What to look for when choosing car insurance

When it comes to choosing car insurance, the truth is that most of us are looking at price first. However, that isn’t the only factor that’s worth bearing in mind. Discover a few ways to maximise your coverage while minimising your costs, with our guide on what to look out for when you’re picking out your car insurance.

Choosing your insurance type

The first thing to consider is which kind of car insurance you’re looking for. There are two main types, third-party and comprehensive. Third-party is the minimum level of protection required to legally be able to drive your car on the road, while comprehensive offers more coverage.

With third-party insurance, you’re only covered for the damage you might accidentally cause to someone else’s property. So, if you’re at fault in a car accident and both cars are damaged, your insurance would only cover their damages, not yours. Comprehensive car insurance protects you too. There are also different levels of comprehensive insurance, where you can choose cover for things like fire or theft too.

Considering your circumstances

If you’re thinking about car insurance because you’re about to buy a new car, then it’s the perfect time to consider how your choices might impact your insurance costs. For example, a new driver picking out their first car may not be best serviced by one with a big engine, as they are already marked as a more risky driver. Choosing a car designed to hit top speeds will only increase that perception – and up your insurance prices.

Think about your car type

The type of car you choose might affect which type of insurance you want to go for. For example, if you’re driving or buying a used car with lots of miles on the clock, then third-party insurance might be all you need. If it’s a brand new, top of the line car, then you’re better with comprehensive insurance, because the cost of repairing or replacing your vehicle might be very high.

Balance up excesses and premiums

When you take out car insurance there are two important costs to consider. One is the premiums and the monthly cost of your insurance policy. The other is the excess that you’ll be expected to pay if you need to make a claim. Typically, you can reduce your monthly payments by opting to pay a larger excess. However, it’s worth thinking about whether you’re likely to have the funds to pay a high excess if you end up needing to make a claim.

Look closely at the features

Be sure to have a close look at the features on offer. Not all policies are created equally, and some will have more attractive features than others. For example, if you’re looking at comprehensive insurance, you want it to cover either market value or have generous allowances when you need things replaced or repairs.

Always get a few different quotes so that you can compare your options. Insurance providers may use similar methods to work out their policies, but the bottom line can vary a lot.