Car Insurance Guide

Car insurance cover is a must for any active driver in the UK, driving a vehicle without any form of insurance cover is illegal and you could face a hefty fine up to £800 and 6 to 8 points on your licence. This will result in you losing your licence if you are on your two year probationary period after passing your test.

So now that you understand that insurance is compulsory, why not make the most of it, save money where possible and optimise whatever cover you have.

There are three main types of car insurance covering different situations with different prices. The cover you need and the cost you pay heavily depends on your car, home and lifestyle.

Here is a basic outline of the three main policies:

Third party – this cover is the cheapest and is best taken out if the vehicle is of low value, it does not cover your own vehicle in the event of an accident, only other parties involved.

Third party fire and theft – this policy covers everything what standard third party covers but it will also pay out if your car is damaged due to fire or replaced if stolen.

Fully comprehensive – this cover is the most popular cover in the UK and costs more than the others but covers your vehicle in the event of most incidents including accident damage or even accidental damage. Fully comprehensive will also cover any legal bills you may incur through an accident.

One other method to obtain is to become a named driver on someone's policy, ideally a parent as being associated with an experienced driver will reduce the amount you will have to pay. Many people, often without knowing drive their cars when the main driver is in fact their parents, this is called fronting and will make your cover void if you have an accident.

Tips top save money

Park your car on a drive or in a garage, this will make it less likely to be stolen. Also, install an immobiliser if your car does not already have one.

Do not modify your car, this will make it more attractive to thieves and will increase the chance of you speeding and therefore increases your chance of having an accident.

Change insurers every couple of years as the benefits for new customers are a lot better than they are for returning customers.

Take an advanced driving course such as the pass plus, this could reduce your policy by up to 10%.

Add a named driver to your policy, this can reduce your premium if you are associated with an experienced driver.

Avoid making a small claim as you will lose your no claims bonus, only consider making a claim worth over £500.

Shop around and compare your quotes. This can be best done online; there are numerous price comparison sites which enable you to compare all aspects of a number of quotes so you can find the best deal for you for the lowest price.

Follow these points to ensure you find the most appropriate cover for you and your vehicle for the cheapest possible price for your car insurance