INSURANCE: TRAINING
with no further claims in the previous 12 months,
how can that company justify putting up the
price for the coming year.
Insurance can seem confusing at the best of
times to many, and `special offers' that seem
attractive when taking out a new policy often
don't seem so attractive come renewal time.
Some assume you won't want want the hassle
of looking elsewhere, but the key really is to
shop around. Gather other quotes, and most
importantly don't be afraid to be honest.
If you tell your insurance company you have
found a cheaper quote, most will try and bring
their quote down to match it in order to keep
your custom. Never, ever, settle for the first price
they give you. And if it takes a little work to gain
prices from other companies all that has cost
you is your time... and you will probably find a
cheaper quote by the end of it.
How your premiums are worked out
Insurance premiums are derived from calculated
risk, the risk associated with you as the main
driver of the vehicle to be insured. The most
common factors that affect this risk are age, the
vehicle, your postcode and your driving history.
But your premiums can also be calculated by
profiling of:
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How you use your car
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Your excess
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The type of cover you buy
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Who else is insured to drive your car
As an ADI, you are probably aware of all the
above, so some of the risk factors may either not
apply to you, or have been kept the same for
most of your driving life. So it still doesn't answer
the question as to why your price rises.
All driving school cars have fully
comprehensive cover, which means you will
always involve your insurance company in the
event the worst happens and you have to make
a claim. Even in a non-fault claim you may have
claimed for a hire car, repair costs etc, which your
insurer then claims back from the other party
involved; taking up your insurance company's
time in administration.
One reason could be that insurance companies
map out your driving experience and history and
this is a reason as to why your premiums may go
up they are cautiously planning ahead as to
the risk you pose in the future.
The thinking goes that if you have to make a
non-fault claim then you are four times more
likely to have make another within the next three
years. Based on this balance of risk, the insurance
company is anticipating a further pay out in the
near future hence the increased premium.
The insurance market and risk profiles are
constantly changing, so a quote offered one
week may well change significantly the next,
although we can't always exactly see why, or
understand, the reasons behind it.
Choosing the right insurance policy can be
tricky but as an essential part of motoring the
best thing to do is spend some time shopping
around to find a price that suits you.
The Instructor is supported by many of the
leading specialist insurance providers for PDIs
and ADIs, so check out our pages and website to
find yourself a good deal.
> This issue we have an article on the benefits
of in-car cameras for driving instructors. This
technology could help in the event of any
claim, and may even reduce your policy.
IN SUMMARY
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Always shop around for the best deal
come renewal time
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Read our forums for advice on the best
companies and testimonials from other
instructors
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Make sure the exclusions mean you are
not excluded from carrying on teaching
due to no replacement vehicle or recovery
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Go to specialist companies who offer
tailored packages for ADIs and PDIs
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Haggle over the price there is usually
a better deal around the corner, so never
accept the first quote
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Make sure you protect your NCD, with
rising prices you may not be able to afford
the `true cost' of your insurance