Questions To Ask As You Choose Your Car Insurance
Selecting the best car insurance policy can be a daunting exercise.
There are many car insurance companies all offering what appear to be excellent insurance deals.
As you assess the different deals available you need to ensure you compare 'like with like', taking into account both cost (the policy premium) and the cover it provides.
Before getting car insurance quotes, you need to first understand the type of cover you need, Third Party Only, Third Party Fire & Theft or Comprehensive.
You will also need to decide whether you want the car purely for social, domestic and pleasure use or whether you need it for commuting and/or business use. See our article Understanding the Type of Car Insurance You Need which explains more about these areas.
Having decided the type of cover and use, consider which route you're going to follow to get your insurance. Options include
- Compare car insurance quotes on comparison websites such as Gocompare.com or Comparethemarket
- Use an online direct provider, such as Direct Line
- Use an insurance broker, found online or locally
Next there are a number of questions you might find useful to ask as you get your car insurance quotes. We have listed a number of these below. The list is not exhaustive but covers the key areas.
Which insurers car insurance policies are offered?
- If using an online site offering comparative quotes from a number of different car insurance providers, how many prices will they compare for you by filling in one form?
- Does the company target particular types of car (eg 4*4 vehicles) or profiles of drivers (eg young drivers or drivers over 50, senior drivers ) and thereby offer attractive policy coverage or price for these? Do you fall into these categories or are you looking for a company targeting the 'average' car insurance requirements?
No claims discount(NCD) or No Claims Bonuses
- What is the maximum No Claims Discount that you can build up?
- Can a No Claims Discount be protected? If offered this may be an additional cost but may be worth considering, particularly if you have built up three or more no claims years already.
The Policy Excess is the amount you have to pay of any claim you make. Usually each company will include a compulsory level of excess. In addition you may be able to add a voluntary excess to reduce the premium you pay. For example, a policy may have a £150 compulsory excess, if you then have an additional £150 voluntary excess, your total policy excess is £300. This means you will pay the first £300 of a claim.
- What is the policy excess set at for the quote provided?
- What effect is there on the quote if a different excess is applied, either higher or lower?
Are there other discounts available or incentives for taking out a policy?
- Is there a discount for purchasing online?
- Is there a discount if the car is kept in a garage overnight or on a private driveway?
- If your annual mileage is low, is there any discount available for this? If so what is the maximum mileage you can do and what happens if you exceed this?
- Is there a discount if multiple cars are insured?
- Is there a discount for holding another policy with the company eg Home Insurance.
- Does the company promise to beat your car renewal quote received from another company? If so be aware as there may be conditions you have to meet for this to apply, for example a certain number of years claim free.
- Is breakdown cover included or available at a discount? If so what level of cover is available?
- Do you need a courtesy car if your car is off the road? If the cover includes one is this guaranteed, how quickly will it be provided and for how long? Is the courtesy car provided free or at additional cost?
- Does the policy include overseas travel? Do you need it?
- Is there a discount for Pass Plus or Advanced drivers?
- Can the policy be paid for in monthly instalments or does it have to be paid in full at the start of the insurance? If instalments are offered is there an additional cost to cover this or is there a discount for paying upfront?
By carefully considering your car insurance requirements and using the above questions to help you with this, you should be able to find the best car insurance policy to meet your needs.©MoneyHighStreet.com