All The Facts About Car Insurance

Finding the right policy and the cheapest insurance cover can be a tricky process; drivers use the Internet, by telephone, read magazines, watch TV advertisement to get information on savings and offers on car insurance.

Owning and driving a car is risky both for yourself as well as others. When a traffic accident happens, damage, injuries, loss or all of these factors may be inflicted upon you and others. Damage and loss of your property may also occur. Fire, theft, vandalism and natural disasters are other possible risks.

Car Insurance protects motorists and drivers against liability in the event of accidents they may cause. It can also provide cover for the motorist’s own vehicle.

Many different types of cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party’s property, but does not provide any cover for the individual’s own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties. The minimum legal requirement for car insurance to drive in the UK is Third Party Only.

The 5 steps that follow will be of help to you in finding the cheapest deal:

STEP ONE: EXCESS
Voluntary excess – accepting a higher voluntary excess will be the easiest thing for you to do in order to cut your insurance premiums.  An insurer’s standard excess may be £100; but if you meet the first £250 of any claim, you’ll see a reduction in your premium.  This is simply because you are more of the risk so you get a discount by your insurance company.  This however is a gamble, insurer should be aware that they may have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.

STEP TWO: SECURITY
Fitting a security device is one way of bringing about a reduction in insurance premiums.  Many insurers advise insurer’s to use Thatcham rated security equipment, usually minimum of an alarm.If you live in a high-risk area that is known for car crime then fitting an extra security such as steering lock makes a lot of sense.  This will save you money when your insurance renewal is due and gives you extra peace of mind.

STEP THREE: NAMED DRIVERS
That your premiums become cheaper or costlier after adding a named driver to your policy depends upon the named drivers age, sex and driving record. When adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is a female.

STEP FOUR:  ANNUAL MILEAGE
If your annual mileage is, 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions, as some insurance companies do give discounts for restricted mileage. However many insurers won’t offer this option as standard but will agree a discount if you ask.

STEP 5 - SHOP AROUND FOR GOOD RATES
The biggest potential savings come from shopping around. This has become so much more simple with the explosion of the internet. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s).

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