what questions the insurer asked at the time the consumer applied for the policy to try to establish whether there had been any modifications to a vehicle.
“We will also consider whether any non-disclosure on the part of the consumer was material to the claim and the extent to which the non-disclosure was deliberate, reckless or inadvertent.”

Problems at renewal

Policies are often renewed without any specific questions being asked of customers other than credit card details, says the FOS. This could lead to any future claims on policies being refused.
However, if an insurer wants to reject a claim on the grounds of a customer’s failure to disclose information, then it should be able to show that it asked the customer clear questions when they renewed the policy.
But policyholders are also expected to be upfront about changes to their circumstances, such as driving convictions.
Commonly, what you should tell your insurer, and when, will be in the policy booklet issued when you buy cover.
Don’t end up like one FOS complainant who had his claim for car theft turned down when the insurer found out that before renewal, he had been convicted of a drink driving offence but had failed to disclose it.
The customer, a Mr J, turned to the FOS, but after investigation it also rejected his complaint.
The FOS says: “We thought that any driver would know their insurer would consider the conviction and disqualification highly significant and would realise they had to disclose this when renewing their insurance.
“So we decided that in this particular case the firm acted reasonably in cancelling the insurance from the date of renewal.”

Difficulties with no-claims bonus

Each insurance company sets its own rules for how a no-claims bonus is applied. But these rules should be clearly explained to customers at the outset, says the FOS.
Martyn James, FOS spokesman, says: “Where we often see complaints in this area is when consumers’ feel insurance companies aren’t abiding by their own rules for applying a no claims bonus.
“So a motorist will think they have a certain amount of no-claims bonus but when they move to another insurance company, it turns out to be less than they thought.
“This can result in a financial loss for the motorist as the new insurer based the given premium on the amount of no-claims bonus stated.”
Details of how much no-claims bonus you have will be on the renewal notice issued by your current insurer.
Also, named drivers can build up no-claims bonus but often this only applies if the named driver goes on to take out a policy with that same insurer.
Motorists should check with their insurer to find out how it applies named driver no-claims bonus before shopping around for a new deal.

How to get your car insurance application right

Don’t be overwhelmed by car insurance application forms - our quick guide shows you how to make the car insurance application process run smoothly by simply gathering the following documents to hand:

Driver’s licence - yours and any additional drivers’

You will be asked for the type of licence, and if you and any named drivers have had any motoring convictions, such as speeding points, in the last five years.

Bank statement

This will give you easy access to your account information if you’re planning to pay by direct debit or...

Debit or credit card (if planning to pay by card)

Last year’s insurance certificate and any paperwork relating to previous claims in the last five years

You will be asked for information of any motoring convictions (points and so on) and keeping last year’s quote to hand will give you a good starting point in terms of comparing quotes.

Your car’s logbook

This will provide the car’s make, model, registration year and so on. If you have modified your car in any way, this will affect your policy cost. You will also be asked about security (alarms, immobilisers) and where the car is kept.

Your employment information

Insurers want to know if you work full-time, are in education, are self-employed, are unemployed and so on. You will also be asked to select your job description from a list of pre-prepared options.

What to do if you disagree with your insurers payout

You don't have to accept your insurers offer if you've suffered a total loss. Here's how to get the best vehicle valuation.
Being involved in a total-loss incident is a motoring nightmare, with a mountain of paperwork, the hassle of finding alternative transport, not to mention loss of no-claims bonus or any injuries sustained. And many consumers find that the settlement offered by their insurers just isn’t up to scratch.
But you can dispute your insurers offer, rather than begrudgingly accepting the payout, providing you have a strong enough case. Here's how.

Make your case

First things first, it’s important to keep your cool throughout the process. No matter how upset you are about the settlement, being polite to whoever is dealing with your query can only help your case.
Insurers usually calculate your settlement through a combination of an engineer’s report (unless the car was stolen) and a car valuation guide, which does take rough mileage into account. However, the process is ultimately a negotiation between customer and insurer.

Do your research

In order to make the strongest case against the settlement price, it’s important to have several things at your disposal:

• Before speaking to your insurer, browse as many valuation guides as you can to find prices supporting your claim, as these are what is taken most into account, for example Parkers or Glass’s (there is a small fee for valuation from Glass’s, but it is a reputable source.)
• Motor sales websites like Auto Trader will also be valuable in proving your case. Find an example of a car for sale that’s as similar to yours as possible and that supports your valuation.
• Keeping recent, date-stamped photos of your vehicle can also help illustrate the condition of your car prior to the loss.
• You can pay for an independent valuation by an engineer if you wish, however this can be costly and there’s a risk that the valuation comes in below the original, leaving you further out of pocket. Ask your local garage for a quote on a valuation.

Take these factors into account, remain collected, and you’ll give yourself the best chance of receiving a more generous settlement.

Protect yourself

There are certain precautions you can take that will help you in a total loss situation, and make the whole affair more manageable.
Firstly there’s car depreciation (or ‘GAP’) insurance; a policy that covers the difference in price between the valuation at purchase and at the time of loss, paying out on top of any settlement you receive. Read our GAP insurance guide here.
Next there’s top-up cover, an additional benefit sold by some insurers that pays out a guaranteed fixed sum (e.g. £1000) on top of your settlement figure. This is especially useful for drivers with lower value vehicles.
Finally, many insurers will offer you the benefit of car-hire for a one-off fee. Unlike the regular courtesy car, which only covers you if your car can be repaired, car-hire supplies you with a replacement vehicle whilst your claim is being settled and cheque sent out. For those living alone or in a one-car family, who rely heavily on their vehicle, this can be a life saver.

Exercise your rights

Ultimately your insurer may still stick with their initial valuation no matter how much you protest, however it is important to go through the process of challenging if only to make sure you’ve done all you can and simply to exercise your rights as a consumer.

How to get your car insurance claim right

Making a car insurance claim varies according to the circumstances and the car insurance provider. Follow these simple rules to ensure the process runs smoothly, and, hopefully, is resolved quickly.

How do I claim on my car insurance for an accident that wasn’t my fault?

Report the incident as soon as possible – if your car insurance company has a 24-hour hotline, use that – and ask for a reference number. Car insurance claims don’t have to be a headache as long as you follow the right procedure.
Ask your car insurance company what documents they will need to support your car insurance claim and be sure to keep a copy of all certificates, receipts and correspondence that relate to your claims.

How do I claim if the other driver disputes the circumstances of the accident?

Follow the above steps to ensure you have gathered as much evidence as possible.
While insurance companies will do everything they can to defend your position, if the evidence is not there, the parties involved may have to share the costs. If this happens, your insurance provider will do its best to get the most satisfactory settlement with the other driver’s company. Remember, it’s in your insurer’s interest too.

How do I claim if my car is stolen? Or if my vehicle contents are stolen?

Be sure to report a stolen vehicle to the police straight away – you will need a crime reference number for your insurance company.
Then follow the above steps to ensure you have as much evidence as possible in relation to your claim.

Car insurance ancillaries: Which do you need?

Insurers offer a multitude of add-ons to accompany your car insurance policy, but do you actually need them?
In the wake of around £215m having been paid out by banks for mis-sold Payment Protection Insurance (PPI), it’s clear we don’t like being sold things we don't really need, and car insurance is no exception.
When buying a car insurance policy we're faced with a selection of additional products to add on, so here's a run-down of the ones most commonly offered and how much you should pay for them so you can work out whether or not you need them at all.

Protected no-claims bonus

• What is it?

If you’re asked whether you’d like to protect your no-claims bonus (NCB), you can do providing you’ve earned four years. This generally allows you two fault claims within a three-year period without losing your NCB. Some insurers also offer Guaranteed NCB, which costs a little more but allows an infinite number of fault claims in a one-year period.
Spokesman for the British Insurance Brokers Association (BIBA), Graeme Trudgill, says that “most insurers will charge an extra 5 to 12.5 per cent of the total premium cost for NCB protection.”
If you choose to protect your NCB having only just reached your fourth year, the cost may be considerably more than that.

• Is it worth it?

Being involved in an accident will make your premium go up. Losing your NCB will mean further loss of discount and the premium will climb even higher. What was a £350 premium then has the potential to more than double, so this product could save you a lot of money if something was to happen.

Hire car

• What is it?

This add-on is different from the courtesy car, which is generally included in all fully comprehensive policies and only covers you if your car is deemed repairable by the garage.
The hire car benefit then, supplies you with a replacement vehicle in a total loss situation, so from the point your car is deemed a write-off or stolen until you receive your settlement, which can often take up to three weeks. This benefit usually costs between £20 and £30.

• Is it worth it?

In a word, maybe.
It depends on how heavily you rely on your car. If you live in a one-car household and rely on your vehicle every day, it may prove invaluable.
If, on the other hand, you have access to another vehicle or don’t rely heavily on your car, you can probably make do for a few weeks and save yourself a bit of money on your premium.

Legal cover

• What is it?

When an accident isn’t your fault, this helps you claim back any uninsured losses such as your excesses, alternative transport costs, loss of earnings and injury compensation.
On price, BIBA’s spokesman says that “you shouldn’t pay more than £20 for this, if not included in the policy as standard.”

• Is it worth it?

Yes. If you have an accident that isn’t your fault, it may still require further investigation and you’ll still have to pay your accidental damage excess. Legal cover means not having to fork out to get back anything that is due to you.

Personal injury cover

• What is it?

Additional compensation cover if the policy holder or any named driver were to sustain a serious injury or death whilst driving the car. There are terms and conditions that apply here, so check with your respective insurer.
Levels of cover and price will differ between insurers, but as a guide, you shouldn’t pay more than £30 and it may already be included in your policy.
BIBA’s Trudgill said: “There is often a level of personal injury cover already included in comprehensive policies, but many simply don’t know it’s there or forget to claim.”

• Is it worth it?

Many drivers will already be covered for serious injury or death through either life insurance or similar policy, sometimes offered by their employer, but it’s unlikely that a young person will have any such cover in place.
This then could be a welcome benefit to their policy. Equally, if you have a young driver named on your policy, you may do well having the extra protection in place for them.
Remember, this is a personal decision, so don’t be afraid to say no.

Know what you’re covered for

So when you’re car insurance policy is next up for renewal you need to think about:

• Which (if any) of these add-ons are included as standard?
• Which ones might you need?
• Which ones can you do without?

The main thing is to make sure you’re not pressured into paying for anything you don’t need, but that you get a level of cover you’re happy with.

Rise in cost of insurance premiums due to frauds

New insurance industry figures show the increasingly damaging impact of fraud on the cost of cover. But providers are pledging to crack down on bogus claims.
Britain’s insurers are losing £2.3 million every day to fraud, new figures from the Association of British Insurers show.
Bogus claims on car insurance policies account for almost half the total, at £1.12 million a day – more than £400 million a year.
But the most common type of fraud relates to home contents policies, with scores of daily claims for accidental damage that has, in fact, been caused deliberately.
The ABI said fraud added an average of £44 a year on to each household’s overall insurance bill.
Spokesman Nick Starling said: “Insurance cheats do not prosper – they can expect to get caught, face problems getting future insurance and risk getting a criminal record.
“The majority of customers are honest and rightly object to subsidising the cheats. This is why 2011 will see insurers intensify their war against the cheats, to protect their honest customers.”
Among the examples of fraud recorded by the ABI was a claim for theft of DVDs which were yet to be released in the UK.
Another man claimed for compensation after tripping over a loose paving slab, only for investigators to find his injuries had been sustained after being hit with a baseball bat in a fight.
A further individual told his insurer his car had been damaged while parked near his home. In fact the vehicle had been involved in a collision while racing at the Nürburgring track in Germany.

Factors affecting insurance premium

The car and your usage

The type of car you drive affects your car insurance premium, as cars are rated according to insurance groups. This is set by the Insurance Group Rating Panel and is set from 1 to 20. When buying a new car, it is worth taking these ratings into account before you shop around for insurance for your car.
The number of additional drivers, and their driving history, also affects your premium, as does your occupation and your annual mileage. Put simply, the more you use your car and the further you drive, the greater the risk of incident, hence the higher premium.

Drivers on the policy

Additional drivers don’t have to drive up car insurance costs.  If you need to add another driver to the policy, it’s always worth sticking, say, a parent on your policy and then running an online search, as some car insurance companies might give a discount to acknowledge the experienced driver. However, do not add names of drivers if they will not actually be driving the car. Lying on your policy could result in it being void.

Types of cover

The final variable on insurance for your car is the level of cover you choose. Remember, the cheap car insurance premium may not provide the best level of cover for you. Compare third party only with one company to third party, fire and theft with another – it may only be a small additional investment, or even cheaper in some cases.

What drives the cost of car insurance?

f you’re interested in saving money on your car insurance (and, let’s face it, who isn’t), it’s worth getting a handle on the various factors that affect the price of your car insurance policy.
The price of your car insurance is dependent on a number of factors:

     
• Your personal details, such as address and driving history
     
• What car you drive
     
• Who owns and drives your vehicle
     
• How you use your car
     
• The type of cover you choose

First, let’s talk about you. Your age, gender and how many years you have been driving are all crucial to insurers to help them give you a competitive quote for cheap car insurance.
Building up a healthy no-claims bonus (NCB) is crucial to reducing car insurance premiums. It varies from company to company so it’s well worth comparing various car insurance quotes. It doesn’t matter that you’ve built up your NCB with a different company – sometimes it will be taken into account in your new insurer’s quote.
An NCB of five years or more, for example, can entitle drivers to a 70 to 75 per cent discount, even on cheap car insurance premiums.
Your address will also affect your quote so be sure to shop around for cheap car insurance every time you move. In general, city centre or rundown areas are considered higher risk, and make the premium higher. Parking in a garage or off the street may help this.
Other security measures, such as alarms and immobilisers, are often taken into account.

What level of car insurance cover do I need?

The minimum legal requirement for car insurance cover is third-party cover.
So why might you need a level of cover over and above the minimum legal requirement? Well, a greater number of drivers will have third party, fire & theft  than third-party-only car insurance, as this will indemnify the vehicle user in the event that their pride and joy is stolen or burnt to a crisp.
In short, greater cover in terms of insurance for your car equals greater protection against those unexpected curveballs life throws at you. If you’re on a budget, replacing a stolen or damaged car would do more than dent your monthly outgoings – it could write them off completely. Do you have a spare couple of grand in your account right now?
If you’re looking for insurance for your car or to upgrade your policy, it’s worth shopping around. And be sure to check exactly what is include

why do i need car insurance??

Put quite simply – it’s the law. Insurance for your car is a necessity, not a luxury, as driving without insurance is an absolute offence.
Since 1930, and reinforced with the 1988 Road Traffic Act, all drivers are required to have at least third-party car insurance. So cheap car insurance is far better than no insurance for your car at all.
If you are caught driving without car insurance, what happens? Well, aside from a legal requirement to foot the bill of any third party or property damaged in an accident or incident, you may well face an additional fine plus a driving ban.
Driving without insurance for your car is a serious offence which can result in an immediate disqualification from driving. Police also have additional powers to impound, and possibly scrap, your car.
The estimated 20 per cent of young drivers who drive without insurance may not be aware of the risks, but they are serious..
So to be better safe than sorry ..buy a car insurance.........