What You Need To Know About Car Insurance

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Do you own a car? Where do you live? In a cottage, house or flat? Are any of these items insured? If not, you should really consider getting insurance coverage. Purchasing car insurance protects you against any uncertain financial losses. The insurance cover that you take out will cover other road users if the accident was your own fault. Getting your car insurance is not the last thing. You have to keep renewing the insurance and pay your premiums for continued insurance coverage.

The car insurance industry in the UK underwrites and assigns premiums for car insurance coverage. Such coverage provides you with financial protection against any physical damage or bodily injuries caused by traffic accidents.

If you live in the UK and you own a car, you already know that the law requires you to have the car insured. Failing to comply with car insurance law can land you to be charged a fine of up to £5,000 and possible disqualification. Therefore, you have to get your car insured, but how much cover you get is your own decision.

These are the popular Car Insurance Coversin UK.

Third Party Only

This is the most basic and minimum level required by law. In case you get involved in a traffic accident and cause damage to someone else’s car or inflict injury to another person in the car, you will be covered for the costs. However, any damage to your own car is not covered and you will have to fork out the bill.

Third Party Fire & Theft

This has all the benefits of the third party only but with two more important additions of cover.

Fire – Any type of fire damage to your vehicle will be covered.

Theft – If your car is stolen or broken into, you will be covered for the loss. Make sure you complete a police report as insurers will ask for this when you claim.

Comprehensive

This cover has all the benefits of the first two covers. You will also be covered for any damage to yourself or your own vehicle. Some insurers may refer to comprehensive insurance coverage as “fully comp”. However, it may not cover everything in some cases like vehicle breakdown or lawyer fees. These types may be classed as extras, so when you are purchasing any policy ensure that you read all parts of your policy. If you don’t, it may bite you in the bum further down the line when you try to claim for the extras that are not actually on your policy.

The price of your premiums depends on your age, employment, where you live, your excess and the type of insurance cover you choose. Bear in mind that some instances you may pay a similar price for the third party as you would comprehensive. Our advice is to complete research into car insurance prices online. If you are between 17 – 24 years old, you might save a lot of money if you place your parents as a second driver on the policy.

Esure Insurance

Esure Car insurance has been rated as 5-star Defaqto rating and considered affordable insurance with all-around coverage. Esure has consistently been the cheapest car insurance premium website around.

Read on below for information on how to reduce your car insurance premiums:

Your Vehicle

As you may be aware, the car that you are insuring will also play an important factor in how much the insurance cover will cost. Below is what you need to take into consideration.

Market Price

Car insurance companies are out to make a profit, having this in mind they will base the price they provide you on your level of risk. The set of wheels that you drive will have a considerable effect on your car insurance evaluation. If you own an expensive car, the premiums will be higher. For example, if you were involved in an accident the price for repairing the car and spare parts are going to be much more expensive.

Gender

According to an article by The Telegraph, men are still charged more than women when purchasing car insurance in the UK. Car insurers are completely ignoring introduced regulations from the EU that clearly states there should be no gender equality by insurance companies. Car insurers have been able to find loopholes that mean they base their premiums on the occupation of men and women. This means that male-dominated jobs like Civil Engineering and Labouring average out a higher premium than female-dominated jobs like Nurses.

Age

The age of the insurer will also play a major factor in determining the cost. Insurers between 17 – 25 will have a high premium as they have less experience on the road and considered a very high risk of causing an accident. To keep down the premiums, young drivers should ask mum or dad to be a named driver on the cover. However, using another family member as the main driver, while the young driver is a named driver but actually, the main driver, is illegal. Anyone over the age of 25 will have a much cheaper premium. Just bear in mind if you are 18 years of age now, each year your premiums will reduce slightly. Assuming you don’t get into an accident!

No-Claims Bonus

When you apply for car insurance, you will be asked how many no claims you have. if you have not made a claim for a year or more than you will have some. This will improve the price of the premiums offered by Insurance companies.

If you are involved in an accident that is not your fault, you will still have to claim on the insurance, and you will lose your no claims. Car insurance companies have introduced no claims bonus protection which increases premiums, if you are involved in an accident you will not lose your no claims. This protection may save you money in the long wrong because no claims play a big part when insurers give online evaluations.

Car Security

Insurers will take into account the security of the vehicle. Most vehicles will have alarms and security features implemented already. Where you live can dramatically increase your premiums, your postcode will be used to check the crime rate in the area. If your area has a high rate of criminal activity than the premiums will be very high.

Placement of the vehicle at night will have a factor in the insurance. Having the car in a garage will be classed as a secure location. Having the vehicle on the side of the road would be classed as an insecure area and would be considered a higher risk.

Telematics and Black Box Devices?

Telematics was introduced by insurers to track the various aspects of how you drive on the road. The tracking device is also called a ‘black box’ which is fitted into your vehicle at the start of your insurance period. Usually, you will be able to download an app and view how you are driving. If you drive safely your insurance maybe likely to reduce your premiums but if you drive erratically then premiums will skyrocket. The insurer may even cancel your insurance altogether.

We hear regularly that these tracking devices reduce your premiums and I’m sure they do but they have never been enough to justify having one for me. I speak to the younger generations, this is may be suitable for you to reduce your premiums and make driving affordable.

Car Insurance Comparison Sites

Comparison sites like GoCompare and MoneySuperMarket have made searching for car insurance much easier. Completing your details exactly as you would for one website, they will search hundreds of insurance companies and provide a list of each one. You can sort out results by clicking for the cheapest prices and focus on what policy this includes.

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