Industry Insider: 3 Questions about Car Insurance Answered

One of the most important things to do when buying a new car is to make sure that you have the right insurance.

Not only does the correct policy protect you from accident or theft, but it also protects other road users as well. What’s more, having valid car insurance is a legal requirement, but it can also be incredibly confusing. With the wide variety of options available and the different types of insurance necessary for different uses, here’s a rundown of some of the most commonly asked insurance questions among new car owners. If you want to stay protected on the road, then these might just give you the answers you need to keep yourself safe and legally covered.

1. Driving other cars

Many people seem to be under the impression that if they have a comprehensive insurance policy, then they will be able to drive a friends car with nothing more than verbal permission. While it is possible to use your insurance to drive another vehicle, the vast majority of insurance companies will charge you an additional fee. For under 25s, it is often easier to buy temporary car insurance if you are hoping to drive a vehicle belonging to someone else. Being caught driving a car that you are not insured to drive can seriously affect your future insurance premiums, so make sure that you’re covered and talk to your insurance provider.

2. Using your car as a taxi

The impact of Uber has made many people look at the possibility of using their own car to make a little extra cash. Some even see it as a realistic alternative to their current occupation. While this is now a perfectly viable option, it’s worth learning about how insurance works for taxi drivers. It is a very different insurance policy to standard car insurance, primarily due to the expected increase in driving hours and the fact that drivers will often be working at unsociable hours. If you are looking at using your car to make money, then look for some cheap taxi insurance to make sure that you are covered. Having the right insurance is essential for all drivers, but with passengers in your vehicle, it becomes even more so.

3. Multi-car policies

This type of insurance coverage can save money on the premiums of people with more than one car. If you have more than one car at your property, then you will be able to list those cars as individual items on a policy. The fact that two people are able to use the same policy to cover multiple vehicles (as long as they live together) can result in a serious reduction on your monthly payments. They can be particularly cost-effective if you have multiple cars, as you can often receive some discounts per car that will accumulate. Each person named on the policy also gets to keep their own no-claims bonus, making this a very cost-effective and practical solution for families and those with multiple cars. It’s worth recognizing that uninsured drivers are responsible for raising the overall price for everyone on the road. Make sure that your multi-car policy will cover every vehicle that you use.

Insurance is more than simply a way of making sure that you are protected on the road. It is the law. Make sure that you have the right policy, and your driving experience will be much safer and secure.

Featuring the 2018 Lincoln Continental