Car insurance is one those products that you legally have to buy but hope to never use. You will need it if it is necessary. It should work as expected and cover any loss or damage. Worst of all is the fact that, despite paying monthly premiums, there are still vital aspects left uninsured or underinsured. You should be assured that low-cost car insurance does NOT have to provide insufficient coverage.
Like many things, cheap car insurance doesn’t mean paying the lowest price. Instead, it means getting the best deal for what you actually get. This means that it is about getting the best value. This could be referred to as getting the best car insurance coverage for your lowest premium.
This search requires careful consideration of the coverage you require and the premiums you’re willing to pay. The internet has made the task of balancing much easier. You can use an online insurance comparison site to compare the policies and benefits of several insurers.
These are some factors to consider when comparing policies and trying to find the best value for your money.
Types of insurance – whether you choose third party cover only; third party, fire and theft; or a comprehensive policy will naturally determine the price you pay. Third party insurance is what you need to purchase to be able to drive. There are far fewer risks for the insurance company to have to pay out if they offer only a minimum amount of coverage than if they had full coverage. Your premiums will likely be lower because of this. However, if your new car is worth £15,000, are you really prepared to run the risk of losing it all if the car is written off following an accident? In these situations, a cheap insurance policy would not have provided enough coverage. It’s worth taking the time to carefully consider which type of insurance is right for you and your car.
Exceeds – share the risk with your insurer and the premiums are likely to be cheaper. A majority of car insurance policies will include a “voluntary excess”, which is an extra to the standard “compulsory exclusion”. This means that you assume a greater risk by covering more of any claim. You may not find sufficient coverage if you cannot afford to pay all of the excess.
Histories – car insurance, of course, is all about insuring the risk of you damaging your own or someone else’s vehicle or property or causing injuries or death to a third party. As part of assessing your risk, your past driving records and claims history may be used by the insurer to predict the likelihood of you having an accident in future. Low-risk drivers who have had few claims or none will receive lower premiums.
You – insurers will also take into account a number of things you cannot change or will be very unlikely to change in order to buy cheaper car insurance. The price of the coverage you receive will be affected by your age, gender, occupation, and residential postcode. While the individual driver’s personal circumstances will determine the price of the insurance, the fact remains that there are many other factors that can influence the cost of car insurance.
