Car Insurance guide from specialists
Every person who owns a car insures his car not only because it's a legal requirement if you want to drive your car on the road, but also for peace of mind. If you don't have it you will be putting yourself in danger of driving illegal as well as being at risk for uninsured damages in case of an accident.
What type of cover to choose?
There are three main types of car insurance – comprehensive; third party, fire and theft; and third party only.
The minimum insurance cover required by law is third party only. It insures the passengers in your car and any damage you have caused to people or someone else's property outside your car.
Third party, fire and theft (TPFT) provides the cover listed above as well as for cases of thefts or fires. This is a cheaper option than comprehensive car insurance and a bit more expensive than the third party only but will provide peace of mind for emergency situations.
Comprehensive includes cover for all the cases listed above plus some extras such as accidental damage, glass replacement, medical expenses, loss of personal belongings inside your car and more. These features are different for all the car insurance providers and they can be added or removed to your personal preferences.
How to determine the excess
Each insurance policy has an excess – this is the amount you will have to pay yourself in case of an accident towards repairing or other costs. Some companies have compulsory excess amounts for young and inexperienced drivers. Choosing a lower amount on your excess will result in a higher premium. There are different levels of excess with the minimum starting at £100.
No claims discount bonus
No claims discount is a certificate given to drivers as a proof that they haven't made a claim for a certain number of years. If have been claim-free for 5 years or more and you can prove it, you will receive a discount of about 60% off the price quoted in the beginning.
Factors affecting the price of your car insurance
- Your car – if you drive a sports car, you will be classed as more risky and therefore expect a higher premium. If your car is a Nissan Micra – you will be given a lower priced quote.
- Where is your car kept – on a driveway, in a garage, on the road. The more secure the better for the price of your policy.
- Driver's experience
- Area – depending on the rate of crimes in the area regarding car thefts, expect a change in your premium.
- What the car is used for – if you travel more than 10,000 miles, you will receive higher priced premiums.
Where to find insurance?
First place to look for is your current insurance provider if you have one. They will try to keep you as a customer and will offer you a competitive quote. Still give a quick look to quotes from other providers compared on sites as CompareTheMarket, GoCompare and Confused. This way you will know what price to ask for and what you can get for your money.
You may also want to read about: Cheap Car Insurance