Short term car insurance websites, and how they can mislead you.

Yes, there are some excellent short term car insurance websites on the Internet but every one I have checked so far suffers from the same problem; they believe the information which they are given by the insurers!

That may sound a little cryptic so please let me explain. It is a proud boast of short term car insurance companies that if you use their product and have an accident resulting in a claim against your policy, you will not lose the no claims bonus on any existing conventional policy that you may have on this or any other vehicle. The inference, therefore, is that apart from having to pay out the policy excess on your short-term policy, you will have no further expenses.

This could not be further from the truth! What they have failed to tell you is that you are under an obligation to inform your insurers every time you have been involved in an accident which was judged to be your fault, whether or not the costs were settled by another insurance company! What this means is that the next time you receive a quotation, although your no claims bonus may remain the same the basic premium will rise, and possibly by a very substantial amounts, because, quite rightly, the insurance company will judge you to be a less than perfect risk.

Personally, I would have a lot more faith in a website which pointed this out, but to be fair they are in good company. Most conventional car insurance companies offer a facility for a protected no claims discount, and again the inference is that if you have a bump they will pay out and will not increase your premium. Wrong, your premium will almost certainly be increased so even though you may keep your existing no claims discount, you will still have to pay more for your next insurance policy.

As ever, it pays to study every insurance proposal closely; most of us na´vely think that the insurance companies will treat us in a fair and reasonable manner whereas they will in fact, in almost every circumstance, stick to the letter of their policy documents, which are written by their own solicitors and not ours. When buying insurance, proceed with caution!

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