Even old bangers need some insurance
Getting motor insurance is a legal requirement if you have a car or other motor vehicle. The good thing is, though, that there is a lot of competition between insurers in the car market so by shopping around, you should be able to get a good deal. How to choose
Choosing the right car insurance is about deciding what kind of cover you want and then shopping around for the best price you can get for that policy. So...
Step 1: Decide what cover you need
With insurance, cheapest is not always the best. Read the policy carefully to make sure you have cover for all eventualities. Look at the excesses and exclusions carefully. A cheaper policy could be hiding a high excess and limited cover. Also, some insurers no longer include ‘Driving Others Cars’ as standard while others don't include a courtesy car. If you regularly drive abroad check the European cover limit. Some car insurance polices include this cover as standard, others may charge you extra for it. There are three basic types of motor insurance: - Third party fire and theft (TPFT) – this covers you if claims are made against you for injury to their cars or persons. It also covers you if your car or person is damaged by fire, or your car is stolen.
- Fully Comprehensive – This is the same as TPFT and then some. This covers any medical expenses, personal belongings and personal accident cover.
- Third party only – This only covers any claims made against you by other people.
The type you go for will depend on how flush you are feeling, what state your car is in (if it’s an old banger you will probably be looking at Third Party Only) and how nervous you feel about paying if you had a bump. Whatever type you go for, though, make sure you don’t pay any more than you have to for it. Step 2: Shop around
Shop around on the net and save yourself a load of cash. Our car insurance comparison will get you a good cheap deal – we know, we’ve tried it. But don't just try that - compare comparison services. See how comparethemarket.com lives up to our boards, as it has recently increased the amount of insurers it covers, and there are also many other comparison sights to try too. Kwik Fit is a great place to get car insurance; According to Consumer Intelligence, the best place to find car insurance in 2007 was Kwik Fit. Also, if you’re looking for a Sat Nav, Kwik Fit will give you a 65% discount on a ViaMichelin sat nav. This means for £49.99 you get a navigation system worth £149.99. Bargain. If Sat Nav's aren't your thing you can buy a Kwik Fit policy through ComparetheMarket and get a £30 voucher to spend at Kwik Fit. Essentially, look around on the Net for the best bargains on car insurance as internet sales have fewer overheads so companies can pass on savings to the buyers.
Step 3: Keep the costs down.
There are some things you can do before and after choosing your policy to keep the costs down annually.
Keep a safe driving track record. You can often get a discount on your premium if you take advanced driving qualifications. You will genuinely be safer on the roads too.
Buy smaller, greener, cheaper. The size, age, value and make of a car are important factors that could cut your insurance rates. For example, having heat-resistant doors on your car could lower them. Investing in a cheaper and smaller car initially can also help bring costs down. Choose cars that run on electricity and gas and save some money and the environment at the same time.
Pay in full. Instead of monthly premiums, pay your premiums six monthly or annually to avoid high APRs.
Keep good credit records. Protect you credit standing as your insurance rates depend on them. The cleaner your record the less insurance you have to pay. Check and update your credit records regularly and rectify any errors promptly so your record remains accurate.
Ensure good maintenance and planning. Be aware of road rules and drive carefully to avoid accidents. Be mindful of where you park the car and don’t keep your valuables in the car to avoid potential damages and theft. For example, installing approved alarms may lower the insurance premiums.
Pay higher 'deductibles'. By requesting higher deductibles (the amount you are willing to cover yourself in the event of an incident) in your insurance policy, you can really decrease your monthly costs.
Be particular about your personal details. Insurance companies offer varying car insurance rates depending on age, sex or professional status. Statistically, females are proven to be safer drivers than men. For a family car, consider having the wife’s name instead of the husband. Similarly, younger drivers are known to be more reckless, so arrange to buy a policy after your birthday to add that extra year on. In fact, certain professional fields bring with them higher premiums than others so be careful how you describe your work. If you do different things, pick the least ‘racy’ one. Remember, too, students can often get discounts so don’t forget to mention if you are one.
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