Car Insurance
Car Insurance and how it works can be confusing for most people, especially people from the younger generation. It is very important for consumers to understand how car insurance works in order to get the best deal and avoid common but costly mistakes.
On this site you will get a proverbial crash course in car insurance. We will explain how car insurance works and provide you with free tips and suggestions to help you save money with your car insurance.
What is Car Insurance?
Car Insurance is just like any other form of insurance; it protects the insured person against losses. Many different types of cover are available all depending upon what the person wishes to be insured against.
The premium is what you pay to the insurance company on a regular basis to cover your insurance.
Your premium is based upon a number of factors, including; age, gender, area of residence, driving history and the level of cover you want.
This is then used to cover any damages or losses you incur to your own and other people's vehicles, depending on your type of cover.
If you claim on your insurance (have an accident etc), your premium will go up. This is because your car insurance company will view you as a higher risk and therefore more likely to cause another accident.
So You Want to Save Some Money?
You’re looking for information about cheaper car insurance?
Here’s a few tips that could help you save some money
1. Shop around and buy online. Many insurance companies offer discounts when you buy online, which works in your favour, as its also less hassle on your part. Don’t just go for the cheapest policy; make sure it is right for you. Always compare policies on a like-for-like basis in terms of what each policy covers and check the excesses levels and small print.
2. Build up no claims bonus. Taking out your own insurance policy will enable you to start building up your no claims bonus. You will then have access to a much wider range of insurers and lower rate premiums in the future.
3. Buy a car with a low engine capacity (a less powerful engine). Before you buy, always compare insurance premiums for different models you are interested in. The cost of the car, engine size, repair costs and safety track record will affect the insurance premium. Cars with a lower insurance grouping will be cheaper to insure.
4. Take ‘Pass Plus’ (UK only). These courses are designed to make you a safer driver and many insurers will offer you a discount. The courses involve further lesson on how to observe potential hazards and driving in adverse weather conditions. This will also serve to lower your premium
5. Avoid modified cars. Insurers are likely to charge more if your car has been modified in any way. Any modifications - whether it be alloys, body kits, suspension upgrades, and especially supercharged engines - mean the factors on which your premium is based will change and insurers are likely to increase their premium.
6. Keep your car secure. A professionally installed approved alarm can save a great deal on your car insurance. Parking your car in a secure garage or off the road could save you up to 5%.
7. Pay a higher excess. If you choose to pay a higher excess (the amount you have to pay towards a claim) you can cut your car insurance premium. If you are a confident in your driving ability and are unlikely to claim then this is a good way to lower your premium.
8. Low mileage discount. Low mileage drivers will often be entitled to a discount, however never deliberately underestimate your mileage as this could cause problems when you claim.
Click here to find out how to cut your fuel costs
9. Appropriate level of cover. Premiums vary dependant on how much cover you have. Get quotes for all to see how they compare. If your car is of low value you could save by choosing Basic cover/Third Party cover only. Remember that Basic/Third Party will only cover you against accidental damage to a third party vehicle, injury to third parties and liability to passengers in the policyholder's car. Fully comprehensive car insurance covers against accidental damage to a third party vehicle and to the policyholder's car, injury to third parties and liability to passengers in the policyholder's car.
