Lloyds TSB Car Insurance

Lloyds TSB Car Insurance

1. Car Insurance is a coverage taken for ensuring payment of your liability in case you are involved in an auto accident. As per the legal requirements the minimum threshold of Car Insurance for car owners is to have a insurance policy that will cover injury or damage to a third party property.

2. Although the minimum requirement in Car Insurance is for a ‘third party' cover, there are options available in the form of ‘act only' and ‘comprehensive cover'. Generally, the people who are not eligible for any other kind of insurance, they only opt for ‘act only' Car Insurance. The drawback with this form is that it does not insure you against accidents on private roads or private property.

3. ‘Third party' Car Insurance of your car provides for the damage to the other vehicle and its driver in case you are responsible for the accident. However, it does not cover damage to you or your vehicle. ‘Comprehensive cover' form of Car Insurance covers you and your vehicle for any kind of possible event.

4. Insurance companies have started offering coverage over and above the various Car Insurance coverage. For example, you can now get cover for fire and theft damage along with the ‘third party' Car Insurance. However, it is important to read the fine print of any kind of Car Insurance coverage so that you know exactly what you are insured for and for how much.

5. While selecting the kind of Car Insurance cover you want to take, keep a few factors in mind. The comprehensive cover for people below 25 has considerable costs. Therefore, if you drive expensive car then only go for comprehensive cover, otherwise third party Car Insurance may be suitable for you. However, at any point of time it is advisable to weigh your needs of Car Insurance with the cost of plan.

6. Another factor to keep in mind while buying Car Insurance is ‘no-claim bonus'. Each year that your car is insured and you do not make a claim, the insurance company lowers the premium for the next year. ‘No-claim bonus' can be up to 70% of the first premium you paid and available if you insured for 5 years continuously and never claimed. Some Car Insurance companies provide protection of ‘no-claim bonus' at an extra cost. It may be advisable to go for this option.

7. ‘Excess' can be a way to lower your Car Insurance premiums. ‘Excess' is the sum you will first pay up in case of damage repair and the remainder if any will be borne by the insurance company. By going for higher ‘excess' you may be able to lower the Car Insurance premium. In addition, when companies asking for lower insurance premiums, a higher charge in the form of ‘excess' may have been hidden in the fine print of your policy document.

8. While filling up the proposal form for buying of Car Insurance it is advisable to be as accurate as possible and to be honest. The reason is that insurance companies can claim a breach of contract even if slightest divergence is there in your car from what you stated in the proposal form. Just keep in mind that you will get what you pay for.