February 18, 2008

Car insurance is an expensive business. My first few cars cost considerably less to buy than insure but that’s the trouble being a learner driver, you are a high risk group and have not had the chance to prove yourself and acquire any no-claims discount. As you gain experience driving you will hopefully also gain more no claims discount to at least offset the increasing cost of insurance if not actually reduce the cost of your cover.

The internet has changed the face of insurance more than any other area of consumer spending. Gone are the days when you’d go in to the insurance brokers and rely on them to fine you their best possible quote, now we’re all our own insurance brokers and rather than pay someone’s wages to find us a good quote from their contacts we now find our own better quote and make a double saving. However there are now an increasing number of different website options, including several that offer car insurance comparison, to help you both source the most cost effective cover and then make a purchase and it is easy to find yourself drowning in information and bewildered as to what level of cover your purchase will actually entitle you to. You’ll be running back to your broker and using them as a kind of insurance lifeguard.

In order to navigate the world of on-line insurance you’ll need to remember what you’re looking to achieve. Under the law you need to have at least third party cover. This is the minimum level of cover that you need to be driving on the road in the UK and it means that if you crash into somebody else then they will at least not end up out of pocket as a result of your actions. It will also cover any medical expenses that may incur. Many insurance policies will offer you third party cover in other cars other than your own, this means that the rest of the motoring world are covered for your actions. If you have a bit more money to spend then third party fire and theft is the next step on the ladder. This will qualify you for cover if your car is stolen but not offer you anything in the case of a crash that you are deemed responsible for. Fully comprehensive cover gives you peace of mind that your car is covered in all circumstances and you will be able to claim for damage whether the crash is your responsibility or not.

It’s worth remembering that insurance companies are in business to make money and as a result their terms are weighted to themselves to make this process as easy as possible. You need to keep in mind issues such as excess payments when sourcing your insurance as many low cost policies will have larger excesses attached to them. There is also legal cover which you are able to opt out of. This can cost as little as £20 and looks like an unnecessary luxury right up to the point when you have an accident at which point your insurance company will not make any representation on your behalf, making it impossible to claim if somebody crashes into you.

Levels of cover.

Third Party only

This offers cover for other motorists while you are on the road. If you crash into someone else then your insurance will pay for their repairs (unless it’s cheaper for you to fund them and you have the spare cash to do so). This will cover any other cover such as medical bills. It will offer you no cover for your own vehicle and not offer you any compensation should your car be stolen or burnt down. This is the cheapest level of cover and is probably only appropriate if your car is of little resale value.

Third Party Fire and Theft

Does exactly what it says on the tin. As above but will also cover you for a car fire of if you car is stolen. This is the middle level of cover and is priced accordingly. If you have a valuable car this is unlikely to offer you the cover that will give you peace of mind and will also not give you and extras like courtesy car while your car is being repaired, but it does offer cover above other peoples vehicles while you’re on the road.

Fully Comprehensive

As the name would imply this is the highest level of cover, although is still varies from company to company. You will be covered if a crash is your fault and will be able to claim on your own policy if you wish to when a crash isn’t your fault. This means that if an uninsured driver causes an accident that involves your vehicle you’d be able to claim on your own policy, although your no claims discount may deter you from doing so. There are within here a number of add on options to consider, windscreen cover, breakdown cover (if you’ve not got it elsewhere), legal cover, protected no claims discount, physiotherapy cover, foreign use cover and more to suit needs and concerns.

As a rule of thumb the cheaper your car insurance cover is as standard the less things it will cover you for you should probably look to use the internet to see what other people are saying about their insurance providers and look to what cover you feel you require and what you think you should pay for this cover. Use the price comparison sites if you don’t mind sharing your details, or if you subscribe to which they offer an easy to reference table of best buys. If you wish to take a little time and use the right referencing options you should be able to find the best cover for your money but keep in mind that the more you pay the better cover you’re likely to get, if you feel like you’re getting a great bargain there’s a good chance that you’re getting less cover than you think.

Leave a comment

Type into the box below