We know there are times when things might be a little unclear. Thus, we’ve combined all the questions that we are asked most often and answered them right here. Browse through these to see if maybe we’ve answered yours, if not you can always chat to us directly online or visit our contact us page for all our contact information.
Can my age affect my premium?
Experience has shown that driving risk reduces with age; older drivers have fewer accidents than young or new drivers. So we charge premiums according to a sliding scale, where an 18-year-old driver will pay the highest premium and the premium loading reduces over the years. If you want to know more about how the premiums scale works call Budget on 0860 25 25 46.
Why does my premium increase every year even though the value of my car depreciates?
You are not only covered for the theft of your vehicle but also for the repair of your vehicle. The cost of repairing your vehicle and parts used increase every year, so your premium unfortunately has to increase in line with these costs. Budget does, however, take the depreciating value of your vehicle into account when reviewing your premium.
Is it true that my marital status can affect my premium?
Yes. We have found that married or co-habiting policy holders pose a lower risk than single or divorced people do. This is possibly because single people often go out, are on the road more, and leave their residences empty more often.
If I cannot afford my premium this month, can I pay double next month?
Sometimes, not often though you may find it difficult to meet the premium payments on the first working day of the month. In order to assist you if you do find yourself in this position, Budget can set aside a “Special Deduction” on a date which is more convenient. However, if the premium is not received by this date, you will have no cover for that period for which the premium was due and the policy will lapse. This means that, although the contract is still in force, there is no cover for that period. If we do not receive payment for that month, you unfortunately do not have cover.
Can I insure two separate addresses on one policy?
No. You would have to insure the addresses on separate policies. This is because different addresses present different risks and you would pay different premiums for each of the addresses.
What do I need to do to cancel my Budget policy?
A Budget policy allows you to cancel without any period of notice, but you can give notice to cancel on a future date. You can also give this notice of cancellation over the telephone. We will confirm the cancellation in writing.
What factors are taken into account in determining what premium I pay?
At Budget, numerous things are taken into account, for example, the make and model of your motor vehicle, where you live, where your vehicle is kept at night, who the driver of the vehicle is, what purpose your vehicle is used for, and your previous claims history. Because your premium is calculated on these facts, amongst others, it is very important that you are honest when answering these and any other questions. If you are not sure about an answer, rather tell the consultant this and get back to them later. It is important to be honest in your dealings with your insurer or broker, including when you claim. Fraud costs the insurance industry millions every year and in turn costs you, the honest consumer, in increased premiums. Remember fraud ranges from things like claiming for a leather jacket you never had in the first place after a burglary, to claiming for a car that was allegedly hijacked when in fact it was actually sold. Fraud can also lead to a criminal record as most insurers prosecute customers who have committed fraud.
What is an excess?
An excess is the amount you have to pay in the event of a loss and is the uninsured portion of your loss. The excess serves to prevent customers from submitting minor claims as well as fraudulent claims and assists in keeping premiums down. Let’s use motor excess as an example. When you submit a claim you will have to pay an excess, irrelevant of who was to blame for the accident. It is important to read your policy documentation regarding excesses as there may sometimes be additional excesses depending on the facts of your claim, e.g. who was driving your vehicle at the time of the loss. In most cases we offer a flat excess as opposed to an excess that is a percentage of your loss. We will also do our best to try and recover your excess from a guilty third party even though there is no legal obligation for us to do so. This is a service Budget offers to customers at no extra charge.
How can I reduce my excess?
You can definitely reduce your excess. The way to do this is by increasing your premium. You can also reduce your premium by increasing your excess.
When my vehicle is damaged in a collision, can I have it repaired at the panel beater of my choice?
Our policy stipulates that we will repair your vehicle using a supplier on our panel. Our motor body repairers guarantee their workmanship and issue a lifetime guarantee on the repairs. This allows us to constantly monitor the quality of the repairs carried out by the repairers that we work with. However, should you insist that you want your vehicle repaired by a panel beater of your choice; we will give you a cash settlement in lieu of the amount that it would have cost us to repair your vehicle. In such an event, we can obviously not guarantee the repairs of the vehicle.
Why do I need to install a tracking device in my vehicle?
We strongly recommend that you install a tracking device in your vehicle because it increases the chances of recovering your vehicle if it is stolen. Because these chances are increased, your risk decreases, and this means that when you claim for a stolen vehicle your theft excess will be much lower.
Am I entitled to a pro rata refund if I cancel my policy in the middle of the month?
Our policies are payable monthly and you pay for cover a month in advance. We are therefore not able to refund you if you cancel the policy during the course of a month.
If someone drives my vehicle without my consent and is involved in an accident, will you still pay my claim?
Yes, provided that you lay a criminal charge against that person with the police, within 48 hours. You may not withdraw the charge.
Why do I have to pay an excess if I was not at fault?
An excess is payable whenever a claim is submitted and is the first payment that needs to be made in the event of a claim – regardless of whether you are guilty or not. The administrative cost of a claim is the same, regardless of who is at fault. If you are not at fault, you can claim the amount back from the other party. Unfortunately, this can take a long time, especially if the guilty party isn’t insured. Our legal recoveries department will do their utmost to recover your excess, at no extra charge.