Third Party Motor and Third Party Car Insurance
If we drive a car on the public roads we need car insurace.
Motor insurance policies can vary wildly in price as it is dependant on many factors. Where the car is kept, the driver(s) occupation, the age of the driver(s), the annual expected mileage, the occupation of the driver and of course the type of car. All things being equal, a 50 year old married man who drives 5000 miles per year and stores his family saloon in a garage overnight will pay a much lower premium than a 19 year old man who drives a “hot hatch” and parks it on the public road.
What types of car insurance are available?
The two kinds of insurance are Comprehensive Motor Insurance and Third Party Motor Insurance. Comprehensive motor insurance covers damage to the vehicles belonging to the policy holder and any third party where the policy holder is at fault. Third Party motor insurance only covers the third party.
Diamond car insurance
Direct Line car insurance
AA car insurance
Churchill car insurance
Norwich Union car insurance
Privilege car insurance
Elephant car insurance
I have exactly the same car as my neighbour, but my third party car insurance policy costs 50% more. Why?
Many factors affect the cost of an insurance policy. You may have exactly the same car as your neighbour, but that doesn’t necessarily mean your policy will cost the same.
A few factors affecting the cost of your policy include, drivers age, age of any additional drivers, whether you are insured to use the vehicle in connection with your business (in addition to standard commuting to and from your normal place of business), the amount of miles you travel each year and your occupation.
How can I get cheap third party car insurance?
There are various things that you can do to reduce your third party car insurance premium. You can elect to increase your voluntary excess. Most motor insurance premiums have a compulsary excess, but if you agree to a voluntary excess as well it usually reduces your premium. If you only travel 5,000 miles per year, tell your insurance company. Informing the insurer that you travel limited miles within a year usually makes your motor insurance premium cheaper. Don’t include your 19 year old brother who has just passed his test. It might seem like the brotherly thing to do, but having a young, inexperienced driver on your insurance is a sure way to increase the cost. Garage your car overnight. A car locked away in a garage overnight is less likely to be stolen or damaged. This should knock a few pounds off your premium.
But above all, be a safe driver. A full “no claims” discount can knock well over 50% off your premium.
What is a “no claims” discount?
As a reward for not making any claims against your motor insurance, insurance companies will give you a “no claims” discount. For example, if you have not made an insurance claim for 12 months, your insurance premium may be reduced by 15%. The percentage discount will continue to rise the longer you go without a claim up to a certain limit (usually 5 years). You will then have what is known as a maximum no claims discount.
If you do make a claim once you have built up a “no claims” discount, your discount will usually be reduced (unless you have a protected no claims discount).
The exact way that this works will depend on your particular policy, but as an example, if you have 5 years no claims discount and you then make a claim, your no claims discount may be reduced to 3 years.