Isn’t that new car feel fantastic? But then comes the bitter truth: you need car insurance. It is against the law to drive without insurance in the UK, and getting into difficulties is an understatement. A crash without coverage means severe money trouble. In this article, we tell you how to get the best car insurance. We will discuss type of insurance, factors that affect the price, and how to get a bargain.
Understanding Car Insurance Types in the UK
Various levels of auto insurance give you various types of protection. The one that fits properly for you will depend on your needs and budget. So let’s discuss common ones.
Third-Party Only
Basic or Third-Party Only (TPO) will cover any damage you cause to another person or their property. It does not include any damage to your car. TPO might be alright for an older car that is not worth much in repairs.
Third-Party, Fire and Theft
Third-party, fire, and theft (TPFT) build upon TPO. Along with covering other parties’ damages, it also covers your car for theft or fire damage. If you worry about those specific risks, TPFT could be a great option, adding a little extra peace of mind.
Comprehensive
Comprehensive insurance is the most thorough type of car insurance. Comprehensive insurance covers damages done to your own car, even when you are at fault. This includes damages caused by accidents, vandalism, and weather. Additional benefits are most of the time included, like windscreen coverage and injury to others. Surprisingly, comprehensive cover can sometimes be cheaper than the others, so be sure to compare quotes!
Factors That Affect Car Insurance Costs
Numerous aspects can change the cash outlay you would incur in insurance. Some pertain to you, while others are vehicle-related, and still, others are local. Here is a breakdown.
Driver-Related Factors
Your age matters here. More often than not, younger drivers pay higher premiums as they are considered riskier. Driving experience matters too; the longer you have been driving without accidents, the lesser could be your premium. Your driving history counts; accidents or convictions will always pull your price down. Jobs matter; some jobs are considered by insurers to be higher risk. Most importantly, for every year you drive without making a claim, you earn a no claim bonus that can greatly reduce your insurance cost.
Another thought: take an advanced driving class. This sends a strong signal to insurance companies about you being a safe driver. Hence, your premium figure might go down.
Vehicle-Related Factors
The make and model of your car really do matter. Sports cars and luxury cars typically have higher insurance premiums. The car’s age and engine size also factor into it. The older the car, and the bigger the engine, the more expensive it may be to insure. Security features such as alarms and immobilisers could also drive down insurance costs. Any modification done to the car, for example, fitting a spoiler, could increase your premium. Cars are grouped for insurance purposes, and this “insurance group” provides inroads for insurers to price your policy.
Location, Location, Location
Your residence will affect your insurance cost. Living in an active city will mean a higher price. If you have a garage, your premiums will be less since you will not need to park on the street. The busier the area, the higher the insurance usually is.
Thus, if traffic is non-existent, the lower your rates for the rural dweller as compared to the one in the crowded downtown.
Comparing Quotes for Car Insurance
To locate the best deal, comparisons are vital with any car insurance. Never take the first quote handy; go shopping. Different companies provide varying rates.
Using Comparison Websites
The comparison websites give you the opportunity to get quotes from heaps of other insurers in unison with your searching for the best insurance in the market. You can check out Comparethemarket and GoCompare or MoneySuperMarket. These sites are most effective when you provide proper information about yourself and your car. Make sure and compare similar policies (covers, excess, etc.) It is a wise decision to check more than one comparison site, as some insurers might not be present on all of them.
Getting Direct Quotes
Don’t only go to the comparison sites. Some insurers (like Direct Line) aren’t listed on there. Take the extra time to get quotes from these car insurance companies directly so you can make sure that you’re covering all your options. It may take a little longer but can be worth it.
Know the Policy Wording
Always read through the small print before you buy. Pay special attention to words like ‘excess’ (the amount you will have to pay if you make a claim). Check for any exclusions (things that will not be covered by the policy). Know the limits of your policy (the maximum amount that will be paid out by the insurer).
Check your mileage limits to be sure. If you drive more than you estimated, your premiums or even your insurance might be impacted.
Reducing Your Car Insurance Premiums
Are you interested in saving money on your car insurance? There are definitely some things you could do.
Increase Your Excess
Raising your excess should give you a lower premium. But remember, if you make a claim, you’re going to end up paying more. Make sure you choose an excess that is affordable for you.
Improve Your Car Security
Fitting alarms, immobilizers, or trackers lowers the chances of a car being stolen. This may also attract lower insurance premiums. Insurers also love adding reliefs for the cars with upgraded security measures.
Conclusion
Buying car insurance in the UK doesn’t have to be painful. Know the different types of cover. Familiarize yourself with the factors that influence the price. Compare for the offers which suit you. And always read the fine print. Now start comparing quotes to find the perfect car insurance for you!
