Car insurance is a legal requirement for all drivers on the road and having an understanding of how the UK car insurance companies work is essential when searching for the cheapest car insurance quote.
The first thing you need to consider is what type of car insurance you want.
There are 3 main levels of car insurance:
Third party only
This is the minimum level required by law. This will ensure that liability for the third party’s vehicle or property is covered. Damage to your vehicle is not covered.
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Third party, fire and theft
This will cover liability to other vehicles and property plus fire and theft cover for you own vehicle.
This is the most extensive cover you can get. This covers all parties concerned.
Which cover should I choose?
Which cover you choose will depend on your budget and the value of your car, eg there may be little point in taking out a comprehensive car insurance if the car is not worth the annual policy fee.
Most insurance companies will offer optional extras such as legal protection, windscreen cover, breakdown cover, courtesy car etc.
These will all add to the final quote. When comparing quotes make sure you are comparing like for like.
What else should I consider?
The other factors to take into consideration when choosing a car insurance policy is the excess.
Excess is the amount you will have to pay towards the repairs, so for example if the repairs cost £1000 and your excess is £250, your insurance company will only pay £750 towards the final bill.
Most cheap policies will have a high excess.
How can I reduce my car insurance premiums?
One way of reducing your car insurance premium is by earning no claims bonus.
This is awarded to drivers who do not make a claim. In return you save on your policy.
The key to saving money on your car insurance is to compare and switch, don’t pay over the odds by staying with the same provider.