Qualified advisers answering your
Financial Questions
call 0800 092 1245

Do you really understand how your car insurance works?

One element of car insurance which many consumers cannot get their head around is the fact that you buy a car, you insure the car for the value at the time (with the premiums calculated on the situation then) but if you are involved in some kind of crash of accident and your car is written off you do not always receive the full value on the insurance documentation. So how does this work?

While we all know that it goes on, there has been very little comment about this element of the car insurance industry. The insurers will no doubt suggest that they cannot payout more than the value of your car prior to it being written off, but if that is the case why do they ask you for a rough value? Why do they even take the value into consideration?

Then you need to consider the fact that a portion of your premiums are actually used to refund the insurance industry for the cost of uninsured drivers. So are we really getting the best deal on car insurance in the UK? What are the real variables that the insurance companies use to arrive at the premium levels?

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details