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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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