Insurance Guide

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Car Insurance

What Type of Car Insurance to get

Choosing car insurance can be a difficult business. It can be expensive and so it is tempting to try to find the cheapest possible option, but this is not always the most sensible decision.

Car insurance is a legal requirement, but you just have to have enough cover to pay for any damage that you cause to other people, property or vehicles. This is called third party insurance. You can upgrade this to third party, fire or theft where your vehicle is covered in the case of it being stolen or burnt but not if you have an accident. It can make more sense to get comprehensive cover, where your vehicle is also covered in an accident even if it was your fault. This means that you will not be stuck without a car if yours gets written off or needs expensive repairs that you cannot afford.

If you have a very cheap second hand car, then you may consider not having this cover. It might be cheaper to buy a new one than pay for this insurance or you may have a high excess which is more than the car is worth. Having a high excess can be a really good way to keep the cost of insurance down, because it means that you offer to pay a high amount of money towards the repair or replacement of the car, which reduces the risk to the insurance company.

If you are a young driver, you will find that car insurance will be extremely expensive. Even though you might end up paying more, you may find it easier to pay it monthly. It is normal to pay yearly, but when the premium is a few thousand pounds, which is can be for a new young driver, then it is wise to consider making the payments easier and spreading them through the year. This can be a good option for anyone who thinks that they might have difficulty in paying it.

Once you have decided about what type to get and whether to pay monthly or annually, you then have to decide on which company to go for and which specific policy. This can often be a case of comparing the cost, but it is important to make sure that you are getting good value for money, so make sure you know exactly what you will be getting cover for.