Car Insurance Buying Guide
The saveyourselfmoney Cheap Car insurance guide
Why take out car insurance?
Put simply, if you drive a vehicle and do not have car insurance in place then you are breaking the law. The new Continuous Insurance Enforcement (CIE) regulations will make it illegal to own a car without adequate cover, unless it has been declared off road.
There are many people who flout the law and do not have a suitable car insurance policy in place and the new proposals are designed to reduce the number of cases and offer a further level of protection to law-abiding motorists.
Uninsured drivers add around £50 to the premiums of other road users who comply with the law, according to statistics from Co-operative Insurance, so even if they do not crash into you directly, they are still having an impact on how much you pay.
Under the new CIE regulations, drivers who fail to take out insurance could face court action, hefty fines and the possibility of their vehicle being confiscated and crushed. The cost of not having car insurance in place is much higher than taking a policy out, so to be on the right side of the law, you must be covered at all times.
So - what kind of cover should you go for?
There are three main options available when it comes to car insurance - fully comprehensive, third party only and third party fire and theft.
Fully comprehensive is the best policy you can buy. If you take out this form of insurance then you are protected in the event of damage to another vehicle, your own motor or injury to another person. Even if the accident isn't your fault, a comprehensive policy still protects you.
Some policies offer breakdown cover and other extras, so there are many benefits to taking out this form of protection.
Third party only is the minimum level you are required to have by law. This form of car insurance will protect you against the costs incurred by another driver should the two of you be involved in a collision that was your fault. It will not extend to your vehicle.
The next level is third party fire and theft. As the name suggests, this offers the same protection as standard third party cover but extends to cover your own vehicle should it get damaged as a result of fire or stolen.
How to save cash on car insurance
There is a lot of talk about car insurance premiums going up and that is true for the majority of people. However, there are steps you can take to keep the cost of cover down.
The most obvious is to drive and park carefully. Sticking to speed limits and driving in a considerate manner can reduce your chances of being involved in an accident. If you have a garage, parking your vehicle in there will also have an impact, as it is likely it will deter thieves.
One of the most costly groups to insure is those under the age of 25. Insurance firms see young drivers as more of a risk and therefore demand larger premiums to protect them. One way of keeping the cost down is to add a second driver who has an unblemished record to the policy. It is important to remember that 'fronting' is against the law and should not be considered under any circumstances.
Other options include choosing an affordable car, boosting security and avoiding adding spoilers or other modifications that may attract the unwanted attention of car thieves.
Jargon busted
Excess - the amount of money the policy holder must pay themselves in the event of a claim
Fault claim - a claim where the insurer is not able to claim back their full costs from someone else
Non-fault claim - a claim where the insurer can reclaim their costs from a third party
Fronting - falsely claiming that an experienced driver is the main policyholder to reduce premiums
No-claims bonus - A discount earned based on the number of years a driver goes without making a claim
