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Car Insurance: Choosing the right one for you

Like in most other countries in the world, you need motor insurance to drive a car in the UK. A car insurance protects you in case of an accident or injury and covers the possible financial implications that may arise.

Driving without insurance is a criminal offence that can lead to points added to your licence and a fixed maximum fine of £300. In this article, we look at how to choose the right car insurance to avoid any penalties.

Choosing The Right Car Insurance

What Are the Different Car Insurance Policies?

There are 3 different types of car insurance. They are Third-party, Third-party, fire and theft, and Fully comprehensive. Once you have car insurance, you can freely drive anywhere in the UK and Europe (though you may need a green card in some countries).

Third-Party Insurance

It is the minimum legal requirement to drive a car. It covers a person for the cost of any injuries or the damage they cause to another person, their vehicle, or their property. The coverage with this type of insurance is the lowest of the 3 classes.

Third-Party, Fire, And Theft

This policy is the same as the third-party insurance, except it provides replacement or repairs if your car is damaged by fire or stolen. Therefore, it is an upgrade and an enhancement of third-party insurance.

Fully Comprehensive

It is premium-level insurance and provides the highest coverage. This coverage protects you, your vehicle, and anyone involved in a crash or accident. As well as providing the range seen with the third party, fire, and theft insurance, you are protected as the driver and pay for any damage incurred to your vehicle. It includes compensation for legal expenses, accidental damage, and medical treatment.

How much does car insurance cost?

The cost of the insurance varies from person to person and is based on factors such as:

  • • Age
  • • The type of vehicle
  • • The area where you live
  • • Whether you have a claims bonus

A “No Claims Bonus” certifies that you have had insurance for many years and never made a claim. This results in the premiums reducing yearly. Through no claims bonus, it is often the norm for older drivers to receive comprehensive coverage for a fraction of the price compared to younger or new drivers.

How To Choose The Correct Car Insurance

In an ideal world, everyone would choose the comprehensive option. It has the greatest level of coverage and provides the best protection. But unfortunately, due to the costs involved, not everyone can afford to choose the comprehensive plan. This means some people end up choosing the third-party insurance option and forget the advantages offered by the comprehensive coverage.

As with other purchases, some prefer to choose well-known brands over small ones. However, when it comes to car insuance, this does not make sense as all UK companies are highly accredited no matter how small or large. You’ll simply get what you paid for. Therefore, picking top brands such as Admiral or Direct Line could only mean paying more unnecessarily.

When To Choose Third-Party Or Third-Party, Fire, And Theft

Third-Party is a suitable choice if you don’t have much money to spend on car insurance. It is especially a good option if your vehicle is old and inexpensive. For instance, if a car is only worth a few hundred pounds, it will not matter much whether it can be repaired or not following a car accident.

It would be a different issue if the car were worth tens of thousands of pounds. If someone lives in an area with a high crime rate, the third-party, fire, and theft is a best option, as it provides insurance in case the car is stolen.

When To Choose The Comprehensive Cover?

If money is not an object and you have a high-value or a new vehicle, comprehensive coverage is the best option. It covers every possible angle such that you are covered no matter what.

For example, the insurance company will provide a replacement vehicle if you are responsible for an accident and the car is written off. All medical expenses are included if you cause an accident where people are injured. If the vehicle is damaged or vandalised (for example, scratched), the insurance company will repair it.

Through comprehensive car insurance, driving another person’s car with their permission is possible.

Shopping Around For The Best Deals

Reaching out to various companies and using online comparison sites is absolutely essential to obtain the best price. Reviewing the different companies' websites and price comparison portals may take a few hours, but it will save you hundreds of pounds. Obtaining car insurance for £700 per year is always better than £2000! Some of the best and most popular price comparison sites to visit are Compare The Market and Go Compare.

Ways To Keep Car Insurance Premiums Low

The insurance company will ask questions about you and the vehicle when seeking car insurance. Bear the following in mind to keep the price low:

  • Shop around and obtain quotes from many insurance companies and price comparison websites. That way, a person will receive the cheapest car insurance.
  • Make the car more secure. Park in the driveway as opposed to the street, if possible. You could ensure the vehicle is fitted with an alarm or immobiliser.
  • Safe Driving. If a person has attended courses such as the advanced driver course, it will bring premiums down.
  • Pay annually. Paying for the insurance in one sum will attract a lower price than paying monthly by direct debit.
  • Protect your no-claims bonus. You can pay a premium to ensure your no-claims bonus is not affected in the event of an accident.
  • Add an additional driver. If a second driver is from a low-risk category (e.g., an older person), the premiums will be reduced.

Getting The Best Car Insurance Policy

The price of car insurance can vary significantly from one provider to another. It is common for one company to charge a few hundred pounds while another will demand thousands of pounds for the same coverage. Therefore it is prudent to shop around for the best deals through price comparison websites.