Car Insurance Advice

More tips to help you save on your car insurance There are several different types of car insurance so it's important to get the right cover for your needs. Read on to find out all you need to know. Car insurance advice for every situation There are many different types of car on the road, as well as many different types of motorist. So, naturally, there are many different types of car insurance policy to suit their needs. A young driver who has recently passed his test and wants to insure a second-hand car will not want the same cover as, for example, a more experienced motorist who regularly takes their vehicle abroad. The choice of policies – and insurers – can help to bring down the cost of car insurance quotes as companies compete for your business. But it can also lead to confusion, especially if you are unfamiliar with the market. Our easy-to-read car insurance advice page can help by giving you the low-down on the different types of motor insurance and the hidden nastiest in the small print, as well as money saving tips and advice.

Compulsory cover

The first thing to make clear is that car insurance is compulsory – you must have a minimum level of third party cover by law. The government is keen to crack down on the number of uninsured motorists on Britain’s roads – estimated at about 1 million – and has recently introduced continuous insurance enforcement.

Basically, the rules mean that if you own a car it must be insured, even if it is in your garage for six months of the year. The only way round the rules is to apply to the DVLA for a Statutory Off Road Notification, or SORN.

The penalties for flouting the rules can be severe. If you are caught driving without car insurance, you could be issued with a fixed penalty of £200 and six penalty points. If the case goes to court, the maximum fine is £5000 and you could be disqualified from driving. The police also have the power to seize, and in some cases, destroy the vehicle.

Different types of motor insurance policy

Ok, so you have to buy car insurance. But which is the best policy? There are basically three different car insurance policy types. The minimum legal requirement, as we’ve noted, is third party insurance, which pays out if you injure another person or damage their property in an accident that is your fault.

For example, if you crash your car into your neighbor’s fence, or reverse into their car, third party car insurance will pay for their repairs. However, the policy does not cover any damage to your own vehicle. 

If you want some protection for your own car, third party fire and theft is the next step up. It again insures any third party, but also covers your own vehicle if it is stolen or damaged by fire.

Then there is comprehensive car insurance, which is the most popular choice as it provides extensive cover for you and your car. It also usually comes with various extra benefits, such as legal expenses insurance.

The type of motor insurance policy best suited to you depends on your circumstances. If you have an old car that is not worth very much, third party cover might be adequate. But a driver with a more valuable vehicle would probably select comprehensive car insurance.

Compare car insurance quotes

Price is a major factor in the decision, and third party cover is often cheaper than comprehensive car insurance because it is more basic. Often – but not always.

There has been a sharp increase in recent years in the number of people taking out third party cover. It is particularly popular among young people who are eager to cut costs. But young drivers are involved in more accidents than older motorists, so they generate more claims. The price of third party cover has therefore gone up as insurers attempt to recover some of their costs.

If you are thinking of buying third party car insurance, it is always worth checking the premiums against comprehensive cover as you might only have to pay a little bit more for a lot more protection.

If you are thinking of buying third party car insurance, it is always worth checking the premiums against comprehensive cover as you might only have to pay a little bit more for a lot more protection.

The typical cost of car insurance has come down recently. But it can still take a big chunk out of your budget.  Young people pay a particularly high price for car insurance cover because they are statistically more likely to make a claim.

Adding an older driver

More young drivers these days are therefore adding an older, more experienced motorist to their policy as a named driver, typically their mum or dad. This can be an effective way to drive down the cost of car insurance quotes because the insurer assumes that the parent will be behind the wheel at least some of the time, lowering the risk of a claim.

But don’t be tempted to bend the truth. If you put your mum or dad down as the main driver, rather than just as a named driver, when in fact the main driver is you, you’d be breaking the law. The tactic is known as fronting and is illegal.  You can find out more at our named driver car insurance page.

Choose your car with care

Your choice of vehicle can have a big impact on car insurance quotes. Insurers classify every vehicle into one of 50 car insurance groups according to a number of factors, including engine size and cost of repairs. A car in group one will be cheaper to insure than a car in group 50 because the insurance company is likely to pay out less in claims.

It is a good idea to check out the car insurance groups before you buy a car and you can find more information at www.thatcham.org