Discount Car Insurance

Having insurance for private cars is a legal necessity in the UK and over the last few years, private car insurance premiums have been rising. However, no law says that one has to buy insurance that is expensive. Being able to buy car insurance that is inexpensive is possible, but it takes some work. For example, there is no point to signing up with a company that specializes in senior citizens car insurance when one is 17 years old, because they will not provide any benefits for the younger drivers.

Potential car insurance clients now have so many options available to them when it comes to buying an insurance policy that choosing the best one becomes confusing and difficult. The best policy is one that satisfies the individual needs the best. This means that one must first decide how much insurance one needs. Getting too much insurance means one will end up paying for a service they may never use and not having enough coverage could mean major financial setback in case of an accident.

There are three main types of private motor insurance cover – comprehensive, third party fire and theft, and third party only. The comprehensive coverage level covers the cost of one’s own car damage due to an accident, fire or theft. In addition, damage or injury to a third party is covered in case of an accident. The third party fire and theft provides cover to any damage or injury caused to a third party in case of an accident, and protects one’s own car in case of fire or theft, but will not pay for any damage to one’s own car in case of an accident. The third party only will only pay for damage or injury to the third party involved in an accident. Obviously, the third party is the cheapest form of insurance, while the comprehensive is the most expensive. Third party coverage is good in cases where one is driving an old vehicle and the repairs due to an accident will cost more than the value of the car.

There are a number of other ways one can get discount car insurance and save money. Many insurers provide discounts to drivers with Pass Plus. Pass Plus is a driver training course designed by the Driving Standards Agency (DSA) with help from insurers. Since statistics show that new drivers have greater chances of being involved in an accident within the first two years after passing their driving test, the course trains new drivers to avoid the common mistakes and hence, accidents. The amount of discount one gets depends on the company one insures with.

Since everyone is going green, car insurers are also jumping on the bandwagon. Many companies are reducing premiums for drivers with hybrid or electric cars. The thinking behind the discount is that if drivers are conscious about the environment, then chances are greater that they will be more careful on the road also. This translates to lower risk for the insurance company and thus, lower premiums.

Another way to get discount car insurance is to insure two or more cars with a company or get more than one type of insurance from the same company. These savings can add up to significant amounts, especially if one of the drivers is a young person. This is because the shared sense of responsibility is taken as a positive sign in the younger driver’s behaviour by the insuring company.

Additional ways to save include paying higher excesses that reduces premiums. Excess is the amount that the individual has to pay before the insurance company will cover the remaining amount. The higher the excess one agrees to pay, the lower the monthly premiums will be. Companies give clients the option to make their payment as a single yearly lump sum or on a monthly basis. Making a lump sum payment usually earns one a discount, while many times it may not be an amount significant enough to justify making a single payment. Check to find out how much the selected company gives. Also, the amount of time one has the car on the road will impact the insurance rates. So minimize the car mileage by carpooling or using public transport when possible.

The No Claims Discount (NCD) also entitles one to major reductions in premiums. This is earned when one does not make a claim on the car insurance company in the previous one year. A majority of the insurers allow clients to collect up to five years NCD and allow clients to earn greater reductions each year. After the five years, no significant reductions are given. Very few companies are even willing to give NCD for up to nine years. One year of NCD is typically around 30 percent and it increases up to 65 percent over the five year period. A handful of insurers offer 75 percent discount for no claims between nine to eleven years.

Buying discount car insurance online is the best method of saving money. Car Insurance Comparison UK allows drivers to compare quotes from multiple insurance providers according to the individual needs of clients. Visitors to the site are guided through the process of filling out the required information in the single form, which is then used to get the quotes with a single click. The service is totally free, so it saves the visitors even more money. The comparison tool at www.carinsurancecomparison.co.uk allows one to find the best deal possible in a short time from the convenience of their home.

It is a good idea to have certain pieces of information ready so that getting a quote is fast and easy. A driver’s licence will be needed to verify identity, previous insurance company’s details, and elderly people will need any relevant medical documents. The address will also be needed as some areas are considered to be higher risk than others by insurance companies. Odometer reading will be needed to determine how old the car is and how many miles one will be driving in a year. Lastly, the make and model of the car will be needed to get a quote.