Car insurance is one of the most expensive parts of driving, and is unfortunately also a legal requirement. Car insurance comes in several forms, and gets cheaper the older you get and the longer you go without making a claim.
Third Party, Fire and Theft car insurance is the cheapest option, and will cover any damage done to the other person’s vehicle should you be at blame for a crash, and any damage done to your car should it be involved in a fire or stolen. It doesn’t, however, cover you for any repairs to your own car should you be involved in a crash deemed to be your fault, or a crash where both drivers are at fault.
This type of insurance is ideal for drivers of cars which have relatively little value, as in some cases the extra cost of fully comprehensive cover can be more than the value of the car they drive.
Fully Comprehensive insurance covers drivers for everything a third party, fire and theft cover does, but also covers the drivers car in accidents that are their own fault. Most fully comprehensive cover also covers repairs to chips in your windscreen, and makes a full replacement of the windscreen a lot cheaper.
This type of cover is ideal for people with higher value cars, where paying for extensive repairs or a replacement in the event of a crash would be unaffordable.
After having car insurance in your own name for a year without making a claim, you will build up a year’s no claim bonus. This will be recognised by all insurance providers, and gain you a discount on your insurance when you take out cover for the following year.
The more years no claims bonus you collect, the cheaper your car insurance policy becomes.
Car insurance providers currently assess your application against a database of statistics to determine how much your policy will be for the year. Males, for example, are deemed more likely to crash their vehicle than females, so will be charged less. Everything from age, job type, colour of the car and type of additional features like alloy wheels can make a difference to your quote, so it is important to shop around, as different companies hold different statistics, and the difference in your quotes will be substantial.
Some insurance companies offer you the chance to protect your no claims bonus, so even if you do have to make a claim, you will still hold onto your no claims discount, but will have to declare the claim the following year when receiving quotes. 5 years no claims can offer up to a 60% discount on a policy, so this option is important to many dirvers.