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Car insurance

Car insurance is essentially financial protection for bad things that can happen when you own a car – bad things like damage to, or the theft of, your car or being held financially responsible for damages to another person’s property that were caused by your car.

Types of car insurance and what I’m covered for?

The most common and complete type of car insurance is comprehensive cover. It’s an “all-in-one” cover that protects your car against damage and loss and also protects you if you are held liable for damage caused, by your car, to other people’s stuff. There are other, more limited options like third-party only cover that protects you only against being held liable if you cause damage to other people’s stuff with your car, or third-party, fire and theft that adds on vehicle theft and damage caused to your car by fire onto the standalone third-party cover. Your car finance house will require comprehensive cover when you take out a car loan.

What value is my car insured for?

The value your vehicle will be insured for will vary between different insurers, so it is important to check your policy wording. The three most common definitions are retail, market (lower than retail), or trade value (lower than market). At Naked we insure your vehicle for the highest of these three, i.e. retail value.

How is my premium calculated?

Your car insurance premium will be influenced by a number of different factors that will vary from insurer to insurer. The most important ones are the type of car insurance (e.g. comprehensive vs. third-party only), the value of your car, its make and model, factors specific to you, like how long you have had your licence for, the traffic density and theft risk of the area you live in and what you use the vehicle for.

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Definitions

Market value

Your car's market value is the value you’d sell your car for if you were to sell it privately. Things like your service history, the mileage on the car, or how old the car is are taken into consideration.

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Extras & accessories

When you see the word ‘extras’ on your insurance policy, it refers to things that have been fitted onto your car that weren’t part of the car when it left the factory.

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Business use

Business use in insurance terms refers to you using either your car, home, or another item of yours to earn an income. It’s best to let your insurer know to make sure that you have enough cover or even any cover at all

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