Seven Things To Look For When Choosing Car Insurance

When looking for car insurance, there can be a lot of information to take in, and the process can be confusing, especially if it is your first time. You want to find the cheapest deal you can and ensure that you are covered if you get into an accident or your car is stolen. Here are seven of the primary considerations you should think about when selecting your car insurance.

 

What type of insurance do you need?

Each level of car insurance will come with higher costs, but you are covered in more situations in return, so you need to decide how much you are willing to spend. The cheapest insurance level is third-party and is the minimum insurance that you are legally required to buy. Third-party insurance covers accidental injury to other people and their property, meaning that you will not have to pay the repair costs if you are in an accident. In that case, you will be covered with this additional policy, and it is strongly recommended that you consider it, as the cost of these potential eventualities could be steep. The final policy type for car insurance is comprehensive cover, and it covers all the above plus financial help if your car is written off.

 

What is covered in your policy?

These three options look relatively straightforward but be aware that you should still look at each policy's details before you buy it. Many people end up in a situation where they are in an accident and realize that their insurance does not cover them. Comprehensive cover is straightforward to get confused about, and you need to be aware that many providers will charge extra for actual comprehensive cover. Many policies may not include breakdown cover, theft of gadgets in your car or courtesy cars unless specified, and often come with an additional cost. Making this error could be costly if you find yourself liable for damages you were not prepared for.

 

Can you take advantage of any discounts?

When you are looking for car insurance for the first time, always take the time to see if there are any offers or discounts available by checking a website like https://www.moneyexpert.com/car-insurance/. Car insurance is a very competitive industry with many people shopping around, which means that there are often at least one or two companies offering significant discounts to persuade customers to switch. Check for deals the first time you buy your car insurance and each year when your renewal period is due.

No-claims discount: if you have been with an insurer for several years without claiming, you will build a no-claims discount, with your policy's price likely reducing each year. Make sure to take advantage of this, with the deal will increase for around five years until it caps out.

Multiple policies: if you have several vehicles or other types of insurance, you may negotiate a better rate by consolidating them with one supplier. Home insurance, car insurance, and life insurance can all be taken out with the same company, for example.

Online discounts: by just searching around, you will likely find discounts being offered year-round that you can take advantage of.

Excluded drivers: another way to reduce your quote is to specify that no one under 25 can claim your policy, as they are statistically the most likely.

 

Is there variable excess?

The excess on an insurance policy is the amount that you will need to pay on a claim before the insurer begins to pay out themselves. When comparing insurance deals, you will find that higher excess policies will have lower monthly costs, but you will then need to pay more if you ever claim through your insurance. Also, be aware that not all excess is the same, and it may be variable depending on who is driving. For example, some insurance will have a different excess for non-nominated drivers, younger drivers, or less experienced drivers.

 

Would you like market value or agreed car insurance?

When you take a comprehensive insurance policy, you will need to decide if you want the amount your car is worth measured against the 'market value' or an agreed value. The market value is a standard amount based on averages, while an agreed amount is arranged between yourself and the policy provider when you buy the insurance. The market valued coverage is the standard agreement and is also the cheaper of the two options, but you may find that the amount the 'market' values your car is less than what you would expect. An agreed insurance policy will guarantee that you get the payout you wish your vehicle is written off, but the monthly payments will be significantly higher.

 

Are you going to modify your car?

If you are considering making modifications to your car, it will be important to understand how this will impact your insurance policy. Modifications can be anything from changing the horn's sound, changing the suspension, or customizing your car's paint job. These will all impact your premiums and could even mean that insurers will refuse to insure you at all. It is recommended that you contact your insurance provider before making any modifications to ensure that they will cover your car still and how your policy may change as a result.

 

Will you be driving overseas?

If you live in the UK and plan to drive in the EU, most insurance policies will cover you at the most basic level as standard. More expensive comprehensive packages will offer your full insurance for a limited amount of time, often between 60 to 90 days, which will cover you for an extended trip. If you drive outside of the UK for more extended periods, you will likely need to take out a custom policy that covers you beyond the third party.

With these details in hand, you should be well equipped to choose an insurance policy covering all of your needs for a reasonable cost. Taking the time to research all offers on the market will go a long way to save you surprise expenses in the future. 

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