Car insurance, reduce costs but maintain protection
Car insurance is a legal requirement in for all drivers and their cars in the UK. Costs are continuing to rise. How can you reduce some of these expenses and still get the best car insurance coverage?
First, get multiple quotes from the Internet and your local car insurance broker. You can shop for different types of quotes from a direct-sell insurance companies and offline and online brokers.
Car insurance that is cheapest isn’t always the smartest move. Ask yourself, is the company financially secure? Are they reputable and will they pay out if you have to make a claim.
The first piece of the policy is almost always third party liability insurance. If you are unlucky enough to be involved in a car accident that is your fault, third party car insurance will pay for the damage and losses incured by the other driver. You will, however, be responsible for the cost of repairs to your own car.
Comprehensive car insurance will cover all damage repair costs to all cars involved in an accident.
Car insurance varies on car types. Coverage for a sports car is very different from insuring the family saloon.
If you are looking to buy a car, consider buying a car that “looks good” to insurance companies. For instance, insurance companies know what kinds of cars are prone to problems. They also know what kinds of cars are most often stolen. If you haven’t purchased your car yet, find out what cars make this “good list” among car insurers.
Consider how much coverage you really need to buy and the price each of these coverages will pay. Do you require comprehensive car insurance or just third party insurance?
If your car was written off, would you be able to afford to replace it? If not, you will want comprehensive car insurance.
The decision to buy this coverage is usually based on the value of your car.For instance, if your car is worth less than £1,000 is it really worth buying comprehensive car insurance?
If you own a £35,000 car though, it would most certainly be worth it to pay an extra few hundred pounds annually to insure that your car will be replaced if you get in a serious accident.
If you’re driving a used car from 10 years ago, then choosing third party car insurance instead of comprehensive cover can usually give big savings.
Run through various scenarios such as if I were to write-off someone else’s car, will my insurance cover it? How much will I have to pay out of my own pocket?
Paying a higher policy excess can also keep your policy costs down. Remember, the excess is what you pay out of own pocket when making a claim.
Buying a low mileage car and insuring with a good driving record, will all help bring insurance rates down. Don’t speed, don’t drink and drive and you’ll save.
Single, young males under the age of 25 get the short end of the stick in this deal so if you fall into this category make up for this price increase by purchasing a more sensible vehicle. Consider delaying the purchase of that Golf GTi until after you’re 26 and married.
Car Insurance experts recommend that you review your insurance policy often and thoroughly, don’t just accept your current insurer’s renewal quote. Get a couple of other car insurance quotes to ensure that your current insurer is still competative.
Many car insurance companies offer discounts for anti-theft devices (such as Thatcham approved immobilisers) and advanced driver-training courses.
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