Car Insurance Explained

Here are some tips to help you to get the cover you need for your motor at the best possible price.

  1. Check the Overall Cost of Insurance

    There are many different policy types and other factors that contribute to the overall price of your motor insurance. You need to take into account the type of cover you receive, as obviously comprehensive is more expensive, yet third party only does not cover you for every eventuality.

    Be sure to check the amount of policy excess, both compulsory and optional, which may drive down the cost of your premium but will be more expensive in event of a claim. It is also important to consider the pros and cons of paying annually or monthly; the latter is almost always more expensive overall with interest and admin fees.

    Other things to consider are added charges for such things as courtesy cars and legal expenses if they are not included in the original policy package. Everything down to your age, your address and your occupation can affect the price of your car insurance, which is why:

  2. Do Your Research

    Don’t just settle for the cheapest price that pops up at the top of the search comparison site. The cheapest option isn’t always the best, and the best isn’t always advertised on one site. Or any site, for that matter. Some of the best (and perhaps for you, cheapest) car insurers do not show up on price comparison sites. Do your research.

  3. Use a Reputable Insurer

    Just because a policy quotes you cheaper than everyone else, doesn’t mean they are offering the best service. Often the cheapest option comes with a host of added fees or an extortionate excess, or do not cover all the things you require.

    Make sure you use a well-trusted and well-reviewed company and look into their business rather than just their quote.

  4. Added Incentives and Discounts

    Often companies will offer loyalty incentives for their customers, such as chances to win big prizes or discounts if you choose to purchase your pet or home insurance with them. If a company looks after their customers they will keep coming back.

    Likewise, if there are multi-car discounts you may be swayed, and multiple drivers on a policy can often drive the cost down. Be wary of adding younger, more inexperienced drivers though as they are likely to increase the premium.

  5. Consider a Black Box or Insurance Limits

For younger and less experienced drivers, to help lower the cost of their premium, choose a policy that encourages the use of a black box, or ‘telematics,’ in order to monitor the use of the car that is being covered.

These policies encourage and ensure safer driving and reward those who practice as such. Other options that can include the use of telematics is to set limitations on the time the car is in use, for example from 10pm-7am, which can lower the premium and ensure safer driving.

The most important lesson is not to rush into your decision and do your research!

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