Finding The Right Car Insurance.

Car insurance is there to give you financial protection in the event of an accident whether or not you are responsible for it. Vehicle insurance is a necessary expense which all motorists must take into account. You need a good car insurance policy for the financial protection it will afford you in the event of an automobile accident.

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 plan to drive, you must be able to prove that you have purchased 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
• You may have a change in circumstances
• Car financing could put you and the car in a higher risk category
• You may be able to cover the loss of personal goods
• You may find a policy which includes breakdown cover
• You may find inclusive legal cover offered by some insurers
• You may find an insurer covering your 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 doesn't always follow that the same company or broker can offer you the best deal for your insurance.

If your broker manages your entire insurance portfolio then he is in the best position to get you the best deal, as he already has information about your demands and needs. They may be able to consolidate those demands and needs into a package which often will only be available via a broker.

Car depreciation occurs as a result of the age and usage of a vehicle. No sooner than you have driven your new car off the showroom floor the car begins to depreciate. Every year that you own the same car, its value decreases. Make sure that your insurance policy reflects this reduction in value. This may seem obvious but people often neglect to do this. 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. The more expensive a car is the more it can cost to insure. In rare cases the insurance company may offer a replacement car of the exact model or spec after an accident. There is however an insurance product called Vehicle Replacement Insurance which does just that! Click on the link to find out how it works in more detail.

Your circumstances may have changed since you last renewed your car insurance. You may have switched jobs and not drive as many miles per year or have paved the front lawn and turned it into off-street parking. Get insured accordingly. If you drive fewer miles your insurance company will recognise the decreased risk and your premium will be reduced accordinglyYou can add additional drivers to your policy for relatively little expense, especially if you wait until it's time to renew. 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?

There are three types of vehicle insurance in the UK.

1. In many countries including the UK, Third Party Insurance is mandatory. It gives you cover against a claim against you for damage to another car, its driver, or passengers should you be in an accident. Third Party Insurance acts as security against liabilities for damage to another person in a vehicle accident. Third party insurance will not cover any damage inflicted on your own car or to your person. You will not be reimbursed for repair costs with a third party only insurance policy.
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. A car which has been either leased or financed must have a fully comprehensive insurance policy.
3. "Fully Comp" will give you the widest insurance cover for your vehicle.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. If your car is worth more than you could afford to replace it, then you should opt for a fully comprehensive insurance policy. Search online for products like Vehicle Replacement Gap insurance or Finance Gap - these will close the gap between what your payout would be and the cost of buying a new car in the event of an insurance write-off.
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
• Are you married or single
• Inner city, suburban or rural residential locations
• How big the car is
• Vehicle replacement cost
• 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 a married man with children has more responsibilities and the insurance companies will therefore consider this person a lower risk than a single male in his early twenties driving a WRX.

Where a person lives also affects the insurance cost. If you live in the country or in a low crime rate location you are likely to get a lower premium than if you are a city-dweller.

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, but handling may be compromised making the vehicle more unpredictable. An increase in insurance premiums should be expected with car modifications, as these represent an increased risk to the insurer.

2. Driver History

• Years of driving experience
• Historical claims
• History of driving convictions
• 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. The number of insurance claims made in the previous five years will either confirm or deny these assumptions. Driving convictions such as speeding, hazardous driving or driving while intoxicated will affect the premium. This does not include parking violations.

Annual mileage is a factor too. Your chances of being involved in an accident are increased the more time your car spends on the road.

3. Vehicle History

• Current vehicle value
• Whether you own the car or if it is leased or financed
• Car 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. Often as the named driver with many years of no claims under the belt, fully comprehensive motor insurance could cost no more than third party insurance, but with additional perks. When buying online you may find that additional benefits can be included at little increased cost to you. Fully comprehensive insurance cover will be required for leased or financed vehicles. This is so that they can be reimbursed for any damage caused to the car by the policyholder. This will be covered if you have fully comprehensive insurance.

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

• Breakdown insurance
• A courtesy car could be offered while yours is being repaired
• Roadside assistance
• Help with legal fees and advice
• Repair or replacement cover for windscreens
• Protecting your no claims bonus
• 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. Minimise your aggravation by only visiting user-friendly insurance sites. A good place to start is on an insurance aggregator website. They are fairly easy to use. You only need to answer the questions once, and then they will select products to show you based on your answers. 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 online. Think about first giving your current broker a call and asking them to get you a better deal based on your findings. It's important to remember that you should compare like-for-like quotes when looking at different insurers. It is not always a quick and easy task. Good luck on finding the best policy for your needs.