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Car insurance help and guidance
Whether you’re new to Halifax Car Insurance or you're looking for more information and support, you've come to the right place.
Halifax Car Insurance is underwritten by a panel of insurers and is arranged and administered by BISL Limited. When getting a quote online you’ll be taken to BISL Limited’s online site with a new privacy and cookie policy.
What support is available for existing customers?
Car insurance frequently asked questions
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In really simple terms, the money paid by motorists for car insurance contributes to a collective fund. If an insured driver has an accident and makes a valid claim, the money needed to complete any repairs, or cover any other damage, is paid out of the fund.
The cost of car insurance, also known as a premium, can go up and down over time. The main thing which contributes to that, is the annual number of claims impacting the value of the insurance fund.
Most insurers offer three types of cover:
- Third party – this is the most basic level of car insurance, only covering damage to someone else’s vehicle or property if you cause an accident. It doesn’t cover your own car or property
- Third party, fire and theft – the next level of insurance also covers your car for accidental or criminal fire damage, damage resulting from theft or attempted theft, and if your car is stolen
- Comprehensive – this is the highest level of car insurance, also covering any damage to your car and property if you’re involved in an accident
The cost of your individual insurance premium can vary, depending on a range of factors, including your age, location, driving experience and the car you’re looking to insure.
You might be able to reduce the annual cost by adjusting the amount you’ll contribute out of your own pocket if you have an accident. This is commonly referred to as car insurance excess.
- Increasing your excess amount could reduce your annual premium
- Reducing your excess might increase your car insurance premium
Optional extras might also be available, such as breakdown cover or legal protection, which you can add to your policy for an additional cost to your annual premium.
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When choosing car insurance, cost is one factor. But it’s also important to make sure the cover you buy meets your individual needs.
The most basic requirement is getting cover so that you can drive legally. But car insurance also offers peace of mind and financial protection.
Depending on the level of cover you choose, insurance will help to cover the cost of any damage caused in an accident. That could include medical expenses and addressing any damage to vehicles and property.
Most insurers offer three types of cover:
- Third party – this is the most basic level of car insurance, only covering damage to someone else’s vehicle or property if you cause an accident. It doesn’t cover your own car or property
- Third party, fire and theft – the next level of insurance also covers your car for accidental or criminal fire damage, damage resulting from theft or attempted theft, and if your car is stolen
- Comprehensive – this is the highest level of car insurance, also covering any damage to your car and property if you’re involved in an accident
The cost of your individual insurance premium can vary, depending on a range of factors, including your age, location, driving experience and the car you’re looking to insure.
You might be able to reduce the annual cost by adjusting the amount you’ll contribute out of your own pocket if you have an accident. This is commonly referred to as car insurance excess:
- Increasing your excess amount might reduce your annual premium
- Reducing your excess could increase your car insurance premium
Before you choose, think carefully about how much you could realistically afford to pay out if you had an accident.
Optional extras might also be available, such as breakdown cover or legal protection, which you can add to your policy for an additional cost.
When you’re browsing for car insurance, it could help to:
- Have a copy of your existing policy, especially if you’re looking for equivalent cover
- Think about the type of cover you need, based on the way you use your car
- Have proof of any no claims – this could help you to secure a discount
- Have your driving licence and car registration number to hand
- Know the cost of your last premium, just for comparison
- Work out your annual mileage for the year ahead
Car insurance is one thing you hope you’ll never need to use. But choosing a policy which suits your needs will offer you peace of mind should anything happen.
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If you can’t remember which insurer your policy is with, there are a few ways to find out:
- Search your email inbox – most insurers will send you a confirmation and important policy details by email. Try searching for ‘insurance’, ‘car insurance’ or even your vehicle’s registration number
- Check your bank statements – look out for payments you’ve made to an insurance provider
- Check that pile of post – you might have received letters from your car insurer
- Do you use price comparison websites? You could sign into your profile to retrieve past quotes. This could help to remind you
- Contact the Motor Insurance Database (MID) – you can check that your car is insured online, then submit a request for more details. You’ll need to give some information to prove your identity
If your policy is due to expire, your insurer will usually contact you at least 21 days before your renewal or policy expiry date.
If your car is uninsured, the Continuous Insurance Enforcement (CIE) scheme will get in touch. The Driver and Vehicle Licensing Agency (DVLA) might also send you a penalty notice.
It’s a legal requirement for your car to be insured and taxed if you’re using, or even just parking a car on public roads. In addition to fines, if you’re found to be uninsured you could be issued penalty points on your driving licence, be disqualified or even face prosecution.
Learn more about driving offenses and penalty points at gov.uk.
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When you’re shopping for insurance, you’ll be asked to estimate the value of your vehicle. This is usually the amount you paid for the car, minus any potential decrease in value since you’ve had it – also referred to as depreciation.
There are lots of websites which offer free valuations which could give you an idea, including Autotrader, The AA and some price comparison websites.
Just make sure you factor in any modifications your vehicle has which might increase its value, such as driver assist or entertainment packages. You should also tell your insurer about these.
If you were to have an accident and your car couldn’t be repaired, depending on the type of cover you have and who was at fault, your insurer might only pay out the market value of your car.
The value of your car could also influence the cost of your premium, in combination with other factors like your age, the insurance group for your vehicle, and so on.
If your car is valuable, insurers might dictate a higher excess amount which you’ll need to pay out of your own pocket if you have an accident.
Resist the temptation to underestimate the value of your car though, even if it would help you to save money on your insurance costs. Worse than not receiving your car’s true value when you’ve had an accident, it could invalidate your insurance if you don’t give accurate information.
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The number of miles you’ll drive in the coming year is one factor which can affect the cost of your car insurance premium. In simple terms, miles equal potential vehicle wear and higher risk of incident.
If you overestimate your mileage, you’ll be paying a higher premium than you really need to.
If you underestimate your mileage, you risk:
- increased premiums
- your policy being cancelled
- having a claim rejected, or partially paid
- your policy being invalidated, meaning you’re no longer covered
So, how do you make sure your estimate is as accurate as possible?
Think about your weekly driving patters, including:
- the distance you travel to and from work
- shopping or running errands
- social trips
Once you’ve worked out a number of miles per week, multiply that by 52, then add a bit extra to account for things like spontaneous days out, or holiday travel.
If you’ve been driving for some time, you might already have an idea about the number of miles you drive in a typical week, month or year.
Your mileage is recorded on your MOT and car servicing certificates, so if you’ve got the last two to compare, that could also offer an indication on your annual mileage.
If you know your circumstances are going to change in the near future, you might want to factor that into your calculation. For example, perhaps you’re starting a new job closer to home, so you won’t be driving as far each day.
Whenever it happens, it’s important to let your car insurer know about a change in your circumstances which might affect your cover.
If you’re an existing Halifax car insurance customer, you can access and manage your policy online at any time using My Account. This includes the option to tweak your cover.
If you’d prefer to chat to us by phone, call: 0344 209 0471
Speak to a representative Mon-Fri 8am-8pm, Sat 8am-6pm, or 10am-4pm on Sun and bank holidays.
Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.