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Motor Insurance

Motor insurance covers your costs should you be involved in an accident. It is illegal to drive any car or motor vehicle without insurance for that vehicle.

The cost of motor insurance depends on your age, the type of vehicle you have, where you live, and how long you have been driving for . Motor insurance for experienced drivers usually costs less as statistically they are less likely to cause accidents. In 2012 the EU made changes so that women no longer received cheaper insurance.

You can lower the cost of your insurance if you accept a high excess. That means paying more to make a claim on your insurance. You can also lower the cost of your insurance if you have a claim-free record for a year or more. This is when you don't claim at all on your insurance.

Some insurers may offer a further reduction to drivers if they have completed and passed a Pass Plus or Pass Plus Cymru course.

When buying motor insurance, shop around for the best deal but always read the policy very carefully and make sure you understand what's covered and, more importantly, what is not.

There are three types of motor insurance cover:

  1. Third Party Only
    • This is required by law. If you do not have this cover when you or others are driving, it is a criminal offence and you can be charged
    • Third party insurance covers other people (third parties), but not you. If you injure someone or damage their property, they’re covered but if your own car is damaged or stolen, you have to pay for the loss yourself
  2. Third Party Fire and Theft
    • Third party, fire and theft covers other people. So, in that respect, it’s like third party. But if your own car is damaged, you have to pay for it yourself. The difference is that it does cover repairs or replacement if your car is stolen or damaged by fire
    • Like third party insurance, third party, fire and theft isn’t always cheaper than fully comprehensive cover – always compare prices
  3. Comprehensive
    • The highest level of cover. On top of the basics of third party, fire and theft, it’s the only type that covers you if you damage your own car, even if the accident was your fault
    • You can claim for: repairs after an accident, accidental damage, or vandalism (say if someone deliberately scratches your car)

Each policy varies so make sure you shop around for the best deal to suit you.

Make sure you fully understand what your policy covers and never drive without insurance. Remember, your insurance applies to you and a particular vehicle, not any vehicle. Never let someone drive your car without being insured to do so.

Contact BIBA or the Money Advice Service for advice

The Money Advice Service has an excellent section on debt managment including:

You can contact the Money Advice Service on 0300 500 5000 (or 0300 500 5555 for Welsh) Mon - Fri 8am-8pm, Sat 9am-1pm. There’s also an online chat function on their site.

You can contact Meic for free via online chat, text (84001) or phone (080880 23456).

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