Car insurance might be a necessity but that doesn’t mean it should simply be a box-ticking exercise. After all, it’s your safety net in case things go wrong. With that in mind, We shares advice on how to make sure you get cheap car insurance quotes that actually give you great value for money.
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A big part of making sure you get value for money is to consider all levels of car insurance — there are three to choose from:
- Third party only — policies compensate other people for injury and damage you cause but won’t pay to repair or replace your car if you’re involved in an accident.
- Third party, fire and theft — includes third party only and will also compensate you if your car is stolen or damaged by fire.
- Comprehensive — includes third party, fire, and theft and will also pay to fix or replace your car if it’s damaged in an accident you cause.
As the lowest level of cover available, it’s often assumed that third party only is the cheapest option. In the past that might have been true but over time, insurers found that third party policyholders made greater claims compared to those with comprehensive cover.
Since then, premiums have been adjusted and comprehensive cover can actually work out cheaper. That said, third party insurance may be the cheapest type of policy for some drivers but this will depend on a whole host of factors, including age, job, and the car they have.
The point is, it’s crucial to keep an open mind and compare all policies because depending on your circumstances, you could find that comprehensive cover is the more cost effective choice.
Statistics show that young drivers are more likely to be involved in an accident which means car insurance for those under 25s is much higher than for other age groups. But telematics insurance can help keep premiums down.
If you choose a telematics policy, a device or app will monitor the way you drive, focussing on acceleration, speed, cornering, and braking. If you drive consistently well (and follow the rules of the road), your premiums could fall faster compared to not having a telematics policy.
Exactly how quickly your premium could fall really depends on the insurer and the policy you sign up for. Some will review data and your premium every few months while others will only review it at renewal.
Telematics insurance isn’t just for drivers under 25 and they could be worth considering by anyone that wants to be rewarded for good driving — for example, drivers with penalty points.
Most insurers will give you the option of bolting on extra features to your policy in order to increase the number of events that are covered, for instance:
- Breakdown and recovery
- Windscreen cover
- Legal expenses
- European cover
- Misfuelling cover
Consider what you need as every additional item you add will increase your overall premium. This is why comprehensive car insurance can often work out better value, as many will already include these features. In contrast, you’ll usually have to pay extra to add them to some third party policies.
Some features, like legal expenses (which covers court costs and compensation), are extremely useful. Other features (like European cover) are nice to have but fairly redundant if you never drive to Europe.
For every year you drive without making a claim, you earn one year’s worth of no claims bonus. This will give you a discount off your premium at renewal. The more claim-free years you have, the bigger the discount.
The amount of discount given varies by the insurer but it could save you as much as 65% or even 70% with some insurers. Remember that building up your no claims isn’t about never claiming, it’s about thinking carefully about what you claim for.
Instant money saving tips for great value car insurance UK
Thinking about policy features and building up your no claims can help you secure the right car insurance at the right price. On top of that, you can make further savings with these quick wins:
- Paying for your policy annually instead of installments which include added interest
- Increase your voluntary excess which lowers your overall premium
- Invest in car security like an immobiliser
- Drive fewer miles or be accurate about your mileage rather than overestimating it
- Add a more experienced named driver to your policy
- Compare policies from as many insurers as possible to ensure you get the very best deal available at comparison sites like mustard.co.uk.