Do you have a tyre insurance policy or a guarantee?

In the world of insurance there are in fact two different types of policies and to make matters worse in most cases they are called the same name.

There are however massive differences in how you are protected.

The first type of policy is the same as the policies that you buy when using our system. You pay a premium for your tyre insurance and then your policy is insured with an underwriter. This means that should anything ever happen to us or the underwiter you are protected not only by the Financial conduct Authority but also by the Financial Services Compenstaion Scheme.

We hasten to add that we are not planning anything untoward to happen and are in fact in the process of our third stage of expansion. But no-know ever thought for a milli second that some of the UK's most well respected financial instituitions where going to have problems but they did. So in an uncertain world it is always better to make sure that all bases are covered.

This type of tyre insurance is also inline with our ethos of ensuring that our customers remian fully protected come what may.

The second type of insurance is not so well protected. Instead the company or business that you buy your policy from does not reinsure your policy. Instead the premium you pay goes into a big pot of money. This pot of money is then used to pay for tyre insurance claims as and when they happen. This form of insurance is therefore not as stable as should anything ever happen to your tyre insurance provider the pot of money will no longer be there to settle claims. Effectivily your premium goes to pay the claim of the next policy holder.

Some companies still operate this form of guaranteed backed insurance and even some large garage groups.

That said at Tyre isnurance 123 we felt that a re-insurance approach was the fairest option, as it offers complete peace of mind. No matter what the furure may hold your policy is safe. Again we stress that being part of Aequitas, we have gone from strength to strength and have just started our eighth year online and have major plans to expand further.

But should the worst ever happen or for example, if Aequitas was bought out by an insurance company or conglomerate your policy and the terms and conditions of your tyre insurance policy which you have agreed to remian unaffected.