Insurance and Money Saving

Car insurance is one of the most important parts of owning a car, but it can be costly especially for new and young drivers. We have put together a guide to help you learn about the different types of insurance and some tips to help you save money when looking for car insurance.

Car insurance is a legal requirement to drive on public roads and provides financial protection in the event of an accident or incident. It can cover injury or damage to you, your vehicle or a third party that is involved. For the highest level of protection we advise that you have a fully comprehensive insurance policy.

Many motorists lie on their insurance to try and drop their premium but if you don’t give accurate information your insurance policy will be invalid. Be sure you give accurate and correct information when applying for car insurance to make travelling in your car worry-free and legal.

There are different types of insurance policies that offer different levels of protection. It is worth understanding the different levels of car insurance and find out what they offer and how they benefit you. We hope our guide below will help you have a better understanding of the different types of car insurance.

Third Party and Third Party, Fire & Theft

Third party is the minimum level of car insurance that allows you to legally drive on public roads and is a very basic type of insurance policy. This insurance policy only covers injury to the other driver and their passenger in their vehicle and damage to the third parties vehicle. Unfortunately you are not covered against any financial cost to your own vehicle. Third party, fire and theft is an extension of third party insurance and offers you cover against the loss or damage of your vehicle in the result of a fire or theft. Third party fire and theft covers you against:

  • Injury caused to other people
  • Damage caused to vehicles involved – apart from your own
  • The cost of repairing other vehicles
  • Medical costs for the third party
  • Legal claims made against you
  • Theft or fire damage to your car

Fully Comprehensive

Fully comprehensive insurance policies offer the complete package and cover you against everything and give you the highest level of protection. This includes cover against the damage of your vehicle or injury of you and your passengers. Fully comprehensive is the most common insurance policy and is sometimes made a requirement when purchasing a new car.

Specialist Insurance Groups

There are a number of specialist insurance groups that are aimed towards certain drivers to make it a more cost effective way of insuring their vehicle. These insurance groups can be very beneficial to certain drivers and they offer specific cover for:

  • Female drivers
  • Young drivers
  • New drivers
  • Students or Graduates

There are a number of ways of saving money on your car insurance and many motorists overpay for their insurance policy. We have put together our top ten tips to help you save money when it comes to buying or renewing car insurance:

1. Use price comparison websites – it is a good idea to shop round and get the best quote; you can always haggle with your current insurance company if you find a cheaper quote

2. Never accept your renewal quote – you may be able to get a cheaper premium with another company

3. Check the insurance group of the car you are buying – cars in a lower insurance group have a lower insurance premium.

4. Multi-car insurance – if you have more than one car at your home address you may be able to get a cheaper quote by insuring them all with the same company

5. Have a security device or tracker fitted to your car

6. Add another driver to your policy – sometimes adding a driver to your policy with more experience can help you get a lower insurance premium

7. Increasing your excess – we advise that you don’t claim on your insurance for small damage costs

8. The type of car you choose can affect the cost of your car insurance – try choose a small hatchback with a small engine. Small city cars and super minis are great for lower insurance premiums

9. Your driving habits can increase your car insurance – if you are caught speeding or have been involved in a previous accident you are seen to be more risk on the roads

10. Enhance your driving skills by taking post-test driving courses