Short guide to motor insurance

Motor insurance is a legal requirement in the UK, but the market is still an extremely broad one thanks to a large number of providers. Your policy will be dictated to an extent by the type of car you drive. Someone who has a high specification brand new Mercedes’ costing £100,000 is usually going to pay more than somebody driving a very old Rover, no matter what their age, but by following a few simple tips people can at least keep their costs to a minimum. There’s also a galaxy of add-ons and extras out there, which when compared like for like, can help someone to get a better deal.

A car insurance policy itself comes in three basic levels. Third party only is the minimum legal requirement, and only pays out for damage caused to someone else’s vehicle in an accident. Third party fire and theft does the same but also covers against, as the name suggests fire and theft, and fully comprehensive covers against just about any realistic threats to your car you can imagine.

Third party only might seem somewhat extreme and threadbare, but it can be relevant for people who have a car of a very low value. Car insurance policies also come with excesses, which are initial amount you agree to pay in the event of making a claim. So an excess of £400, means the driver will have to pay £400 towards the cost of any repair bill of around £1000, to give an example. Imagine your car is only worth £1,000, with an involuntary excess of £400. This means you can only really claim for £600 worth of repair costs from your insurer - depending on premium costs, you may only want third party in such a circumstance. Of course, at the other end of the scale, an older driver who has a brand new BMW worth £20,000 pounds may decide fully comprehensive is the best option for them.

Car insurance is widely available and can be picked up from high street insurance companies, specialist motor providers, and even supermarkets. Shopping around is often the best option as quotes can vary wildly. Remember all insurance companies calculate risk and what they charge you is based on how likely they think you are to make a claim. Therefore anything which reduces the likelihood could help your policy also go down.

Buying and using a steering lock, installing an effective alarm, immobiliser and even a tracking device could significantly affect your premium. Where you live is also important as areas which have a history of high car crime and vandalism understandably attract higher premiums. A simple way around this is to park your car on a drive or garage if you have access to one. Keeping a vehicle off the public highway is always seen as making it less likely to be damaged or broken into.

Motor insurance policies can also come with things like breakdown cover included. The quality of this will vary and things to look out for when comparing include whether or not it features a home start option, and recovery to the nearest garage. It is also worth looking at what its options are for travelling abroad. Those who like to motor on the continent or in Ireland may want to find something which covers them when on holiday.

Your motor insurance should also provide you with adequate cover for things which might be stolen from your car. Those who perhaps carry expensive laptops in the boot due to business reasons may want to make sure the level of potential payout is sufficient.