Motor Insurance

 

Typically motor insurance is coverage that helps protect you in the unfortunate event of an accident. Usually you sign a waiver or policy which outlines the premium that you are required to pay. If you are using a car hire you are required to pay the premium up front but if you own or lease your car you usually pay this fee on a monthly basis.

Some insurance policies carry a deductible which means you have to pay a minimum amount whilst the insurance company has to pay for the rest of the damage. For example if your deductible is £300 this means if the damage to your vehicle will cost £3,000 then you will have to pay £300 whilst the insurance company pays £2,700.

If you are in an accident and you are at fault you can also be held liable for any injuries the other person may have had. This can add up to an exponentially huge bill. One thing to make sure is that you find a policy that accurately covers your situation. If you run a business from home or an office you may need to pay for special business insurance. This may cost more in the long run but will definitely prevent any headaches down the road.

There are also two types of insurance which includes collision and comprehensive. Collision is when you are in an accident with another vehicle and there is damage whereas comprehensive is for when there is damage as a result of hitting an animal such as a deer, bear etc.