HSBC Car Insurance – 90 Second Guide

The latest installment from our ’90 second guide’ series, we bring our blog readers all the relevant, latest information you need to know before purchasing your new HSBC car insurance policy.

HSBC will check a panel of leading UK car insurers including Norwich Union, Allianz, AXA, Fortis and Royal and Sun Alliance to help you get the best motor insurance quote.

New customers can claim a 10% discount when you buy your new policy online. HSBC reserve the right to remove or vary this offer at any time without prior notice. The main features and benefits you get from HSBC are as follows:

• Free courtesy car when you use an approved repairer
• HSBC insurers give discounts for limited mileage and garaged cars
• Unlimited Glass & Windscreen cover on all comprehensive policies when you use an approved repairer
• Up to 90 days’ free cover for driving in Europe
• All repairs guaranteed for a minimum of 2 years when you use an approved repairer
• 24-hour Claims Helpline
• Unlimited cover for entertainment systems and satellite navigation systems permanently fitted to your vehicle by the manufacturer

*Only available for customers with comprehensive cover and subject to availability. The courtesy car you receive may not be of a similar make and model to that insured.

Optional Extras
Get RAC Motor Breakdown Cover for only £65 per year includes Roadside Assistance, Recovery At Home and European Motoring Assistance. Get RAC Legal Expenses Insurance cover for only £15 per year when you take out an HSBC Bank Car Insurance policy.

£2,000 Returned to Driver Whose Engine Was Ruined by Floods

Here is the text of a letter we picked up on in the Saturday Telegraph Money ’Ask the Expert’ section. We’ll give it to you as it appeared in the paper.

WE GOT stuck in our car in floods and the engine was ruined. An independent engineer appointed by the insurer, Lloyds TSB car insurance, inspected the car at the garage and agreed that a new engine was required. The old one had done 80,000 or so miles.

My claim was accepted and the insurer confirmed that, subject to my payment of the £250 excess, it would setle the balance on receipt.

After the car had been repaired, I received a phone call from the engineer saying Lloyds TSB was applying a ‘betterment charge’. This turned out to be £1,968 including value added tax (VAT). We needed the car and there was no time for debate. So we paid the garage. 

A ‘BETTERMENT charge’ reflects the uplift in the value of the car, compared with what it was worth before the incident that led to the claim. The purpose of insurance is to return the insured to the position they were in originally, rather than making them better-off.

The charge you refer to reflected the added value of having a brand new engine rather than the old one that had significant mileage on the clock.

However, you could have had a cash settlement in line with valuie of the destroyed engine but Lloyds TSB Insurance had not told you this was an option.

After the betterment charge was applied, you offered £400 towards it. You felt that, having confirmed that the insurer would settle the balance of the repair, it should not have hanged its mind.

There is considerable force in that argument but the insurer did not accept your offer. Now, however, a full refund of the £1,968 has been sent to you.

Classic Car Insurance – 90 Second Guide

As part of our continuing 90 second second guide series, we bring the growing number of Homeapproved blog readers the wisdom for choosing the most suitable classic car insurance policy.

The right classic car insurance cover should be tailored specifically for your individual driver and classic vehicle profile. Your classic motor will fall into one of the following four recognised categories used by most of the insurance companies:

• Veteran Cars: Manufactured before 1903
• Vintage Cars: Manufactured between 1903 and 1933
• Classics Cars: Usually at least fifteen years old
• Cherished Cars: Vehicles aged over 10 years and driven no more than 7,500 miles per annum

Most high quality classic car policies will combine a particular roster of features and benefits, with higher levels of cover than a standard motor policy. Many owners will use their classic or cherished vehicle for track days and other special events, making it imperative that you choose a policy which gives complete peace of mind in the event of the worst happening, and ensuring the high cost of any repair will be fully met. Some of the best policies on the market can include the following features and benefits:

1. Agreed value (valuations not usually required)
2. Free Green Card Cover (up to 90 days a year)
3. Option to retain salvage
4. Windscreen and Window cover
5. Full breakdown and recovery service for the UK and Europe

Direct Line Car Insurance

As one of our Top 5 rated car insurance companies, we feel obliged to provide our readers with the lowdown on this leading motor insurer.

Breaking News
Royal Bank of Scotland Insurance (RBSI), the company which owns the Direct Line brand, has completed its aggregator u-turn by entering into an agreement to feature all of its insurance products on Confused.com. The deal, which includes leading brands such as Churchill, Privilege and Tesco, notably excludes Direct Line Car Insurance.

Direct Line Car Insurance
The latest offers and incentives provided by the insurer include:

‘We promise not to increase your price next year’

• New customers only
• You must accept a quote by 31st May 2008
• The price you pay for your second policy year will not exceed the price you paid for your first policy year as long as there are no changes in your policy including cover, vehicle, drivers or claims and convictions
• In Northern Ireland cover not available to under 22’s

Policy Features and Benefits

1. No excess to pay if you’re hit by an uninsured driver with their comprehensive cover
2. Named drivers earn their own no claims discount (for when they take out a Direct Line policy) – 95% of their car insurance claims are agreed over the phone
3. The company will clean all repaired cars inside and out before they return them
4. If you’re hit by an uninsured driver they will cover your excess and your no claims discount won’t be affected

Contact the company: Direct Line Insurance plc, 3 Edridge Road, Croydon, Surrey CR9 1AG.
Telephone: 020 8686 3313.

Norwich Union Car Insurance – Update

Norwich Union car insurance are currently offering Up to £75 cashback for 3 or more years no claims*

Benefits

• Up to £75 cashback for 3 or more years no claims.
• Up to 10% discount when you buy your car insurance online
• Named drivers earn their own no claims discount with us (up to 70%)
• Guaranteed No Claims Discount for the life of your car insurance policy (optional).

*For any new customer who buys a fully comprehensive car insurance policy with Norwich Union Direct and has 3 or more years NCD they could get up to £75 cashback. See website for full terms and conditions.

Car Insurance Renewal

If your current motor policy is up for renewal what do you need to do to make sure you get the best deal, either from your current insurer or from a new motor insurance partner? Below we have provided a succinct guide to best practices to ensure you obtain the cover you need at the lowest price.

Car Insurance Renewal
You might be surprised to know that even if you do not make a claim (through your current insurer) on your car insurance policy in the first year, your premium is likely to rise.

The levels of apathy which exist amongst UK personal finance consumers dictates that many motorists are unlikely to switch provider at the end of the first year. The insurers take advantage of this fact and load the premiums during years two and three, clawing back profits surrendered by the initial great deal during your first year.

1. The first rule is if you have not made a claim in the last year you should expect to pay less for your insurance this year.
2. Always shop around and search the market online for a competitive premium.
3. Look for a relevant policy that covers you for the things that matter to you and be sure to compare policies on a like-for-like basis.
4. Consider the excesses and exclusions carefully.

Top 5 Insurers Update – April 2008

Here is the latest monthly update for our Top 5 Car Insurers.

Dropping out of the top 5 are Hastings Direct, replaced by Asda Car Insurance. Asda are currently offering and consistently delivering excellent value-for-money motor premiums.

Let’s see if they can climb any higher (perhaps into the top 3) by the the end of the month? Current league table:

1. Tesco
2. Budget
3. Churchill
4. Direct Line
5. ASDA