insurance Archives - My Car Credit

Does Car Finance Include Insurance?

Insurance is your first line of defence against everything from fender benders to serious accidents. Not to mention incidents like fire and theft. Car finance is one of the most popular ways to purchase vehicles in the UK, but do agreements come with insurance? Read on as we answer “does car finance include insurance” and what you need to do to stay safe and responsible on the road.

Is insurance included with car finance?

Does car finance include insurance is often one of the first questions asked by borrowers. In most cases the answer is no. Car finance is a very different industry to auto insurance and most companies specialise in only one niche.

When you source a car finance quote, it’s best to assume insurance is not included. That said, some lenders do offer packages so it’s always worth inquiring. Bundling your car finance and insurance can sometimes unlock savings, though it’s not common. Instead, it’s best to source a separate car insurance quote.

As a bare minimum, you’ll need third-party insurance. It’s compulsory on British roads and covers damage to other vehicles and injuries to other drivers and passengers. Does car finance include insurance for third parties? No, like other insurance policies you’ll need to source third-party insurance from an independent provider.

Crunch your numbers with My Car Credit

Can I afford to buy a car, as well as pay for extras like insurance? It’s important to take a close look at your numbers before committing to a car loan.

If you want to keep costs as low as possible it’s worth considering options like Personal Contract Purchase (PCP), which allows you to spread out the cost of car ownership over several years. Your monthly payments are low and at the end of the agreement you have the option to renew the contract and exchange the car for a newer model, make a final ‘balloon payment’ to own the car outright or simply end the contract.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car finance insurance

What Should You Do If Someone Keyed Your Car?

Unfortunately, having your car keyed is a common occurrence. ‘Keying’ occurs when someone damages your vehicle’s paintwork using a sharp object, like a key. It’s technically an act of vandalism, and if your car has been keyed, there are a number of steps you can take.

What to do if someone has keyed your car

Notify the police

As keying is an act of deliberate vandalism, you should report it to the police – but don’t call 999. Report it to your local police by dialling 101 – the non-emergency number.

This ensures that a record of the offence is made, meaning you’ll be given a crime reference number. You’ll need this in the instance of an insurance claim.

Check your insurance cover

Next, you’ll need to check whether your car insurance policy covers vandalism. Some providers cover it as standard, but others don’t. If your policy does include vandalism, then you should consider whether or not to make a claim.

Note that some insurance providers will uphold a no-claims discount, recognising it’s not your fault that your car was keyed. However, not all providers take this stance, so you’ll need to check this and then factor it into your final decision.

Remember that you’ll still have to pay any excess, regardless of whether your no-claims is protected or not. If your excess is greater than the cost of your claim, then it may not be worth making the claim in the first instance.

Gauge the damage

Whether you want to repair the scratch yourself or leave it up to a professional is entirely up to you – but more intense damage will inevitably be repaired more skilfully by an expert. If the scratch is minor, you may be able to handle it yourself. There are products to help with a DIY repair job.

Bear in mind, though, that deep scratches may lead to rust and corrosion down the line. Similarly, there’s always a risk with DIY repair that you may exacerbate the damage.

The cost of a professional repair will vary depending on several factors. This includes the location and scale of the damage, as well as the car itself. If you shop around for a quote, you’ll be able to find the best deal.

How to prevent a car being keyed

There are clear steps that can help prevent vandalism like keying. Parking somewhere that is populated and well-lit helps, particularly if there’s CCTV around. Leave more space between your car and others, as this gives vandals less cover.

At home, park your car in a garage, or install an at-home security system for greater peace of mind. Always ensure that your vehicle’s alarm system is working properly too.

Finance a more secure vehicle

If you think it’s time to level up your car’s safety and security features, you can use our car finance calculator to get a no-obligation quote for a new model in minutes.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

Can You Get Cars on HP with No Deposit?

How Do Balloon Payments Work?

Car Finance or Personal Loan – Which is Best for You?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

What is the ‘Cestui Que Vie Trust’ Car Insurance Scam?

In early February 2023, the UK government published a warning against the ‘cestui que vie trust’ car insurance scam. If you have been approached by anyone claiming to sell car insurance under the banner of a ‘cestui que vie trust’, or others offering false information on how to claim from these fictitious funds, be aware that this is a fraudulent scheme.

What is the ‘cestui que vie trust’ scam?

‘Cestui que vie’ is a French phrase meaning ‘he who lives’ and is a legitimate legal term with a long history. The term refers to an individual who is a beneficiary with rights to property in an estate. It’s most frequently used in life and health insurance policies. Similarly, a ‘cestui que trust’ is an archaic but legitimate phrase referring to the beneficiary of a trust.

A ‘cestui que vie trust’ appears to be an amalgamation of the two terms, but it is entirely fraudulent – it does not exist. There are fraudsters currently claiming to sell car insurance backed by government funds. They advise individuals to claim money from the government using this imaginary ‘cestui que vie trust.’ No such funds are available from the government.

Should you purchase this fraudulent insurance, you will be classed as driving without insurance. This is illegal and risks fines, court appearances and vehicular seizure by the police.

If you or anyone you know has been the victim of the ‘cestui que vie trust’ car insurance scam, report it to Action Fraud or call 0300 123 2040.

Find a car finance provider you can trust

Looking for car finance for your next vehicle? Check your car finance eligibility and discover how My Car Credit can help you take to the road in a new or nearly-new set of wheels.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Car Finance for First Time Drivers: A Beginner’s Guide

What Happens if I Can’t Pay My Balloon Payment?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

fraud insurance Scam

Driving Lessons Prices – What are the Total Costs?

You may think that the main cost to consider when booking driving lessons are the lessons themselves. Whilst they constitute the main bulk of the expense of learning to drive, there are other outgoings that you also need to consider when budgeting to learn to drive.

How much are driving lessons?

There’s no one figure when it comes to driving lessons costs, because it depends on a range of factors including your age, where you live, and the quality of the driving school, as well as whether you’re willing to book an intensive driving course, which can work out cheaper overall.

If you live in London, you can expect the prices of driving lessons to be higher compared to more rural areas. Expect to pay an average of around £30 a lesson, but different driving schools will quote their own rates. Remember that buying lessons in bulk may make them cheaper individually.

The DVLA reports that there is no minimum number of lessons or hours necessary in order to learn to drive, although the DVSA suggests an average of 45-47 driving lessons are typical, with extra private practice on top.

Younger learners may need fewer sessions than older learners, resulting in less overall expenditure on the lessons themselves. Ensuring that you’re learning with a reputable driving school means that you know you’re in professional hands, and are more likely to be a safer driver overall.

What are the other costs on top of driving lessons?

Provisional driving licence

You cannot drive on UK roads without a provisional licence, which costs £34 online or £43 via post.

Theory test

You have to pass this before taking your practical test. It costs £23 to book online, and you may want to make use of resources like the DVSA’s Official Theory Test and Hazard Perception Kit app to hone your skills for the test, which costs £15 for a 30-day subscription.

Learner insurance

If you’re learning to drive in another’s car, you should take out learner insurance so that you’re protected in case an accident occurs.

Insurers will price learner insurance differently, and you may benefit from daily, weekly, or monthly packages.

Practical test

On a weekday, a practical driving test will cost you £62, rising to £75 on weekends and bank holidays.

Remember that you may have to retake the test more than once – the pass rate in the UK is only 50%. You may also have to pay for the use of your instructor’s car on the day of the test itself.

Finance your first car

Once you’ve passed your driving test, you’ll need to account for costs like insurance and road tax, as well as financing your first car. Find out your car finance eligibility and see how My Car Credit can help you to safely take to the road in your new wheels by contacting us on enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Financing a Second-Hand Car: 4 Options

Car Finance for First Time Drivers: A Beginner’s Guide

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

costs driving lesson insurance licence provisional theory test

How to Save Money on Car Insurance

Man on phone trying to save money on car insurance

Between rising petrol prices, soaring inflation rates and a myriad of other factors, running a car in the UK has never been more expensive. Many motorists pay more than £3000 a year to run a vehicle, a figure that underscores the importance of pinching pennies where possible.

Car insurance presents one of the best opportunities to save, with healthy competition between providers working in the favour of motorists. It does take a little groundwork, which is why we’ve put together an insider’s guide covering everything you need to know about how to save money on car insurance.

How much does the average Brit pay for car insurance?

According to the Association of British Insurers, the average motorist spends more than £400 per year on car insurance. Premiums can vary enormously depending on the type of car you drive, as well as your preferred excess. One thing’s for sure, there’s definitely room for improvement. Below we list the top strategies for how to save money on car insurance:

Drive a less powerful car

We get it. It can be very tempting to get behind the wheel of powerful cars like the Mazda MX-5, BMW M3 and Lexus LC Convertible. Even hatchback drivers enjoy serious horsepower thanks to models like the BMW M135i and Audi S3 Sportback. If you’re on a budget, models like the Ford Focus RS promise serious power, without an eyewatering price tag. That said, insuring powerful cars does come at a cost. This is because most insurers factor in how powerful your car is when putting together a policy. Generally, cars with more power are more expensive to insure.

Understand insurance groups

Most insurers assess applicants based on a variety of factors, then place them in one of around 50 groups. The power of the model is one of the most important factors used to categorise applicants, however other factors such as age, average cost of parts and repairs, safety features, security and bumper compatibility also come into play.

A rating panel fronted by organisations such as the Lloyds Market Association, Association of British Insurers and Thatcham Research sets the standards for each group. Driving a car that falls into one of the lower groups is a guaranteed way to save on vehicle insurance. For example, models like the Citroën C1, Fiat Panda and Hyundai i10 fall into Group 1 as they have small engines, readily available parts and are inexpensive to purchase new.

Higher up the scale in Group 10 are models like the Mercedes-Benz A-Class and Ford Focus C-Max. At the highest end of the scale, you’ll see luxury, ultra-powerful models like the Audi A6 and Alfa Romeo Stelvio. Motorists can expect to pay big premiums as vehicles of this calibre are fast and expensive.

So, you can save money on car insurance simply by driving a car that falls into a lower group. If you’re in the market for a new car or are considering switching to a less powerful model, get started and use our calculator to get a car finance quote in minutes.

Consider your no-claims discount

Insurers reward policyholders for safe and responsible driving. Unfortunately, this also means you may be better off paying out of pocket for small issues like fixing a scratch or replacing a broken window. This is because the cost of making a claim and forfeiting your no-claims discount may be higher than covering repairs yourself. It’s not always the case but it’s worth keeping in mind.

It’s always best to crunch the numbers and chat to your insurer before making a claim. They can help you decide what the best move is in terms of how to save money on car insurance.

Put less miles on the odometer

When it comes to saving on car insurance, driving less is one of the best ways to bring down your premium. Insurers assume that the less you drive, the lower the risk of a claim.

Opt for fully comprehensive cover

Insurance companies are smart and love to factor trends and patterns into their decision making process. Often, opting for a higher level of cover such as fully comprehensive will cost less than alternatives like third party only or third party plus fire and theft. This is because insurers know that people who choose low-coverage policies often make more claims. So, when browsing car insurance deals, it’s always best to compare fully comprehensive cover with other options.

Pay an annual premium

If you can afford to cover the cost of an annual premium, you could unlock great savings compared to monthly payments. You’ll sidestep the interest that insurers often build into monthly payment plans which can translate to significant savings.

Consider skipping extras

Many insurers tempt motorists with extras like windscreen coverage and the use of courtesy cars during repairs. These types of extras are convenient but can come at a cost. If you’re wondering how to save money on car insurance, skipping extras can be a savvy move.

As we mentioned earlier, many motorists find that the cost of making a claim for a minor issue like a cracked windscreen isn’t worth losing the benefits of a no-claim bonus. If this is the case, extras that cover minor issues may not be worth it. The best thing to do is assess your insurance policy carefully and decide what you really need.

How much can I expect to save on car insurance?

Using a combination of the above strategies, the average motorist can expect to save anywhere from £50 to £300 pounds on car insurance. Of course, there are no guarantees and the policies you’re eligible for will ultimately determine how much you can save on car insurance.

Want to know more about how to save money on car insurance? Give us a call today to chat to a friendly and experienced team member about unlocking savings. Every pound counts, and we’re here to help you get the absolute most out of your insurance policy. Get in touch by email or give us a call on 01246 458 810 to find out more about how to save money on car insurance.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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HP, Conditional, PCP: The Lowdown on Car Finance Options

Car Finance vs Personal Loan, what’s best for me?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car insurance insurance insurance groups save money

Car on Finance Written Off – What Happens Next?

Damaged grey car on finance that has been written off

If your car on finance is written off as the result of an accident, there are a number of things that you can do depending on the degree of damage.

It’s of utmost importance to contact your insurance and finance provider, as well as the DVLA, if you are in an accident and think that your car may consequently be written off. Depending on the severity of damage sustained, there are two main steps that you can take, as this post will explore.

What is a write-off?

When a vehicle is written off by an insurance company, it usually means one of two things. Either the damage is so extensive that the vehicle can’t be repaired, or the cost of the repairs required is higher than the vehicle’s total value. As such, a vehicle can be written off even when the damage doesn’t appear that bad – it just has to fit into one of these two categories.

Your vehicle can be written off whether you acquired it via car finance, or if you’re the outright owner.

The different kinds of write-offs

There are four main kinds of write-offs – if your vehicle fits into any of these descriptions, it’s likely to be written off.

Category A

This occurs when a vehicle is completely unsuitable for repair, and no body parts can be used for scrap material. It’s the most severe kind of write-off.

Category B

This is when the vehicle has significant damage to its body, and is therefore not suitable for repair. Usable parts can still be salvaged and used for resale or repairs.

Category S

Previously known as category C, this occurs when vehicles sustain structural damage such that it is unsafe to drive without repair. Depending on the degree of damage, it may be more cost-effective to purchase a new vehicle.

Category N

Previously category D, this is when there is no structural damage and subsequent impact on the vehicle’s function, but some cosmetic, electrical, or non-structural repairs may still be required. Vehicles are placed into this category when an owner decides not to repair it.

What to do if your car on finance is written off

Remember, if your car is involved in an accident that might result in its being written off, you need to contact your finance and insurance providers as well as the DVLA. This should be done as soon as possible, so that you can take the necessary next steps.

Once your insurance provider has placed your vehicle into one of the four above categories, you’ll be offered a settlement price. This is the amount that your insurer is willing to pay out for the vehicle, and will usually equate to the amount that the vehicle was worth at the time of write-off.

You can dispute the write-off decided upon by your insurer by entering into negotiation with them, or by contacting the Financial Ombudsman Service.

Your options for a written-off financed car

Once your insurance provider has established the write-off category into which your financed car falls, you can decide on your next steps. These will usually be either buying the car back and repairing it, or buying new.

Remember, if your vehicle fits into either category A or B, you will not be able to buy the car back to repair it, as it has been deemed unroadworthy.

Buying a new car

You can use the insurance settlement to purchase a new vehicle. You will still need to repay your monthly instalments of car finance on the written off car. Depending on the insurance payout, you may be able to use this money to clear the outstanding balance on your finance agreement, but this will depend on your finance provider. It’s always best to contact them to gauge whether they allow this or not.

Buying back the vehicle and repairing it

This only applies to vehicles in category S and N. Remember that you’ll need to keep up with monthly repayments whilst the vehicle is in for repair, and check whether your repaired vehicle needs a new insurance policy, MOT, or to be re-registered with the DVLA.

Car finance that isn’t a write-off

At My Car Credit, we provide crisis-proof car finance and unflappable customer service. Should the worst happen, we have a team on hand to help you with any queries. Or if you’re looking to finance a car to replace a write-off, you can use our car finance calculator to get you a no-obligation quote within minutes.

Rates from 9.9% APR. Representative APR 10.9%

Evolution Funding Ltd T/A My Car Credit

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Leasing vs Finance: What’s the Difference and Which is Better?

What is a Guarantor Loan?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 10.9%, annual interest rate (fixed) 10.87%, 47 monthly payments of £191.50 followed by 1 payment of £201.50 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,702, total amount payable £9,202.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

car damage damage categories insurance write-off

Is insurance included with car finance?

Crunch your numbers with My Car Credit

Rates from 9.9% APR. Representative APR 10.9%

Related articles

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Good

Fair

Poor

Bad

Require more help?

Unfortunately, having your car keyed is a common occurrence. ‘Keying’ occurs when someone damages your vehicle’s paintwork using a sharp object, like a key. It’s technically an act of vandalism, and if your car has been keyed, there are a number of steps you can take.

What to do if someone has keyed your car

Notify the police

Check your insurance cover

Gauge the damage

How to prevent a car being keyed

Finance a more secure vehicle

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

What is the ‘cestui que vie trust’ scam?

Find a car finance provider you can trust

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

You may think that the main cost to consider when booking driving lessons are the lessons themselves. Whilst they constitute the main bulk of the expense of learning to drive, there are other outgoings that you also need to consider when budgeting to learn to drive.

How much are driving lessons?

What are the other costs on top of driving lessons?

Provisional driving licence

Theory test

Learner insurance

Practical test

Finance your first car

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

Between rising petrol prices, soaring inflation rates and a myriad of other factors, running a car in the UK has never been more expensive. Many motorists pay more than £3000 a year to run a vehicle, a figure that underscores the importance of pinching pennies where possible.

How much does the average Brit pay for car insurance?

Drive a less powerful car

Understand insurance groups

Consider your no-claims discount

Put less miles on the odometer

Opt for fully comprehensive cover

Pay an annual premium

Consider skipping extras

How much can I expect to save on car insurance?

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair

Poor

Bad

Require more help?

If your car on finance is written off as the result of an accident, there are a number of things that you can do depending on the degree of damage.

What is a write-off?

The different kinds of write-offs

What to do if your car on finance is written off

Your options for a written-off financed car

Car finance that isn’t a write-off

Rates from 9.9% APR. Representative APR 10.9%

Related articles

Excellent

Good

Fair