How does UBI impact young or high-risk drivers?

UBI can benefit young and high-risk drivers by providing an opportunity to prove their safe driving habits rather than relying solely on demographic factors. This can lead to lower insurance costs compared to traditional policies that typically charge higher rates based on statistical risk.

How does indemnity work in a liability insurance claim?

In liability insurance, indemnity compensates for legal costs, settlements, or judgments that arise from third-party claims, such as lawsuits. If you're found legally responsible for injury or damage, the indemnity provided by the insurance will cover the costs to restore the financial position before the liability occurred, up to the policy limit. This may include attorney fees, court costs, and settlement payments.

How does a deductible impact insurance premiums?

A higher deductible lowers premiums because the policyholder agrees to pay more out-of-pocket before insurance covers a claim.

How does the FCA help consumers understand insurance products?

The FCA requires insurers to use clear, simple language in policy documents, avoid misleading advertising, and provide key facts summaries. It also offers consumer education resources to help individuals make informed insurance decisions.

Does pet insurance cover routine vet visits?

Standard pet insurance plans usually do not cover routine vet visits, but many providers offer optional wellness plans that reimburse preventive care costs.

How much liability coverage do I need?

The required minimum varies by state, but many experts recommend higher limits than the minimum. A common recommendation is 100/300/50, meaning $100,000 per person for bodily injury, $300,000 per accident, and $50,000 for property damage. Higher limits offer better financial protection.

Is it always worth maintaining NCB instead of filing a claim?

It depends on the repair cost. If minor damages cost less than the NCB discount you would lose, it may be better to pay out of pocket. However, for major damages, filing a claim could be more beneficial despite losing the NCB.

Can I name my pet as a beneficiary?

No, pets cannot be direct beneficiaries, but you can set up a pet trust and name it as the beneficiary to ensure funds go toward their care.