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1. Decide what type of car insurance cover you want
Compulsory Third Party is the bare minimum legally required of you, and covers you, as the driver, against claims for compensation if you injure or kill a person. However, it is not the bare minimum you need: Compulsory Third Party won’t cover for you against damage caused to other people’s property (if you crash into a Lamborghini you’ll have to pay to get it fixed out of your own pocket!). Third Party Property insurance covers you against damage to another car or even a building, for example, a house. Most people have at least CTP and Third Party Property insurance. For slightly more cover, Third Party Property, Fire and Theft will also cover a car against being stolen or burned. It’s important to note, though, that Third Party insurance does not protect you – your person, your body – if you are injured in an at-fault accident. Many people don’t realise this until they find themselves in that unfortunate situation. Comprehensive Car Insurance costs more than Third Party but is most people’s preference – it covers the cost of crash repairs or replacing a vehicle, (even a Lamborghini) and you if you are injured, even in an at-fault accident.
2. Determine who will be driving the car
Who you are – and those you let get behind the wheel – can affect the price of the insurance premium you pay and whether an insurer will pay for damage. Some factors that are taken into account when determining your policy price include: your driving record and insurance history (claims made), age (higher excesses apply to those under 25), gender (some insurers are more lenient on women as they are statistically better drivers) and postcode.
3. Consider the style of your car
There is, of course, a difference between insuring a modified or high performance car and, say, a family sedan. Generally, the cost of insurance for high performance cars is pricier, so a specialist car insurer may be the way to go for added benefits.
4. Decide how much excess you want to pay
Paying a higher excess will lower the cost of the premium. The opposite is also true: some insurers will give you the option of paying no excess at all and instead charge you a higher premium.
5. Choose between market and agreed value
How much is your car worth? Many insurers offer to cover market value – the price they can get for a car at the time of a claim. Agreed value is the value agreed upon between an insurer and a consumer before a claim is made. Think both of these through before you take out a policy.
6. Try for a no-claim bonus
No-claim bonuses can considerably lower the cost of premiums. The top no-claim bonus of 60 per cent takes about five years to obtain. Some insurers offer protection on a no-claims bonus, which could allow a person to make one claim a year without losing their top rating – though, often at a price.
7. Don't lie
Telling tall tales can mean an insurer will refuse to pay out a claim. Like other insurances, there is a legal obligation to disclose information that might affect the insurer's decision in determining a person’s risk factor.
8. Assess a company’s little extras
Good service can be worth a lot when choosing an insurer. Little extras may include having the choice of repairer when an accident occurs, them footing the bill for accommodation if an accident happens while away in the country, or having access to weekend emergency assistance.
9. Look at discounts
Discounts may be available to a person if they have another policy with the same company, have been a customer for eons or their car has anti-theft devices installed. Sometimes having your home, car and other insurance with the same provider can save you a chuck of cash. It’s worth considering.
10. Shop around!
The insurance game is competitive – there are many providers to choose from so shop around. Going with the biggest name doesn’t guarantee the best value or the best service when you need to make a claim. The easy way to start your research is online, followed up by a couple of calls to your preferred companies asking the same questions so you can compare them accurately against each other. Another option is to seek assistance from an insurance broker.
