Taking out an insurance policy for the first time

Although it's possible for young drivers to save money by adding their name to a parent's insurance policy in the long term this can prove to be an expensive option, because the sooner a driver takes out an insurance policy in their own name the sooner they will start to build up a no-claims discount (assuming that no claims are made). Building up no-claims discount can make a significant difference to the premium – most insurance companies give maximum no-claims discount after around five or six years, which equates to a discount of around 60-65.

 

Choosing the level of cover

There are three basic levels of cover offered by insurance companies, although there are really only two that should be considered unless you're on an extremely tight budget. The levels of cover are generally as follows, but every policy varies slightly, so check exactly what's covered by the policy before you

buy:

■ Fully comprehensive cover will provide you with full cover for any damage to your car, even if you back into a gatepost, will provide you with cover against damaging other people's vehicles or property, and will also cover your car if it catches fire or is stolen.

■ Third party, fire and theft (TPFT) cover will provide you with cover against damaging other people's vehicles or property, and will also cover your car if it catches fire or is stolen. However, TPFT cover will not cover you if you accidentally damage your own car.

■ The remaining option is 'third party only' (TP) cover, which is really only worth considering if you have a very cheap car. It will only cover you for damage to other people's cars and property, and you won't be covered if your car is stolen or catches fire. This option is really only a last resort, and many insurance companies no longer offer TP cover.

Fully comprehensive insurance costs more than other types of policy, but bear in mind that the cost of repairing accident damage on a modern car can be very high.

Although your policy will usually provide you with cover to meet the minimum legal requirements when driving in other EC countries, you may have to pay an additional premium if you want the same level of cover there that you enjoy at home.

When taking out an insurance policy you may be asked if you want 'legal protection', and sometimes this is included automatically with your policy. This service is worth having, as it will help to pay for legal action to recover any costs that you may have to pay in the case of an accident that wasn't your fault. Insurance companies may also be able to offer you discounted membership of one of the motoring assistance organisations as part of an insurance policy package.

It really is up to the individual to choose the best policy to suit their needs, but fully comprehensive cover has to be the best bet if you can afford it.

 

Task 3. Supply the missing 25 word parts.

Getting the best quote

It’s always worth shopping around for insurance quotes, because they can vary enormously. Insurance is big business, and there are specialist companies who of__ __ __1) good rates to drivers above a certain age, drivers with a poor dri__ __ __ __2) record, etc. There are also many insurance brokers, who will sh__ __3) around for the best deal on your behalf – but bear i__4) mind that they take a commission on each policy they sell, s__5) although you should receive an expert personnel service you may n__ __6) get the best deal.

Almost all of the big insurance comp__ __ __ __ __7) will provide quotes direct, either over the phone or via t__ __8) internet. Most of the major

insurance companies provide an internet ser__ __ __ __9) which allows you to obtain quotes and take out a policy on-__ __ __ __10). The advantage of this is that companies usually offer a discount – some__ __ __ __ __11) as much as 20 per cent – for buying a policy on-line. If y__ __12) run into any problems when taking out a policy on-line, or i__13) the options provided don’t enable you to provide all t__ __14) required information truthfully, it’s best to abort and phone t__ __15) company to clarify things – if you tell the assistant that y__ __16) were trying to take out a policy on-line they’ll probably st__ __ __17) give you the on-line discount.

It’s always worth shopping aro__ __ __18) for quotes from different companies, but make sure that the poli__ __ __ __19) you’re comparing are similar. Often policies differ in detail – f__ __20) instance, many policies provide windscreen cover without affecting your no-claims bo__ __ __21), and you may have the use of a courtesy car whilst yo__ __22) own is being repaired. Many of the larger insurance companies de__ __23) with their own approved repairers, so if you need to ha__ __24) damage repaired you won’t have to take your car t__25) several different garages to obtain quotes for repair prices. You may also find that the insurance company will arrange for your car to be picked up and delivered back to you when the repairs are complete.

Reducing insurance premiums The best way to save money on insurance is to keep your driving record clean, and shop around when the insurance is due for renewal, but there are other steps that can be taken to reduce the bill. ■ Insurance costs are higher for young and/or inexperienced drivers, so by restricting the cover to older experienced drivers the premium will be reduced. ■ If your car doesn't cover very many miles, you can reduce your premium by restricting the annual mileage. ■ The premium can often be reduced significantly by increasing your voluntary excess. The excess is the contribution that you must pay towards the cost of any repair, which can vary from a few pounds to several hundreds. Increasing the excess means that you'll have to pay more if you make a claim, but your annual premium will be lower. ■ Restricting the level of cover can also make savings. It may not be worth insuring an older car with comprehensive cover. ■ Some insurance companies will give a discount to members of motoring clubs, especially 'one-make' clubs, who can often negotiate worthwhile savings for their members. ■ If your car doesn't have a standard-fitment security system, fitting an approved immobiliser or alarm system is likely to reduce your premium.

 

Task 4. Please insert the correct letter. 29 mal (o oder oo oder oh)

 

No-claims discount

Every year that y___u 1) ’re insured with___ut 2) making a claim, y___ur 3) insurer gives y___u 4) a disc___unt 5), up t___ 6) a maximum of ar___und 7) 60-65 per cent after five or six years. If y___u 8) make a claim, y___u 9) l___se 10) one or tw___ 11) years’ w___rth 12) of disc___unt 13), s___ 14) think ab___ut 15) whether it’s w___rth 16) putting in a claim t___ 17) c___ver 18) the c___st 19) of repairing min___r 20) damage, especially if y___u 21) have t___ 22) pay an excess.

S___me 23) c___mpanies 24) offer ’n___-claims 25) disc___unt 26) protection’ f___r 27) an extra fee. Read the small print carefully bef___re 28) deciding whether this option is w___rthwhile 29).

 

Task 5. Retell the text in pairs.