There is no such thing as the 'best' car insurance deal. No single car insurance policy can suit everybody; everybody’s circumstances differ and many factors influence the type and price of the policy an individual chooses.
Cheapest doesn’t always mean the best, even if you are looking for the one that is most convenient for your pocket. The cheapest policy may not suit you in the event that you have to make a claim. On the other hand, a fully comprehensive cover may also not be the best option, for example, if your car’s value is less than your annual premium.
The best car insurance is a policy is the one that is tailored to YOUR specific needs and circumstances whilst at the same time, offering you best value for money.
The type of insurance you opt for will often depend on the value of your car. If your car is worth less than £1000 then the best car insurance for you would usually be third party, fire and theft cover. This way, if you need to make a claim, other parties involved will still be compensated. Also, in the event of a fire or theft you will still be covered. If your car is of minimal value, it is not practical to pay for fully comprehensive cover every year -the yearly premium for that could be more than your car is worth.
The decision is purely that of the car owner – YOU.
Cover Types
Third Party – Normally the cheapest of the insurance levels. As it sounds, it covers you for third party only, meaning it covers for any one other than yourself or your car should you be involved in an accident. It also protects passengers who might also be in the car if you have an accident. For example, if you happened to be in an accident which you admitted was your fault, any injuries/damage sustained by other drivers and their vehicle, would be covered by your third party insurance policy. The policy of the other driver(s) would be irrelevant and you as a third party insurance holder wouldn’t have any support to cover for any damages or injury to yourself, it would have to be paid directly out of your own pocket. Third party also does not cover you in the event of a fire or theft.
It is advised that car owners get a third party policy when their car is valued at less than a £1000. It is a common policy among new drivers who have cars with a lower value.
Third Party, Fire and Theft – The same as third party, with the added benefit of protection against theft or fire.
**Not all insurance providers offer third party cover on its own, so you may find that third party, fire and theft will be their cheapest policy.**
Fully Comprehensive – Fully comprehensive, again as it’s title suggests, covers pretty much everything in the event of an accident, theft or fire.
If your vehicle is involved in an accident and as a result is written off, stolen or burnt out it will be fully repaired or the insurer will pay out the current market value of the car. The car will also be covered against accidental damage caused either by yourself or another party.
There are stipulations involved with all insurance policies and it is always worth looking into the extras that insurers have to offer. This may well bump up the cost of your quote but as previously mentioned, only you can know what you want your policy to cover you for.
Legal Expenses - Legal expenses are often included as part of an insurance policy. Still you should always check it is included. If it isn’t included in your policy, It costs very little and in the grander scheme of things, could save you A LOT of money should you ever need to take a matter to court. Your insurer will use this extra cover to pay for solicitors fighting on your behalf if you claim for an injury as a result of an accident. The level of cost covered by an insurer will be stipulated in your individual policy. An average amount is around £50,000.
Courtesy Car - A courtesy car is a very simple idea that should be considered when taking out a policy. This cover provides you with an alternate vehicle should your car be in need of repair or has been written off. Your insurance provider will confirm how long said courtesy car is available to you.
Personal Injury Cover - Personal injury cover is often an insurance policy option. Insurers may try to sell it to you when you take out a policy with them. If you are injured as a result of an accident; this cover will payout depending on the severity of the injuries sustained. Its cover can range from loss of earnings to larger payouts for more severe injuries (broken bones, loss of limbs etc)
Gap Insurance Protection - Available to owners of new vehicles. If your new car is a total loss within the first year of ownership, gap insurance will ensure that the full value of what you paid for the vehicle is paid out by your insurer.
No Claims Bonus - Many insurers reward their longstanding customers with a reduction on their premium based on how many years they have been with that particular insurer without making any claims against their policy. For example, you may receive up to 65% off your premium should you go five years without making a claim. In some cases, loyalty is worth considering.
**This applies to all types of vehicle insurance, third party, fully comp etc.**
Protected No Claims – This is only available to drivers who have a minimum of four years with out claiming on their insurance. If this add on is taken out and the driver‘s no claim bonus will remain the same, even if they have needed to make a claim. How many claims you can make without affecting your NCB would need to be checked with the insurer. This may however affect the cost when you renew your premium.
Breakdown Cover – The most popular breakdown covers are offered by the AA and RAC, which is not an insurance policy in itself. Some insurance companies offer their own breakdown cover which is always in addition to a policy. It is worth looking into if the insurance company offers a decent discount on the cover.
Driving Abroad - This may already be included in your policy, however it is always best to check with your insurer before you travel. In most insurance companies will provide third party cover abroad, even if you have a fully comprehensive policy at home. For an extra cost you insurer should be able to offer you full cover whilst driving overseas.
It is possible to have more than one driver on an insurance policy, however the more drivers you have, the more expensive the quote becomes. For example, a family may decide to have a joint policy and when their children become old enough to drive, may add them onto their policy. It does follow a trend that the younger the driver the higher the premium quoted will be, which is why many young drivers opt for third party insurance and a low value car. Should you be considering the idea of adding another driver to your policy, it is worth taking into account how often said driver will be making use of the policy. If the additional driver won’t be driving very often, it may be more economical for them to take out a temporary policy based on the time period in which they need to drive for. It is also worth noting that should you accept anyone onto your policy, it is very likely that their no claims bonus will not continue to build up whilst on your policy.
The long and short of it is, is that you must choose the most appropriate car insurance for you. Don't be phased by the cheap car insurance offers as it may cost you more in the long run.
You can compare car insurance premiums with uSwitch to find the right policy for you.
