car insurance exists to protect you financially in the event of an accident, whether or not it is your fault. In the UK, car insurance is a compulsory as well as a necessary expense. If you have an accident in your car, you will be glad that you invested in good car insurance for the financial protection that this will give you.

Sadly not all insurances include fixing the damages to your car, protecting against liability, legal fees or damage to any other property involved in the accident. Bolt-on niche insurance products such as inconvenience cover, gap insurance and even legal protection insurance can prove to be invaluable additions to your comprehensive car insurance to ensure an accident does not end up costing you more than you can afford should the worst happen.

Choosing the right car insurance will protect not only you, but your vehicle, and third parties in the long run. If you are planning to drive in the UK, you are required to purchase car insurance. Your insurance company will cover you at a level determined by the type of policy you choose.

WHY YOU SHOULD SHOP AROUND FOR NEW car insurance

Shopping around for car insurance is very important for several reasons:

• You may find better quotes
• Depreciation will affect the value of your car
• Your personal circumstances may be different
• Car financing could put you and the car in a higher risk category
• You could find a policy which includes cover for loss of personal items
• Breakdown cover may be included in some policies
• You may find an insurer offering inclusive legal cover
• You could find a policy which includes cover for a second car
• You may be offered an introductory discount

Just because you have used the same insurance company or insurance broker for several years, does not mean you are getting the best deal. It really only means just that – you have used the same insurance company or insurance broker for the past several years.

A good insurance broker is most likely to get you the best coverage if they manage your full insurance portfolio as they then know your history and needs. This is also the case with car insurance as they can often consolidate your insurance needs into an all inclusive package which most insurance companies only make available to brokers.

Car depreciation occurs as a result of the age and usage of a vehicle. Your new car begins to depreciate as soon as you put the first few miles on the clock. Every year that you own the same car, its value decreases. You should get a reduction in your premium to reflect this. This makes perfect sense. Check the value of your car against its blue book value rather than the price you paid – your broker can do this for you. This is because even fully comprehensive policies will only cover a vehicle to its blue book value rather than it’s purchase price. So make sure that that is what you declare the car’s value to be. It will usually cost more to insure a more expensive car. You may be lucky enough to find a policy which offers to replace your car with the same of similar following an accident, but this is not usually the case. There is however an insurance product called Vehicle Replacement insurance which does just that! Finding out more about vehicle replacement insurance is easy, just click on the link.

Your personal circumstances may be different that at your last renewal. Perhaps you do not drive as far or often as you did, or perhaps your children have grown and want the keys to the car. Change your insurance details to reflect these changes in circumstance. Lower mileage drivers can get significant discounts from insurance companiesAdding additional drivers is not as expensive as you would think; a great tip here is to wait until renewal time if possible. By waiting until renewal time you may be able to avoid the administration costs of adding extra drivers.

WHICH LEVEL OF car insurance IS THE BEST CHOICE?

insurance cover in the UK falls into three different categories.

1. Basic Third Party insurance is mandatory in many countries, including the UK. This type of cover insures a vehicle and driver against damage to another person’s car, driver or passengers if involved in an accident. This type of insurance covers your liabilities in the event of damage to another vehicle or person in an accident. This type of cover will not protect you against damage to yourself or your own car. This type of insurance will not cover repairs to your vehicle.
2. Third Party, Fire and Theft insurance will cover the benefits of third party insurance and includes any financial loss to the insured vehicle caused by fire or theft. This type of cover can offer the best value for a policyholder if the car does not have a high market value. You must have a fully comprehensive policy for a leased or financed car.
3. The widest coverage is provided by a Fully Comprehensive insurance policy – or “fully comp”.As well as providing basic cover as in third party, fire and theft, it will also cover vehicle damage and bodily injury sustained in an accident. A fully comprehensive policy is a better choice if the value of the car is more than you could afford if you needed to replace it. Finance Gap or Vehicle Replacement Gap insurance are additional insurance products available to top up the gap between your payout and the cost of paying off a new car, so go online and find out more about these insurance products.
Many factors affect car insurance and most insurance companies offer a range of secondary covers to meet the varied and specialized needs of the policyholder.

FACTORS AFFECTING car insurance

1. The Policyholder

• Age of the policyholder
• Men are considered higher risk than ladies
• Marital status
• The area you live in
• Engine and car size
• The cost of replacing the vehicle
• Any modifications that have been made to the vehicle by its owner

A younger less experienced driver will pay a higher insurance premium than someone with several years driving experience.

A married person is considered more responsible for their actions than a person is with no commitments. It stands to reason that married men with kids have more responsibilities than single men and the insurance companies therefore consider married men a lower risk category.

Where a person lives also affects the insurance cost. Rural areas that have less traffic and areas with a lower crime rate will mostly likely get a better premium than towns or high crime areas.

A powerful car is more likely to lose control at the hands of younger drivers: expensive cars cost a lot to replace if scrapped and should they simply require repairs the sum of the replacement parts often costs more than the used car’s value, making more powerful cars very expensive to ensure.

Modifications are more likely to alter the vehicles safety; performance is improved, and handling may be compromised making the vehicle more unpredictable. The insurance company therefore sees these factors as an increased risk and will increase their premiums as a result.

2. Driver History

• Years of driving experience
• Previous claims
• If you have points on your licence
• Annual mileage

The number of years a person has been driving suggests their understanding of the rules of the road, shows the driver has built up experience of driving under varied driving conditions and has attained a certain level of confidence while behind the wheel. insurance companies base these assumptions on the policyholder’s claims history over the last five years. Most driving convictions negatively affect motor insurance premiums for drivers. Parking violations are not included.

Annual mileage is a factor too. The more a vehicle is on the road, the higher the risk for an accident.

3. Vehicle History

• Current vehicle value
• Owned, leased or financed
• Vehicle make and model
• Performance level and size of engine
• Modifications to the vehicle

If the vehicle has a low book value, it may not seem to be cost effective to pay for comprehensive insurance; however this is not necessarily the case. A named driver with several years of insurance cover and no claims against his or her name could find that fully comprehensive car insurance costs almost the same as a lesser level of cover, but with additional benefits such as a free courtesy car etc. Many on-line insurance buyers find that for just a small premium increase, many additional benefits can be included. If you are leasing a vehicle or have acquired it via a finance company, then you will need to provide fully comprehensive insurance for the vehicle. You need to be able to reimburse the leasing or finance company for any damage to the car. Comprehensive insurance will cover this.

There may be other benefits included in your car insurance policy, which are not always necessary but sometimes advisable:

• Breakdown insurance
• Provision of a courtesy car while yours is in the garage
• Roadside or breakdown cover
• Some insurers may offer you legal cover included in your policy
• Cover for your windscreen
• No Claims protection
• Compulsory or voluntary deductible amount

Choosing the correct insurance and getting the best quote can be daunting as there are so many variables to consider. If a website was built properly its users will find it easy to get a great price quickly and easily. An insurance aggregator website is a good place to get you started. On-line insurance aggregator websites are generally very easy to use. You’ll only need to fill out one questionnaire so that the market can be searched on your behalf. Once they have collected all the quotes, you will be able to compare insurance policies against each other, save and email your quote to your personal email address, go back and change your options to include or reduce the benefits you may be considering and – when you’re happy – buy on-line. It’s always a good idea to find out if your broker can get you a better deal first, so keep him posted on your findings. When comparing quotes on-line, remember to do so on a like-for-like basis. It could be more complicated than you at first think. Good luck on finding the best policy for your needs.