Insurance FAQs Made Simple
1. Do unpaid premiums affect my credit record? Yes. Missed insurance payments can lead to a default listing and negatively impact your credit profile.
2. Does my credit history affect my premium? It can. A good credit history may help lower your insurance premiums.
3. What determines my premium? Factors include age, gender, location, cover type, and your claims/insurance history.
4. Why does my car premium increase if its value drops? Premiums are driven by repair costs, inflation, technology, and risk—not just car value.
5. Why am I affected by a claim that wasn’t my fault? Insurers assess risk, not blame. If costs can’t be recovered from a third party, it may still impact your policy.
6. Why do premiums increase after claims? Frequent claims = higher risk, which can lead to higher premiums or stricter policy terms.
7. Why must I list the regular driver? Premiums are based on the main driver’s risk. Incorrect details can lead to rejected claims.
8. Why use a broker? Brokers offer expert advice, personalised service, claims assistance from start to finish and help you choose the right cover.
