Choosing your car insurance is an important decision. The cover you buy protects you, your vehicle, other road users and their property, and even the property owned by neighbours of the roads or other public spaces where you are using your car.
Even if you were to compare any of the logbook loans online, you are required to have and also maintain insurance on your vehicle throughout the loan.
The problem is that there are so many different choices to make, you may find the selection almost overwhelming. So, here are a few suggestions about choosing the most suitable car insurance for you.
You are likely to make comparisons before buying any goods or services – and car insurance is no different.
You decide what it is you need and compare the products available in a competitive market place. By comparing like with like, you aim to identify the product that appears to offer everything you need at a price that represents good value for money.
Car insurance is an especially competitive market and the sheer number of variables in making any selection, may make your choice especially difficult.
For that reason, the British Insurance Brokers’ Association (BIBA) suggests that you consult a broker, who has wider experience and expertise in the market and may shop around on your behalf, saving you the time-consuming task of trying to compare so many different products and still overlooking some vital element of cover you may have needed.
The following might help to explain how quite so many variables may be involved in choosing the most suitable car insurance for you.
The first point to stress is that the car insurance you choose is the one that suits you. Not every driver’s needs are the same, not all cars are equal, and not all pockets the same depth.
In other words, no one size fits all when it comes to car insurance. The cover that meets your particular needs and circumstances is very much an individual decision.
If you own or want to drive a car, you have no option but to buy motor insurance.
A minimum of third party insurance is a legal obligation whether you intend to drive the vehicle on the road or in any other public space, or even if you are not using it (the legal requirement is still there under so-called “continuous insurance enforcement”). The only exception to the need for insurance is if you have obtained a Statutory Off Road Notification (SORN) from the Driver and Vehicle Licensing Agency (DVLA).
Third party cover is required so that you are certain of being able to meet claims for damages from anyone injured whilst you are driving your car or has their own property damaged.
The penalties are already stiff if you do not have a SORN and are the keeper of an uninsured vehicle – but they are even steeper if you are caught driving without insurance.
Third party insurance may be a legal requirement, but it offers no protection if your car is stolen, catches fire or is damaged as the result of your actions (if the damage is another driver’s fault, you are protected by the third party insurance they are required to hold).
To protect your vehicle against theft or accidental damage, therefore, you need either:
A description of these different levels of motor insurance is included in a guide published by the Consumers’ Association’s Which? magazine.
How much you pay for your car insurance depends on a whole host of factors, which together constitute the risk which any insurer considers it is covering. Those risks are assessed by factors such as:
Some of the additional factors affecting the price you pay in insurance premiums include:
As is probably clear, there is a wide range of variables involved in choosing the car insurance that meets your needs and requirements – which are also likely to change from one year to the next.
Because of those changes, and the variations in prices that are involved, it is a good idea never to automatically renew your car insurance from one year to the next, but to consider carefully just how your needs may have changed, whether new products have come onto the market, and whether you may find better value for money elsewhere.