How to get the most from your car insurance without paying the earth.
Car insurance not only provides you with financial cover if your car is damaged in an accident, involved in a fire or is stolen, but is also a legal requirement, without which you are unable to drive. If you do not have cover in place and are involved in a car accident you will not only be in serious trouble with the police (as you will be driving illegally) but will also have to pay for any damage to your car, damaged to any other cars or property involved and also compensation for any injuries sustained, so having up to date car insurance is essential.
In the UK you are insured to drive a specific car, although policies are available which allow you to drive additional cars with the owner's permission. The majority of car insurance providers offer 3 main levels of insurance which differ in the amount of cover they provide, the associated benefits and also the cost of the associated premium.
3rd party is the most basic form of car insurance and simply covers damage you caused to any other cars or property during an accident. 3rd party, fire and theft provides a higher level of cover and although it will cover your car if it stolen or involved in a fire, it will still only cover the cost of damage to other peoples (3rd party) property sustained in an accident. Fully comprehensive cover is the highest level of car insurance available and will pay out if your car is stolen, involved in a fire or damaged in an accident and will also cover any 3rd party damage sustained.
Car insurance premiums are calculated using 'risk' statistics that, based on a number of variables, predict how likely an individual is to make a claim on their insurance. Factors taken into consideration include gender, age and driving experience, annual mileage, type of car, size of engine and location to name a few. By building a no claims discount of increasing the excess amount you agree to pay on a claim it is possible to lower the cost of your car insurance premium.
It is worth obtaining quotes from several different insurers as each insurance provider will have a different claims history and so is likely to charge different amounts for cover. Before committing to a car insurance policy, it is important to check that you are happy with the level of cover provided and its associated benefits and features so that you are able to drive with the confidence that should the unexpected happen, you will be fully covered.
