All you need to know about car insurance explained
This is a collaborative post but I thought you would like more information on car insurance so wanted to share it with you anyway.
You’re legally obliged to get at least third-party insurance when driving in the UK. According to the government, driving without insurance is a serious offence and could cost you £600 and 6 penalty points. What’s even worse, if the case goes to court you can be charged an unlimited fine and completely barred from driving.
Now that we’ve covered how important car insurance is – let’s get into specifics, such as how car insurance works, why is it mandatory, car insurance groups and much more.
How car insurance works
There are three main types of car insurance – third party, third party fire and theft, and comprehensive.
You must at least have third-party insurance, which covers damage to another person or vehicle. Something to keep in mind – if you’re buying only third-party insurance, it is more expensive than purchasing the other two – fire and theft & fully comprehensive.
It’s because drivers that only take out third-party insurance are considered higher risk by the insurance brokers.
Gap insurance
Gap insurance can cover you only if you already have fully comprehensive car insurance. If a vehicle becomes written off or stolen, then it will be covered by GAP insurance. It is especially useful in situations where you still have to pay for the remaining finance.
When to buy car insurance
It was found, that the best time to buy insurance is eight days before the renewal. Meanwhile, the most expensive car insurance quotes were recorded a day before the insurance ended. Not surprising, since leaving things last minute always tends to be more expensive.
It’s also best to shop around before the insurance is due, instead of just automatically renewing it. By comparing different prices available for the type of insurance you need, you ensure that you’re getting the best deal possible.
Car insurance groups
There are fifty groups in total, with the first one being the cheapest and the fiftieth – the most expensive one. It depends on a lot of elements what the total cost of the insurance will end up being:
Car Make and Model
The more powerful the car – the pricier the insurance. So check whether the car is in a luxury category, as well as its bhp (brake horse-power), before purchasing if you want to save on the insurance.
Age
It costs a lot to insure a car if you’re a young person that just started driving, it is one of the most expensive for this age group (17-19). In the meantime, the opposite applies if you’re older and have more driving experience.
Location
In the UK, cities, such as Bradford, Oldham, Manchester, Liverpool, and Birmingham are considered high-risk, therefore, insurance cost rises. Villages and towns in Scotland, such as Inverness, and South of England like Cornwall enjoy lower premiums. It’s because cities are more dangerous with more crime and theft when compared to smaller rural areas.
Additionally, whether you park the car in a garage or outside can make a big difference. Vehicles left outside are more at-risk than those safely parked inside.
Job Title
Just as with location and age, your job title also affects how much the insurance costs. Certain professions are associated with higher risk levels than others. For example, footballers have the highest insurance costs as they tend to drive fast sports cars. In the meantime, headteachers and coastguards are at the low end of the spectrum.
One well-known trick for cheaper insurance is to slightly modify your job title. For example, instead of declaring you’re a journalist, it won’t be a lie to say that you’re a writer instead. As a result, the cost will go down, because journalists are deemed high-risk due to their hectic lifestyle, while writers don’t chase people around with expensive equipment.
FAQ
Q: Will car insurance replace a windshield?
A: Many insurers cover broken or damaged windshields if you have comprehensive insurance. However, if in doubt, it’s best to check with your insurance provider.
Q: Will car insurance automatically renew?
A: It’s up to you – if the car insurance policy is set up to renew automatically then yes, it will renew. If not – then you’re free to stay with the same provider or look for another one that offers better prices and deals.
Q: If I want to drive my car abroad, is it covered by my UK insurance or should I get a specialised one?
A: Usually insurance providers, will provide you with insurance that is as valid in the EU, as it is in the UK. However, for some countries, such as Russia, Moldova, Turkey, and a few others you’ll need to show proof, such as a green card. Make sure to get one at least a month before to avoid disappointment. Most EU countries don’t require a green card, but before travelling check carefully.
Conclusion
Knowing the type of insurance you need and will benefit from the most, is paramount. It is just as important to research the insurance as it is what type of car to purchase. Which type of insurance do you think is the best? Share it in the comments down below!