Student Car Insurance Guide

It’s high time we brought our readers an updated guide to student car insurance. We have scoured the net to bring together all the best resources and latest information on where to find the best value deals.

A great place to start would be the National Union Students (NUS). The Union have long had a partnership with Endsleigh Insurance - the only insurer recommended by NUS. In fact the relationship stretches back for over 40 years, enabling Endsleigh to use their expertise to develop great value motor premiums:

• BEST price from Endsleighs panel of 40 car insurance schemes
• FAST claim turnaround
• 90 day European cover included

Lastly a reminder of the diferent levels of car insurance from which you can choose, why making your No Claims Bonus a priority is a must, and a last but not least reminder of the legal requirement for Road Tax!:

Third Party Only Car Insurance
This is the lowest level of cover available and is therefore often the cheapest. However, it is important to note that it will not provide you with cover for the costs of loss or damage to your car or belongings. By selecting this level of protection you are choosing the minimum level of cover for your vehicle as required by the Road Traffic Act 1988.

Third Party Fire & Theft Car Insurance
Adding fire and theft will provide protection against damage to, or loss of your vehicle due to it being stolen or set on fire.It also possible to include cover for legal fees in case you require a solicitor to represent you.

Comprehensive Car Insurance
If your vehicle is valued at over £5,000 then, by law you must have comprehensive cover, thus the majority of motor policies sold in the UK are of this type. Fully comprehensive motor insurance will cover everything as in a standard Third Party Fire and Theft (TPFT) policy with the addition of Accidental Damage.

No Claims Bonus
No Claims Bonus (NCB) is extremely important for reducing your student car insurance premiums. A NCB of five years or more, for example, can entitle drivers to a reduction of up-to 55-75% over the standard policy premium!

Road Tax
If you use or keep a vehicle on a public road, you must display a valid tax disc on it. As the registered keeper of the vehicle you’re responsible for taxing it or making a SORN (Statutory Off Road Notification) if it’s to be kept off the road.

Altering Your Car Insurance Policy - Think Twice

Are you planning to alter or change any part of your current car insurance policy? If your answer to this question is yes, you need to read this:-

New research has indicated that drivers are being hit with fees of more than 300 million pounds a year for making changes to their car insurance policies.

The removal of a clause on “excessive charges to retail customers” in the Insurance Code of Business earlier this year has left consumers open to alleged unfair charges.

Almost 60 percent of drivers - 14 million people - need to make amendments to their policies mid-term, and are being stung with fees totalling 333 million pounds. The research comes amid a test case designed to decide whether bank charges are fair.

The average charge for making an amendment to a car insurance policy is just over 22 pounds. The top 10 insurers charge an average of more than 38 pounds for cancelling a policy, almost 17 pounds for making an adjustment, such as a change of address or name, and almost 12 pounds for providing duplicate documents.

Failure to amend policies can result in invalid insurance. Charges vary widely, the data shows. Some insurers do not charge anything for certain policy alternations: Norwich Union, Direct Line, Prudential and Hastings are among those who do not levy fees for duplicate documents, while the latter and Swiftcover charge nothing for change of details.

Others, however, charge unlimited fees. Direct Line, Churchill and Prudential have no set charges for a policy being cancelled, but calculate these fees on customers’ remaining premiums.

High street banks and the consumer watchdog began court proceedings last July to resolve a dispute on the charges applied to unauthorised current account overdrafts, after thousands of customers reclaimed millions of pounds in refunds, but banks continued to impose the charges.

A preliminary hearing at the High Court, which started in January, will decide whether the fees, typically between 24 and 39 pounds for each transaction over and above an authorised overdraft, should be regarded as unfair under consumer contract regulation.

Making a Complaint Against a Car Insurance Company

If you feel aggrieved about the actions of your car insurance company or feel you have good grounds for making a complaint, there is a series of steps you can take to seek re-dress.

First and foremost it is always best to make to make your first port of call the specific car insurance provider, insurer or broker with whom you have a complaint. Try and make every effort to ascertain the name of the appropriate people to speak or write to obtain an answer or solution to your grievance. You should always ask the company about their recommended complaints procedure and follow that.

If you find no joy or resolution through your motor insurer then there are three organisations which you can approach and contacnt for guidance, information and assistance.

The first is the Association of British Insurers (ABI). Although the ABI is not an insurer, does not regulate insurers or mediate in disputes and cannot endorse individual products or services, it is still an excellent source of information and guidance. If an insurance company is a Member of the ABI it will endeavour to follow its code of conduct.

The Financial Ombudsman Service (FOS) is the independent service for settling disputes between businesses providing financial services and their customers. If you don’t know who to complain to at your insurer or you’re unsure about anything, get in touch with the FOS. They will contact the right person for you, telling them that you have a complaint that they need to look into.

The Financial Services Authority (FSA) regulates the insurance industry in the UK. Firms regulated by the FSA must provide a formal and free complaints service. Firms should tell you about this in information they give you about their services. Ask for this information if you don’t get it. The FSA website lays out simple guidelines for progressing your complaint.

Insurance Word of The Week (8)

Our Eighth insurance word of the week is: Authorised Person

A person (usually a firm) that has been approved by the Financial Services Authority (FSA) to carry on one or more FSA regulated activities.

The Financial Services & Markets Act 2000 (FSMA)
FSMA is concerned with the regulation of financial services and markets in the UK . Under Section 19 of FSMA, any person who carries on a regulated activity in the UK must be authorised by the FSA or exempt (an appointed representative or some other exemption). Breach of section 19 may be a criminal offence and punishable on indictment by a maximum term of two years imprisonment and/or a fine.

A copy of FSMA, as well as secondary and related legislation, can be found on the Treasury’s website. Bear in mind that this version of FSMA does not include amendments made to it by subsequent legislation.

Insurance Term of the Week (2)

For our second week, we have chosen - ACCIDENTAL DEATH BENEFIT (ADB).

Definition
A supplementary life insurance policy benefit that provides a death benefit in addition to the policy’s basic death benefit if the insured’s death occurs as the result of an accident.

Key Features

• All benefits are paid in addition to any other policy or family income entitlement.
• All cash benefits are free from income tax. (Under current legislation).
• Low monthly premiums.
• No medical examination.
• This type of policy is generally available to anybody aged between 18 and 81 who resides permanently in the United Kingdom.