If you’re about to embark on buying car insurance for the first time, you’ll almost certainly be at a greater risk of paying considerably more, and this is particularly true if you’re a young driver. That’s why we’ve compiled five of the most need to know insurance facts to get the ball rolling on your first car insurance policy.
- Know exactly how much insurance you need
Working out just how much insurance you need can be a daunting task, but once you know the factors you need to consider, you’ll be able to estimate it better. Reports show that almost a third of drivers in the UK are paying more than they’re required simply because they failed to incorporate certain things into their search. When it comes to car insurance, the general rule is the higher risk you are, the more insurance you’ll need and factors including age and location can contribute to this. Online car insurance calculators can give you an accurate estimate of just how much you should be aiming to pay.
- Add a second driver to your policy
You might think that adding a second driver to your policy will boost the cost of your insurance, but it can actually do quite the opposite. Adding an ‘occasional driver’ to your policy who has been driving for longer than you can cut your premium by as much as £1,000. This is primarily because car insurance is all about risk so by adding someone who is deemed a lower risk alongside you, a higher risk, the costs should balance out, and you should find yourself paying an affordable amount. Another way you can reduce the cost of your insurance is by minimising your risk, and you can do this by simply adding a security device to your car or making sure that it’s parked in a garage when it’s not in use. The more the insurer sees that you’re taking car of your car, the more likely you’ll be seen as a responsible driver.
- Third party is not always the cheapest option
There are three main types of car insurance; third party only, third party fire and theft and fully comprehensive. Understandably, those who are taking out car insurance for the first time may assume that third party only is the cheapest option, but this isn’t always the case. By choosing a more comprehensive cover, you’ll essentially be tricking insurance providers into believing that you’re less of a risk and this can sometimes save you as much as £1,500 annually.
- Always compare costs
You could make big savings by doing something as simple as comparing car insurance policies through comparison websites which is why it’s always worth spending some time looking for the best deal. Always make sure that you use a number of different comparison sites, as not all companies will appear on all sites and some big insurers aren’t shown at all. First isn’t always best, nor is cheapest, so by keeping these facts in mind, you should find it easier to choose a plan that will be both cost effective and cover what you need it to. You should always be aware that comparison sites may send your personal details to insurers so that they can find you the best deal.
- Know how to set the right excess
Those seeking first time insurance may want to consider going for a policy that has a higher excess. This refers to the amount of claim you have to pay yourself and will result in lower premiums. More often than not, in the event that a claim amounts to less than £500 worth of damage, the future cost of your insurance will increase and even invalidate any no-claims bonuses you might be on track for. Some insurers will even charge less for premiums if you pay a £1,000 excess, so it’s definitely worth considering if you want to save money in the long run. Of course, in the event that you have a bigger claim, you’ll have to shell out more money out of your own pocket.