Buckingham Insurance – Frequently Asked Questions

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Buckingham Insurance – Frequently Asked Questions

A rundown of the questions we get asked in the office on a regular basis – we hope this will help and remember this is a dynamic list and will keep growing. Click on the question you want, and it will take you to the relevant part of the page.

Contents

 

1. Why should I use a broker when I can get cheaper cover on a price comparison site?

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2. What do you mean by “we only use “A rated insurers”?

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3. Will Buckingham Insurance match a competitor’s price?

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4. What should I do in the event of an accident?

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5. I don’t intend to claim on my policy, do I still need to report it?

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6. How do I claim on an accident?

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7. Why has my car insurance premium risen this year?

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8. I am a young driver who has recently passed my test. What is the best option for me to get affordable insurance?

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9. Business Insurance seems like a minefield – how can I simplify it?

 

 

1. Why should I use a broker when I can get cheaper cover on a price comparison site?

Firstly, I would like to challenge the notion that you can get cheaper cover using a comparison site. Comparison sites charge insurance companies a hefty fee to be featured, and this is partly the reason why premiums are being driven up.

Another point is that comparison sites are purely form driven, providing generic ‘one size fits all’ cover. The problem with this is that you as an individual do NOT fit into one category – every customer is different, needing specific cover for their specific needs. By filling in a form, there will always be grey areas that may in the case of a claim mean the insurer will not fork out as much as you needed, or worse, not at all.

Finally, brokers exist to find you the right cover for the right price. Perhaps most importantly, we help you make and manage a claim, a long and complicated process for most. Brokers are experts that specialise in certain fields – for example, we at Buckingham Insurance specialise in engineering and manufacturing insurance and our long standing relationships with multiple insurers mean we act on your behalf to find a policy specific to you. We also find insurance for unique and specialist businesses and are experts at finding policies bespoke to your needs. We can reduce a long and complicated search to one simple phone call.

2. What do you mean by “we only use “A rated insurers”?

An A rated insurer is one that is top of its industry in terms of creditworthiness (its ability to pay creditors and any claims made). Here at Buckingham Insurance we don’t use anything else.

3. Will Buckingham Insurance match a competitor’s price?

We will always try to, providing the quote is an accurate reflection of your past history in terms of accidents and other mitigating factors. We have some great relationships with our underwriters, so they will likely be able to help.

4. What should I do in the event of an accident?

    • Step One: Stop the car and turn off your engine, making sure the hazard lights are on.
    • Step Two: Call 999 or 101. If there has been an injury or the accident has blocked the road you should call the police and/or an ambulance as soon as possible. There have also been a large rise in fraudulent ‘crash for cash’ scams, so any evidence for the police would help your case. Dash cams are probably the most effective way to stop you from becoming a victim in these cases, and these days’ good quality ones are very affordable.
    • Step Three: Give and collect details – if possible collect names, addresses and contact details from drivers, passengers and witnesses. Ask for and give drivers insurance details and ask if they are the registered driver – if they are not, find out who is. Call the police if anyone leaves and report the accident to them within 24 hours. If you have hit a parked car, leave your details on the windscreen.

 

  • Step Four: Collect as much information as possible. Taking photos is a good idea – get registration numbers and pictures of the cars involved, as well as weather and road conditions.

 

5. I don’t intend to claim on my policy, do I still need to report it?

Yes – regardless whether you intend to claim, we still need to need to be notified of any accident or loss.

6. How to claim on an accident

If you are with a broker, we will sort out the claims for you, and make sure you get exactly what you require – just make sure to tell us as soon as possible after the accident occurs.

If you are going to deal directly with your insurer, you will need to check the details of your policy very carefully as you may have tell your insurer within a certain amount of time, or the claim will be invalid. This is where all the information you have collected will come in useful, and you will have to spend some time explaining exactly what happened and who was involved. If you decide to continue with your claim after this, your insurance company will inform you of the next steps to take.

7. Why has my car insurance premium risen this year?

The average annual premium is now a hefty £484, with young drivers being hit the hardest, facing a £200 rise this year– a 20% rise since last Spring. While we will always help you avoid unnecessary costs, the rises are beyond our control and are down to regulation and changing market conditions. We have all been affected, but as mentioned, those hit hardest have been young drivers, closely followed by older drivers aged 65 or over.

The three main factors for the rise are:

  • The increased cost of vehicle repair
  • Changes to the way compensation is paid
  • A rise in Insurance Premium Tax (IPT)

The increasing cost of repairing vehicles

New technology in new cars has been steadily driving up the cost of repairs for insurance companies for a few years now. The increased reliance on computers and other electrical devices in cars means that traditional motor maintenance and repair is becoming more and more complicated, involving higher costs and more specific training. Parts that once could be repaired by a good mechanic are now having to be completely replaced. ADAS (Advanced Driver Assistance Systems) windscreens cost up to £700 to replace and the number of cars with this type of advanced technology is only increasing with the advent of the automated and semi-automated cars. Another component that is becoming increasingly more expensive to replace are wing-mirrors, as they are likely to have a mechanism to move it in and out.

Changes to the way compensation is paid

A huge rise in the amount of claims for compensation for whiplash – at a time where the number of accidents has fallen – has driven premiums up. Although the government has promised a crack-down on this type of fraud, sadly most of the savings from this crackdown will not be passed on to you, but will be swallowed up by the recent changes to the discount, or Ogden rate.

The change, which is the first for 16 years, means that the previous rate of 2.5% will be cut to 0.75%, meaning that insurers will have to pay out bigger lump sums. These higher costs are being passed off to you, the consumer. According to the ABI, up to 36 million individual and business policies will be affected to cover just a few thousand claimants a year. We at Buckingham Insurance do not condone the passing off of higher costs to already high premiums, and believe the changes to the rate were ill advised.

The rise in Insurance Premium Tax

To add to this, IPT has gradually been rising, having doubled to 12% since 2011.

These rises, in our opinion, really highlight the need for the government to address these issues. The Motor Insurance Bureau currently receives a large part of your premium in order to pay for uninsured drivers, and this is likely to increase as rising premiums mean that some drivers will find it cheaper to be face the risk of a fine for no insurance than actually pay the premium!

8. I am a young driver who has recently passed my test. What is the best option for me to get affordable insurance?

At Buckingham Insurance, we generally don’t insure younger drivers. However it is a question we get asked a lot, so here are our tips to get cheaper insurance. However you will find that insurance will be expensive no matter the steps you take – statistically you are more likely to crash than more experienced drivers, and in the current climate of premium hikes unfortunately you are the worst affected.

    • Become a named driver on your parents’ policy – this will reduce your insurance in the short term, however you will not be able to build up any no claims. A years no claims bonus will generally get you around a 30% reduction on average, and can rise up to 70% after a few years, so sometimes it is worth paying the higher cost for your first year.
    • Telematics – otherwise known as a black box, contrary to what many people believe there are plenty of options that do not require you to have a curfew or mileage restrictions. Instead, they will gather information such as your location, speed, acceleration and braking, with some providing you with updates so potential illegal driving and speeding can be highlighted. Some say invasive, but if the insurance company can monitor you to be sure you are not driving dangerously you will definitely be rewarded with lower insurance.

  • Paying a larger excess – if you are confident of your driving skills and able to pay a larger excess then this could be an option to get you on the road. This tells the insurer you will pay a large amount of the cost of repair to the vehicle should you claim, and they will respond by lowering the premium. There are a number of companies that offer this kind of scheme, it’s really worth shopping around for the best one.

 

9. Business Insurance seems like a minefield – how can I simplify it?

Getting your business correctly insured can be confusing, so going through a broker means you will be guided through the whole process. There is cover such as Commercial Combined insurance that brings together a range of insurance products a small business would normally need and can be tailored to include risks specific to your business. We’ll always review the requirements you need and make sure you have a full understanding of the cover. If you need any advice, you can call us on 01246 575625 and we’ll go through your options – you may find you only need a bit of employee liability cover if you have a very small business, and we can arrange that for you too.

 

By | 2017-11-13T15:49:54+00:00 August 3rd, 2017|2017, FAQ|0 Comments

Clowne Office

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Clowne
Chesterfield
Derbyshire
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Phone: 01246 575 625

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