In the UK, by law, you must have some form of insurance coverage on your car. If you are caught driving without any insurance cover, penalties can include a hefty fine and even prison time, so it is important to take this law very seriously. The minimum amount of motor insurance you can get is Third Party only, which does not cover yourself, but simply any third party that is involved in an accident - their car and themselves. This is the cheapest and minimum amount of coverage you can purchase.
However, for some people, getting motor insurance might be very difficult or expensive. This is a function of your driving and claims record. For example, if you are a young driver with very little driving experience, then even the bare minimum motor insurance coverage may be unaffordable. This is because insurance companies will put you in the highest risk category and charge you a premium accordingly. Therefore, for many young drivers it makes sense to try to get insurance coverage through the family or with a parent, at least until you get some driving experience and can qualify for your own insurance coverage.
For other drivers who are accident prone or have been in several accidents. You will also be considered a high risk driver by the insurance company and motor insurance premiums may be very expensive. One rule of thumb is, for small accidents like bumps and scrapes, don't make an insurance claim. This way you may not put in a claim and start acquiring no claims bonuses. This means that the next year you renew your policy, your motor insurance company will take into consideration the fact that you did not make a claim that year and may reduce the policy premium for the next year accordingly. Keep insurance claims for those real big accidents or events, where it pays to have motor insurance coverage.
Every motor insurance company will check your driving record to see what kind of risk you carry. For those that have many points on their driver's license or have even lost their driver's license may find that they may no be eligible for motor insurance. Even basic coverage could be exorbitantly high. For these drivers, you may just simply have to ’bite the bullet' and pay a high premium and try to not have any accidents or claims during the first year to show the insurance company that you are not a high risk driver. In the worst-case scenario, you may simply have to wait a few years until the points on your license decrease and you can afford to buy motor insurance again.
Car Insurance Advice UK
You may think that car insurance is a no brainer and you don't want to spend too much time talking to insurance companies over your car insurance policy. This can be a big mistake, as car insurance is one of those areas, where shopping around can save you a lot of money and provide you more coverage for your money. However, keep in mind that insurance for your car is a legal requirement in the UK and you will have to purchase some level of car insurance.
First, decide what type of coverage you need. You have to choose from three basic coverages: Third Party, Third Party Fire and Theft and Comprehensive. What suits your budget and what coverage do you need? Third Party is the cheapest car insurance policy you can buy and it covers damage to a third person and their car, but will not cover yourself or your car. Third Party Fire and Theft, additionally covers your car against theft and fire. Comprehensive, as the term suggests, covers basically everything, including all those bumps and scratches. Significantly, it also gives you complete peace of mind in the event of a disputed accident liability or in the event that you have an accident with an uninsured veghicle and then have to taek legal action to get payment from them. With comprehensive ar insurance the insurance company does it all for you. Do some research on the web. Most insurance companies now provide instant on-line quotes, find out what type of insurance you qualify for and how much a policy will cost.
However, beware when comparing car insurance policies. Prices can vary greatly and so can scope of coverage. So, when comparing car insurance policies make sure you are comparing 'apples with apples' and it is important to actually read the fine print. Compare the varying levels of cover, by looking at the monetary value of the coverage you are paying for. Also, look at the 'out-of-pocket' or deductible amount you have to pay. A higher deductible will significantly alter the price of your car insurance policy. Car insurance premiums also vary greatly according to gender and age.
Choosing A Motor Insurance Company UK
When buying motor insurance, it is important not only to look closely at the insurance policy and the price, but it is almost as important to look at the insurance company that is issuing your motor insurance policy. This is because you are going to rely on the motor insurance company that issues your insurance policy to honour their part of the contract as well. This means that they will pay out on your policy if you submit a claim, or that they are financially sound to stay in business, even if they receive many claims.
Nowadays there are thousands of insurance companies offering motor insurance coverage. This includes traditional insurance companies that have branches in your high street, but also new insurance companies that may not have any branches, but use the internet to provide cost effective motor insurance coverage. Your high street insurance company may not be cheap, but they have been around for a long time and may provide other services, such as 24-hour accident hot-line or quick claims process. On the other hand, internet-based insurance companies carry very low overheads, which means that they can offer you much cheaper motor insurance coverage than your average high street insurance company. But it may be a company you have never heard of. Some may be 'online brokers' acting on behalf of a major company.
How can you be sure that you are getting quality coverage from a good motor insurance company? Well, you can never be 100 per cent sure that an insurance company will not go bankrupt. If they suddenly receive an inordinate amount of claims, any insurance company may go under. The UK government strictly regulates the insurance market, so finding a reputable insurer and avoiding dodgy insurance companies isn't too difficult. A quick and easy check is to find out if the motor insurance company you are dealing with is a member of The Association of British Insurers. Insurance companies that are members have to adhere to strict guidelines and are registered with the association. This will give you a level of quality you can depend on. If you are still unsure, talk directly to the motor insurance company you are dealing with and ask them for membership details to any associations or trade groups, if they are certified by any government agency or can give you other reassurance about the financial state of their company. If a motor insurance company does not take your concerns seriously, take your business elsewhere.
