Getting insurance after leaving the Motability Scheme
This page covers some key things to consider when getting car insurance, and some tips for keeping your premiums low when leaving the Motability Scheme.
When leasing a car through the Motability Scheme you do not accrue a personal no-claims bonus. However, for the majority of customers, RSA Mobility (RSAM) provide a letter that you can send to your new insurer. Many insurers accept this as proof of your claims history.
To request a copy of this claims history letter for yourself or a named driver please contact RSAM by emailOpens email client or by calling 0300 037 3737 . If you have less than 12 months claims history, for example drivers aged 16, RSAM will not be able to send a claims letter.
Choosing your car insurance
When purchasing car insurance, it’s well worth shopping around online to see which insurance packages are available. It’s important to review the terms and conditions of the policy to make sure it has the right level of cover for you.
Autonet Mobility is one example of an insurance broker who will provide insurance quotes for customers leaving the Motability Scheme. They take into account your claims history letter from RSAM. They also offer additional benefits subject to terms and conditions of the actual policy.
Benefits may include:
- Glass replacement (windscreen, sunroof and side and back windows)
- ‘New for old’ replacement vehicles that are less than 12 months old
- Loss or damage to personal belongings inside your vehicle
- Medical expenses
- Personal accident compensation
- Breakdown cover with home start recovery from AXA Assist
- Moter Legal Expenses insurance
- Courtesy cars if your vehicle is off the road.
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Levels of cover
While it’s recommended that you take out fully comprehensive car insurance cover, there are other options available.
Comprehensive car insurance is the most complete level of car insurance protection. If something happens it provides peace of mind that your financial losses should be limited to the value of excess on your policy. Comprehensive car insurance covers:
- third party damage
- damage caused by fire or theft
- accidental damage to your own vehicle
Third party car insurance is the minimum level of insurance cover and is the minimum legal requirement to drive on the UK’s public roads. It does not cover the cost of repairs to your own vehicle or if your vehicle was stolen or damaged by fire. Third party insurance covers:
- any damage to you, your passengers and people outside of your car
- any damage to someone else’s property if sustained by a third party
Third party, fire and theft car insurance is the next level of cover and includes third party cover as well as cover for your vehicle if it’s stolen or damaged by fire or attempted theft.
Your monthly premiums and insurance excess
Insurance companies will consider a number of factors when calculating your risk and insurance premium.
These factors include, but are not limited to:
- your age – drivers under the age of 25 tend to face higher car insurance premiums.
- the vehicle’s make and model
- your location
- any driving convictions you may have.
An insurance excess is the amount of money you will have to pay your insurance company if you are involved in an accident. For example, if the damage to your car amounts to £1,000 and your excess is £100, you would have to pay the first £100 towards the repairs. The insurer would pay the rest.
Usually, the excess is divided into two sections:
- compulsory excess, which is set by the insurer
- voluntary excess, which you can choose to add
If you choose to increase your voluntary excess (meaning you pay more in the event of an accident) the overall insurance premium will normally decrease.
You may also have to pay an excess for glass replacement. This is usually around £50 to £75, depending on the insurer.
Keeping your insurance premiums down
These are some of the things you can do to keep the cost of your insurance premium down:
- carefully select the make and model of your car so it falls into a lower car insurance group
- drive with care to avoid points on your licence
- boost the security on your car
There may be additional insurance costs which you didn’t have to pay on the Motability Scheme.
For example, if you make a change to your policy such as changing a driver, you may pay an administration fee. Make sure you ask your chosen insurer what these fees are, especially if you need to change your driver regularly.
Any driver car insurance
If you have a number of drivers that will have access to your new vehicle, any driver car insurance may be cost effective for you.
Insurers may stipulate that all drivers must have held a full UK driving licence for 12 months and have no claims or convictions. There may also be age limitations.