You may never have thought too much about your car insurance, as it’s something that’s there in the background but rarely used. However, before buying a new policy or switching to a new provider there are a few things you need to keep in mind.
Costs
The cost of your car insurance is maybe the biggest thing you need to think about. After all, running a car isn’t cheap and if you’re on a budget the last thing you want is to be spending a lot on insurance. Insurance can be especially expensive for new or young drivers, so if you fall into this category, it’s really important to shop around for cheap car insurance quotes.
You can reach out to lots of different providers and find out how much your premiums will be before making a decision. While this takes longer than simply signing on with the first deal you see, it’s well worth the added time in the long run as you’ll be able to save a significant amount of money.
Exclusions
It’s easy to assume your new car insurance policy will cover everything, but many packages have a lot of exclusions. The last thing you want is to be caught short when you really need your insurance. However, common exclusions that most car insurance companies will have include general wear and tear damages and any damage that occurs when you’re driving under the influence of drugs or alcohol. These are usually non negotiables, so keep them in mind going forwards.
Excess
While you might have found a car insurance provider with a really cheap monthly premium, they could have a really high excess charge. This means that if you ever need to make a claim, you could be paying over £1000 to get any money back.
Sometimes this excess will be higher than the damage you need covering. Make sure you look for a policy that has a reasonable excess even if the monthly charge is a little higher, otherwise you may have to use your savings to fix your car anyway.
Type of cover
There are different types of car insurance to choose from and you may prefer a particular one for your needs. The key categories are usually third party, fire and theft, or comprehensive. Here’s a little breakdown of each:
- Third party: The most basic car insurance you can find. You will need to take this out by law and the policy should cover damages you inflict to other people’s cars or property in accidents.
- Fire and theft: These policies cover you if your car is stolen or destroyed in a fire.
- Comprehensive: As the name suggests, you’ll have complete coverage with this type of car insurance and it will include many different kinds of damage to your vehicle.
Car insurance is something that every driver needs to invest in, so it’s worth finding a plan that works for your needs. Opting for a plan that isn’t quite right could end up costing you a lot more over time or in the event of an accident, so consider your options carefully.
