What car insurance cover should you get?
Empower your car insurance journey with Motorscan as we explore the three main types of insurance coverage. We’ll break down popular add-ons, address common concerns, and equip you with the knowledge to confidently choose the ideal policy and coverage at the best premium for your budget!
Navigating the world of car insurance can often feel like driving through thick fog. So, to make the journey that little bit clearer, Motorscan has been exploring the most common types of car insurance to provide you with the essentials for choosing the best coverage. We’ll examine the three main types of car insurance available in the UK and tackle the variety of optional add-ons designed to enhance your policy. Additionally, we’ll answer drivers’ most common questions, helping you make the best decision. So, join us as we journey to find the perfect car insurance for you!
Car insurance is crucial to owning a vehicle, providing financial protection against accidents, theft, or damage. In the UK, it is also a legal necessity. Therefore, selecting the right car insurance is essential as it ensures you have sufficient coverage tailored to your individual needs and situation, offering peace of mind while driving. The right policy can ultimately save you from significant financial losses and avoidable expenses.
Third party insurance is the most basic level of car insurance required by law in the UK. It covers damage or injury you cause to other people, their vehicles, and property but doesn’t protect your own vehicle. The main advantage of third party is its affordability, making it attractive for those on a tight budget or with low-value cars.
However, the major drawback is the lack of coverage for your own vehicle, where you simply won’t be compensated for accidents you cause or in cases of theft or fire. Consequently, this basic type of insurance may be suitable if your car is of low value or you rarely use your vehicle. However, more comprehensive coverage is usually recommended for most drivers to ensure better financial protection.
This type of policy offers a middle ground in car insurance coverage. It includes all the protection of third party insurance, covering damage to others’ property and injury to other people, but also adds coverage for your own vehicle in cases of fire or theft only. This makes it a step up in terms of protection while still being more affordable than fully comprehensive policies.
Third party fire and theft cover can be a good choice if you’re looking for more security than the basic third party insurance without the higher costs of comprehensive coverage. It’s particularly suitable for drivers with cars of moderate value, those in areas with higher theft rates, or people who want some protection for their vehicle without paying premium prices. However, it’s important to note that this middle level of cover still doesn’t cover damage to your own car in accidents you cause. It only pays out if your vehicle is stolen or damaged by fire.
Fully Comprehensive insurance, often simply called ‘fully Comp’, is the highest level of car insurance coverage available in the UK. It includes all the protections of third party fire and theft policies but also covers damage to your own vehicle, regardless of who’s at fault in an accident.
This type of policy often includes additional benefits like a courtesy car, personal injury protection, and coverage for personal belongings in the vehicle. However, it’s recommended that you fully understand the policy to know what additional benefits are included and which are add-ons at extra costs.
This top-tier coverage’s main advantage is its peace of mind, providing extensive protection in almost all scenarios. However, it typically comes with higher premiums and is usually ideal for new or valuable cars, drivers who use their vehicles frequently, or those who simply want maximum protection.
Interestingly, despite offering more coverage, fully comprehensive can sometimes be cheaper than third-party fire and theft for some drivers, as some insurers find that drivers who choose fully comp coverage often represent a lower risk and are typically more cautious and responsible, leading to fewer claims. Consequently, it’s always worth comparing quotes before making a final decision.
When deciding on your car insurance, several personal factors play a crucial role in determining the cost of premiums. Details such as your age, occupation and location play a role, as insurers may charge higher premiums for younger drivers and certain professions.
The make, model and age of your vehicle also influence rates, with newer or more expensive cars typically costing more to insure, while cheaper, less extensive policies might adequately cover older, lower-value vehicles. Driving history is also a major factor; a clean driving record can lead to lower premiums, while accidents or traffic violations will likely increase costs.
Additionally, consider your annual mileage carefully, where you park your car and any supplemental drivers, which are all additional factors that can influence the final premium quote. Considering these personal aspects collectively alongside your budget and financial situation can help you find the right balance of coverage and cost for your specific circumstances that best meet your needs and financial constraints.
When journeying through the car insurance entanglement, you’ll likely come across various additional coverage options to enhance your policy. These optional add-ons often include roadside assistance, legal cover, no-claims bonus protection, personal accident cover, car key cover, car excess insurance, hire car cover, and breakdown cover, all designed to provide extra layers of cover at additional cost.
Ultimately, it’s essential to read your policy terms fully to understand what is included and what elements aren’t included before idly agreeing to every add-on benefit offered.
At the end of the day, you want to keep as much money in your pocket as you can. Similarly, you should balance the benefits of these add-ons against their costs. While they can offer peace of mind, they might not be necessary for every driver. Assess your specific needs and driving habits to decide which additional coverage options are worth investing in for your circumstances.
Common Questions and FAQs answered by Motorscan
The minimum legal car insurance requirement by law is third-party coverage. This policy safeguards against costs associated with damages or injuries to other people, vehicles, animals, or property when an accident occurs and you’re at fault.
This depends on your policy’s specific terms and conditions. Some comprehensive car insurance policies include a ‘driving other cars’ clause, which provides third-party only cover for driving someone else’s car with their permission. However, this isn’t a standard feature, and not all policies offer this benefit, and it’s usually not available to young or inexperienced drivers.
Windscreen coverage depends on the type of car insurance policy you have. Many comprehensive car insurance policies include windscreen damage as a standard feature or offer it as an optional add-on. Some policies might have specific terms, such as a separate excess for windscreen claims or a limit on the number of claims per year. Third party and third party, fire, and theft policies typically don’t include windscreen damage.
It is possible to lower car insurance premiums by making better choices, such as selecting a smaller, less expensive car or vehicle in a lower insurance group. Similarly, maintaining a no-claims bonus record, setting a genuine annual mileage as low as possible, paying your premium annually rather than monthly, adding an experienced named driver to your policy, opting for telematics/black box policies, avoiding vehicle modifications and adding security features can all impact the final premium figure. Remember to compare quotes from multiple insurers, as each insurer will have different underwriting criteria in place to evaluate the factors and circumstances that influence your premium.
A no-claims bonus (NCB) is a discount on car insurance for every year a driver doesn’t make a claim, typically ranging from 30% to 75%. It significantly impacts premiums, as the more no-claims bonus years you have, the lower the risk you are to insurers and the bigger the discount is applied. But remember, making a claim where you’re at fault can reduce your NCB, so having no-claims protection can be beneficial.
Car insurance usually covers factory-standard vehicles, so any modifications are not automatically included. You should inform your insurer about any changes or modifications you make, as they may adjust your policy and premium to reflect the altered risk. Failure to disclose changes can lead to policies being invalidated and claims being rejected.
You should first prioritise safety by checking for injuries, moving to a safe location, and calling 999 if necessary. Exchange information with all drivers involved and document the scene, including light and road conditions, weather, and any other crucial information, including taking photos and/or video. Contact your insurer immediately when convenient and file a police report if required. Cooperating with your insurer and following these steps ensures a smoother claims process and vehicle repair.
UK car insurance policies typically include minimum third-party cover for driving in European Union countries for a limited duration, often up to 30 days. This coverage protects you against liability for damages or injuries caused to others while driving in EU member states. It does not cover you, your passengers or own your vehicle. You should check your car insurance policy for foreign coverage and inform your insurer of travel plans. Obtain necessary documentation, such as a Green Card for EU countries, and purchase additional coverage if required, such as extending your cover to fully comp or buying temporary insurance for the country or countries you’re travelling in.
