I have Insurance So I’m Sorted – Wrong


You insure a bike or car and you think you are sorted. Right or wrong?

Wrong is the answer.

Most people only find they have not got the insurance they thought they had bought until after an accident.

The law demands you have third party insurance. That covers the cost of the damage you cause to others and their property through your own fault. If you knock over a pedestrian your insurance will pay for compensation and legal costs.

You can increase your third party cover by adding fire and theft. Theft is very important cover for a motorcycle as they do fit nicely in the back of a van.

Beyond that you can insure on a fully comprehensive basis. It is not really comprehensive, let alone fully comprehensive. Fully comprehensive insurance means you have third party cover, probably with fire and theft insurance, plus you have insured the value of your car, van or motorcycle for its market value at the time of an accident or loss. An accident can be your fault and the fully comprehensive policy should pay up. Fully comprehensive insurance works if the value of your vehicle is too high for you to easily replace it with a similar vehicle.

If you are a motorcyclist do check carefully to see if your gear is covered. Helmets and protective clothing are expensive so carefully check what cover you have. Does it replace your kit or does it just cover its market value at the time of damage. Your leathers are not actually worth much second hand. If you want new for old then you will usually have to buy separate cover.

Buying insurance is a nuisance. Unless you take the renewal quote it takes time to complete the forms and compare quotes. You just want to get insured and get on the road. Just a few tips:

·         If your insurance is cheap are you going to be treated generously?

·         If your insurance is cheap are you going to get great customer service?

·         If your insurance is cheap how does your insurance company make a profit?

·         If you insurance is cheap will you get independent advice?

You know the answers to these questions, and this is exactly why Your Key is a very necessary for independent advice and accident support.

Good luck and take care.