5 Things You Need To Know Before Getting Car Insurance

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Car insurance is a necessary evil. We don’t want to pay for it, but it’s a legal requirement and we want the protection just in case we should ever need it, even though we all hope we won’t. When finances are tight, which is likely the case for many of us, it’s good to be mindful of how to save money on it. This sponsored guest post takes a look at a few things it’s good to know about before purchasing or renewing your insurance.

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Whether you’re insuring your car for the first time or renewing current insurance, there are some things that you need to keep in mind. Researching about auto insurance is just as important as researching about the car you’re going to buy because it is a considerable investment you’re making for your future. You want to be covered in the event of an accident, while not paying more than you have to. Here are just a few things you need to know about car insurance.

How Car Insurance Prices Are Determined 

Firstly, it’s helpful to get an idea of how car insurance prices are calculated. Some of the main factors that go into determining the cost are ones that are pretty much out of your control or seemingly unrelated to your driving, like your age, gender, employment and marital status. Whether you believe it or not, insurance companies think that these factors play a fairly significant role in finding out how responsible the car owner is and what the probability of them getting into an accident may be.

Another thing that goes into determining the price is the place where you live, and thus where you keep your car overnight, as some states are a lot more accident or even theft prone than others. Then there are car-specific factors like how many miles you’ll be driving, how long you’ve held your licence and how many (if any) years of no claims you have.

Collision & Comprehensive Coverage

Another thing that you need to consider before you get auto insurance is the difference between collision and comprehensive coverage. A lot of people get confused between the two things, so it’s important to do your research on what the types are and what you need. Comprehensive coverage provides protection against theft. It also includes protection against damage caused by natural causes such as fire, flood, hail, or a storm. On the other hand, collision coverage only reimburses you if your vehicle collides with another vehicle. 

In the UK, there are three main levels of insurance: Third Party, Third Party Fire & Theft, and Comprehensive. Comprehensive is the highest tier of cover, which provides everything from the second tier plus repairs following an accident, accidental damage and also vandalism. Think about what it is you need, or might need in future; you don’t want to pay more than you have to, but it might save you money in the long run if you have to pay out of pocket for an expense that isn’t covered.

Expensive Vehicles & Insurance Policies 

One of the biggest myths is that a more expensive vehicle means that it is going to cost a lot of money to insure it. In some cases that’s true, but it’s not always the case. Even if your car is pricier, you can still look to save money on the policy.

It’s a good idea to look into the insurance prices for the specific car and model you’re buying to get a feel for the costs, factoring in your own personal information and driving history. Shop around and consider that extra safety precautions, like keeping your car in a locked private garage at home or using any theft immobilising technology, might take the edge off the premium a little.

Get Car Insurance Quotes From Different Providers 

It can be tempting to do the bare minimum with insurance because you don’t have the time or the desire to shop around. However, if you want to save money then you’ll need to spend a bit of time researching and checking for deals. To do that, you should be ready to browse the market for the best auto insurance packages.

Before you finalize any deals, you should take quotes from different providers and compare them with each other so that you know that you are spending your money where you are getting the most benefits. If you’re thinking of renewing with your current provider, you could use these quotes to help you barter for a better deal.

Comparison sites can be helpful, though it’s often a good idea to use a few of them and confirm any specific quotes of interest by going directly to the provider’s website. Cashback sites are also worth checking if you’re taking out a new policy with a new provider, which could give you back either a small lump sum or percentage of the cost after buying the insurance online.

Review The Insurance Policy 

Last but not least, when you have done all your research and narrowed it down to a particular insurance provider, you should review the policy in a bit more depth. Now’s the time to speak to the provider if you have any questions, or even see if you can knock the price down any further by giving them a call. It’s always worth checking.

Read the small print and ensure you’re being told everything you need to know about the insurance, how to make a claim and any exclusions on the cover. You don’t want any nasty surprises further down the line, so get as much information as you can to make an informed decision.

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[ This is a sponsored guest post & as such the ideas expressed here are that of the author ]