Why do I need car insurance by Hunger For Money?

Why do I need car insurance by Hunger For Money?

Car insurance is a legal requirement for any person driving a vehicle in the UK. Driving without insurance could result in a hefty fine, points on your drivers licence, or even the removal of your licence altogether.

Whilst many see car insurance as an unnecessary expense, it can turn out to be extremely rewarding if you ever find yourself in a sticky situation. It covers you if your car is stolen, involved in an accident or if you cause accidental injury or damage to another vehicle or property.

Covering the costs of vehicle damages or injuries to others without car insurance is not feasible, hence why car insurance has become part of the law.

What are the different types of cover?

There are three main types of cover for car insurance. Each type is designed to suit specific individuals, so make sure you fully understand each cover to find the right car insurance for you rather than simply heading for the cheapest option.

Third Party

All drivers are legally required to at least be covered with Third Party insurance. It offers the most basic form of cover, offering protection if you damage someone else’s car or cause injury to someone in an accident. It also covers you if you cause injury to passengers of your car. This is often a popular choice for first-time drivers, cheaper cars, and those on a budget.

What is and isn’t covered?

•     Injuries to others, both in your car and other vehicles.
•     Damages to property or other vehicles.
•     The cost of legal claims against you.

Isn’t covered

•     Damages to your car.
•     If your car is stolen.
•     If your car is destroyed by fire.

Third Party Fire and Theft

This type of policy is offers slightly more cover than the legal requirement but it is still limited in what it protects you from. It covers you in the same way that third party car insurance does but it also includes cover for fire and theft. This is often a popular choice for those who need a bit more cover without the price tag.

What is and isn’t covered?

•     Injuries to others, both in your car and other vehicles.
•     Damages to property or other vehicles.
•     The cost of legal claims against you.
•     Replacing your car if stolen.
•     Damages to your car as a result of attempted theft or fire.

Isn’t covered

•     Other damages to your car.
•     Cover for your personal injuries.
•     A pay out if your car is written off.

Comprehensive Cover

This is the most complete form of car insurance you can get, so if you’re looking for top cover, this is the option for you. Comprehensive car insurance covers you for third party, fire and theft, as well as you or your own vehicle in the event of an accident.

What is and isn’t covered?

•     Injuries to others, both in your car and other vehicles.
•     Damages to property or other vehicles.
•     The cost of legal claims against you.
•     Replacing your car if stolen.
•     Damages to your car as a result of attempted theft or fire.
•     Damages to your car.
•     Cover for your personal injuries.

What specific type of car insurance is right for me?

    Multi car. Multi-car policies are a great way to save money on your car insurance if you have more than one car you require insurance for. Insurance companies offer discounts if you are looking to insure multiple vehicles with them. You can usually insure up to five cars with this type of policy.

    Learner drivers. If you are hitting the road as a learner in between lessons then you’ll need car insurance to cover you whilst you practice. It is often a lot cheaper to add a learner to an existing policy rather than taking out separate cover.

    Black Box. Opting for a black box policy is another way of saving on your car insurance. A telematics box or black box is fitted into your car and measures how well you drive. This information is then sent back to your insurance company who then assesses your premiums, taking into account your driving habits. This policy is a popular choice for young drivers, facing expensive premiums.

    Temporary. It is possible to get car insurance cover for a short period of time, usually between 1 and 28 days. This may suit young drivers home from university or you’re visiting friends or family and need to borrow their car.

    Classic car. If you’re a classic car enthusiast you’ll be pleased to know that it won’t cost you a fortune to insure your pride and joy. Premiums are based on the idea that classic cars are regularly maintained and used less frequently than a normal car, resulting in lower milage. It’s worth considering that in the event that your car is stolen or written off, some insurance policies will only pay out the ‘market value’ of the car, which can by much lower than it’s actual worth. To avoid this, opt for a policy which allows you to agree a value price.

    Young drivers. Car insurance for young drivers is sadly, very expensive. This is because, drivers under the age of 25 are less experienced and more likely to make a claim. Whilst it may seem impossible to afford car insurance as a young driver there are a few ways to save on your policy, check them out below.

Compare insurance rates by car make and model

Find car insurance rates for individual car makes and models. Your car’s make and model is the #1 factor that determines your insurance costs. Just click on the brand(s) you’re interested in below to get started.

10 ways to save money on your car insurance

1. Don’t auto-renew.

Don’t let your policy renew with the same insurer year on year without checking the market. It’s a good idea to compare quotes before your policy is up for renewal and see if your current insurer will match or better what you’ve found.

2. Pay a higher excess

An excess is the amount you contribute when you make a claim. If you voluntarily increase this amount, your insurance company perceives you as less likely to make a claim. This helps bring down the cost of your overall premium.

3. Try a black box

A black box could dramatically reduce your car insurance as long as you drive well. Drive poorly though and you might see your insurance increase.

4. Restrict certain drivers

Most policies will give you a cheaper premium if you restrict certain drivers from taking your wheels for a spin. Consider restricting drivers like under 25s, seniors or learners if you are able to do so.

5. Add a named driver

Adding an experienced driver to your policy can help to reduce your premiums. If the experienced driver is listed as the main driver then this could significantly reduce you costs. If the experienced driver is not the main driver then you should not list them as so.

6. Choose the right vehicle

If you haven’t purchased a car yet, compare insurance prices for a variety of car models. You might be surprised about how much the car you drive can affect how much car insurance costs you.

7. Build up a no claims bonus

Your driving record and claims history are used to determine how much of a risk you pose to the insurance company. Therefore if you have a good driving record and haven’t lodged many claims, insurers tend to offer a ‘no claims bonus’ meaning a discount on your premiums if you haven’t claimed over 4 or 5 years.

8. Increase your car’s security

Simple things such as parking in a garage instead of a main road could reduce your car insurance as your vehicle is less likely to be stolen. Ask your insurance provider what you can do to increase your car’s security and decrease your premiums.

9. Compare, compare, compare

It pays to do your research. Get multiple quotes from different insurers to compare prices. Don’t be fooled by policies that are ridiculously cheap – this can sometimes compromise your cover. Don’t be afraid to switch providers in order to get the best deal.

10. Take advantage of discounts

Look around to see if you can get a loyalty discount or a deal as a new customers.

Looking for extra cover?

   Breakdown cover. This means that if you break down at any time, you can call someone to come and help get you out of trouble. Your provider will send someone out to you to try to fix your car or tow the car to a garage. Check out our guide on breakdown cover here and compare breakdown cover providers.

    Courtesy car/hire car cover. If your car is being repaired or has been written off after a claim, this extra cover means you’ll be provided with an extra vehicle.

    Legal expenses cover. Insurance providers can cover the legal costs of you taking someone to court in order to reclaim any costs as a result of an accident. It can cover you for pursuing compensation for medical expenses, hire car costs, loss of personal items such as jewellery. It can also cover you if someone brings a claim against you.

    Cover for driving abroad. Whilst your insurance policy will already cover you for third party insurance abroad, you may want to consider taking out extra coverage. It wouldn’t break the bank to add fully comprehensive cover onto your policy and it may end up saving you a fortune.

    Windscreen cover. Repairing a windscreen can cost you a lot, so this additional extra may just be a saving grace. For a few extra pennies, your insurer can cover the costs of any chips and cracks in your windscreen.

    Personal accident cover. This will cover you if you or your partner suffer a serious injury as a result of a car accident. Your insurer would pay to help with medical treatments, lost income and recovery costs.

    Replacement key cover. If you lose your keys or they’ve been stolen then this cover the cost of replacing them.

    Protected no claims. If you have protected no claims cover then if you were to make a claim then your no claims bonus would stay intact. To purchase this you normally need to have about 3 or 4 years of no claims.

How to claim if you’ve had an accident?

If you’ve been involved in an accident, you might decide to make a claim. To increase the likelihood of the process going smoothly, keep the following tips in mind:

    At the scene of the accident. Don’t admit that you were to blame. You should make a note of the names, contact information and registration numbers of the other people involved in the accident. You should also get hold of and record the number of the police report, if it applies.

    Before you make the claim. Consider all the consequences that might arise as a result of making a claim. You should also make sure that you’re fully aware of any excess obligations you might have you accept that you could be loosing your no-claims bonus.

    Making a claim. You must give the insurance company complete and accurate information surrounding your accident as clearly and as quickly as possible.

    Fill out a formal claim form if necessary. If available, provide as many supporting documents as possible and make sure that the insurance company acknowledges that your claim was received. Next, you’ll have to answer any questions that are relevant for the assessment of your claim and, to ensure everything goes smoothly and you get an answer as quickly as possible, make sure you stay up to date with how your claim is progressing.