6 minute read
MANAGE YOUR LIFE
Hello John, gotta new motor?
Kate talks to Simon Jackson, MD of Policywise in Oakham, about the ins and outs of motor insurance
WHY WOULD YOU go to a broker for motor insurance when you can go on price comparison websites and possibly get a better price? Simon enlightened me.
‘The two most expensive assets people usually have are their home and car yet they often buy insurance on price. People who purchase cover via comparison sites often haven’t got the correct cover and/or they will have conditions/terms on the policy they are unaware of.
‘With comparison sites the M customer is given a reduced set of questions as they just want you to buy as quickly as possible and the price is based on what we call default answers. When you ‘click to buy’ you are asked more questions. Most people don’t answer them so might not be covered if they have a second job that doesn’t qualify, for example. Most students work during the holidays. So being a student is classed as their first occupation then a waitress or pizza delivery driver is their second. Many of the main young driver insurers don’t cover waitressing as a secondary occupation, particularly if it’s in the evening.
‘Consumers need to be aware when buying on price comparison sites that it’s fine to get an idea of the going rate but they must always check the details when they click through to buy, answer the ancillary questions and always read what you are sent when you purchase. If anything is incorrect or you spot terms and conditions you weren’t aware of then go back to the provider immediately and give the correct information. ‘You do have a 14 day cooling off period when you can cancel the policy but you will be charged for the time on risk and possibly an admin fee; so make sure you get it right before you buy. 'As a broker we find the best policy for our clients and go through everything with them and can give advice and recommendations under the FCA (Financial Conduct Authority). We know the insurance companies and what they offer and have professional indemnity insurance so if we do mess up, it’s there if needed. We can
particularly help if a customer is unusual. That could be because of convictions, a poor driving record, a particular occupation or they are a celebrity or sportsperson. A lot of insurance companies won’t touch these people. ‘One of our specialities is young drivers’ insurance. In December 2012 the EU dictated there couldn’t be different pricing for males and females despite all the data ANAGE YOUR LIF E saying females cost the industry less. No one would offer the lower price to males so the female prices just went up. ‘I wanted to set up my own brokerage and I came up with a trading style ‘Girls Drive Better’ but how could I prove it? That’s where telematics come in. If you put a black box in the car it will prove that girls do mainly drive better so when it comes to renewal if she has a proven good driving record discounts can be offered. ‘Our device is a solar powered, windscreen device which scores you in blocks of 100 miles, showing all your journeys, how you accelerate, brake, any sudden changes in direction, the time you’ve been driving and speed. It is worse if you do 40mph in a 20mph zone when kids are going to school rather than doing 75mph
on the motorway. The box will send out 2-3 automated messages to warn you to improve your driving and after that it will trip a phone call from us. At renewal we’ll give a discount on the premium if you drive well.
‘Mileage is also important. If a young person says they do 5,000 miles annually but we find they do 10,000 they’ll get caught out and it’s significantly more expensive to buy additional miles after the policy has started. Never tell lies otherwise your insurance will be invalid. If you state the car is garaged in Rutland when mostly the car is at university in Manchester, the black box will know.
Another potential minefield is finding cover for provisional licence holders. If you go online for provisional driving insurance, you’ll get some very competitive rates but once you pass your test the price shoots up. ne benefit of coming to a broker is that we can suggest perhaps not the cheapest quote in the first place but one that won’t increase as much when you pass.
‘Some insurers will acknowledge if someone has been a named driver on their parents’ policy but many will just start them at zero no claims once they have their own car. We would recommend that if you’ve bought your child a car you’re better off
insuring them in their own name, even though it’s more expensive, as they’ll start to build up their own no claims bonus. If they are sharing the car, you have more di culty but if you take out a telematics product after the first year, providing they’ve driven well, they will get the 30-40% no claims discount and possibly another 10 reduction.
‘Other questions we may ask are about modifications to a car. opular cars are Fiestas, Corsas, Renault Clios and Fiat 500s. revious owners may have put different wheels and exhausts on them, blacked out the windows and changed the suspension. It’s important to disclose any modification to the insurer as you could find your insurance is invalid if you haven’t told them.
‘Some vehicles like Range Rovers and and overs are becoming di cult to insure as they are a huge theft target and some electric cars are di cult due to high repair costs, battery life and costs. We can help find cover for such vehicles. As a broker we can offer a wide variety of cover from yachts, dinghies and horseboxes, motor homes, caravans through to high net worth homes and business insurance. e can offer family fleet, multi car policies. You could have an Aston Martin for the weekend, a BMW for during the week and a Land Cruiser for the kids and the dogs. Insurers recognise you can’t drive all these cars at once so they usually value you on your highest rated vehicle then give you discounts on the others. If you have a favourable occupation and postcode, maximum no claims bonus and you do low mileage you may pay very little for an Aston Martin but more for your everyday car that might get battered at the supermarket.
‘Most people think their comprehensive insurance covers them to drive any other vehicle not owned by them, but it doesn’t. We recommend higher end policies which will give you comprehensive cover so you can drive any car you want and anyone can drive your car. You automatically get breakdown, green card cover, kidnap extensions, defensive driving courses etc. If you’re a high net worth individual, you would want the extended cover as standard. e find that motor insurance is a starting point then our customers look to us for other services. e offer lifestyle policies where you can insure your home, your cars, investment properties and travel insurance all on one policy with one monthly direct debit. Our private client managers will come to your home to discuss your requirements. At the end of the day, what we offer is peace of mind.’
www.policywise.co.uk
