Why The Details Matter With Car Insurance
How many of us have filled in our car insurance quotes and just guessed at the answers? Not sure about the right use or can’t find the right occupation, not certain about our annual mileage – we’ve all done it. But the details of car insurance really do matter and if they are incorrect they can lead to an insurance claim being declined with a serious bill accompanying it.
Using Your Car
One of the most common areas that people go wrong with their car insurance is their use. If you don’t work and just use the car for shopping, visiting people and places then you only need Social, Domestic and Pleasure (SD&P). However, if you use the car for work, then this is where the extra levels of use come in.
SD&P and commuting is the name given to the use for commuting to and from work. However, the tricky stipulation with this is that it must be the same place of work each day. If you work in more than one office, then this isn’t commuting but travelling to the same train station to catch a train does count as commuting.
Business use Class 1 is the next level of use and is for those who travel to a different place of work some of the time. It also includes if you travel to one place then need to move on to a second one. It will cover the first driver on the policy and some companies will offer this cover for a spouse but not for other drivers on the policy. Class 2 use is the same but covers any named drivers on the policy other than the spouse while Class 3 is for salesmen and others who travel around a lot of different places.
If you are a taxi driver, delivery driver or a driving instructor, specialist policies are needed to have the right use in your car insurance application.
Mileage & Occupation
How many miles you do each year effects the price of your car insurance as the more miles you do, the higher the risk of an accident. Getting annual mileage right is an area people often have trouble with but look at it this way – the average is 12,000 a year or 1,000 a month. If you do 250 miles a week, then this is what you are doing. If you state a mileage on your policy and are going to do more than it during the policy term, you should tell your insurer.
Your occupation will also have an impact on the price of your insurance and even if you are acceptable to some companies. Nurses are traditionally lower in insurance grouping while an entertainer or a professional sports person is higher. Telling the insurer what you do to allow them rate your occupation correctly is as important as any other detail.
While correct details may increase your premium, incorrect details could lead to a voided policy, a lack of cover, a criminal conviction and a big bill for an accident. So paying a little more each month to have a correct policy is definitely worth it in the long run.