Buying car insurance is a necessity for everyone in the UK. To legally drive in the UK, you will have to present proof of your car insurance upon request. So how do you go about choosing the right type of car insurance?
Choose Third Party Cover to Save Money
First, you should know that there are three main types of car insurance in the UK. Third party, third party fire and theft, and comprehensive cover are all options that you may want to consider. If you are looking to save money, the least expensive option will be a third party policy. You can purchase one of these policies to protect you if you are at fault in an accident and someone else is injured or their car is damages.
A third party fire and theft policy has the same type of cover, but it also has fire and theft protection for your vehicle.
Comprehensive cover will cover the costs in an accident to your vehicle and the other party’s vehicle, but it is quite a bit more expensive than a third party policy.
Discounts and the No Claims Bonus
Another way that you can save money on your car insurance is to take advantage of discounts and the No Claims Bonus offered by most insurers in the UK. The No Claims Bonus will allow you to receive a percentage of your premiums back if you do not file a claim in a specified period of time. With some companies, the No Claims Bonus can also be protected if you do not file a claim for five years or more. This is an advantage because it will allow you to get a certain amount of your premiums back each year even if you do file a claim on your insurance.
Companies may also offer you a discount if you purchase your policy online. If you are a loyal customer to an insurance company, you may also be eligible for a discount. You should ask your representative about any other discounts that you may be eligible for because these are typically not listed and you must inquire to get the discount.
Compare Policies from All Major UK Car Insurance Companies
One of the best ways to save money on your insurance is to compare policies from different companies. By making a car insurance comparison, you will see the different rates offered by each company so that you can choose the most affordable policy that offers you the amount of cover that you need.
Increase Your Excess
If you are looking for a way to decrease your monthly premiums, you should consider changing the excess that you will pay. An excess is the amount that the company will require that you pay up front if you are involved in an accident. By increasing your excess, you can significantly reduce the premium that you are required to pay each month.
Other Discounts to Consider
If you buy multiple policies from the same company, you may also be eligible for some sort of discount. Your insurance policy will be calculated based on the amount of time that you drive, so you can also reduce your premiums by cutting down on your driving time. Anti-theft or security systems can also help you land a lower premium on your car insurance policy.
Another factor that will affect your insurance premiums is your driving record and credit history. Drive safely and build good credit in order to find the best premiums available, and make sure to compare policies even if you are happy with your current policy just to make sure that you have the best rates available.