Car insurance and no claims discounts

Car insurance and 'no claims' discounts

Car insurance is a legal requirement for all UK motorists. If you're caught without it, then you're liable for a fine or a driving ban.

There are three different types of insurance available for UK motorists. These are as follows:

Third party

Third party insurance will cover damage or loss caused in the event of an accident to other drivers involved, but not you. It's the basic requirement for UK motorists.

Third party, fire and theft

This type of insurance offers a similar level of cover to third party insurance, with the added benefits of cover for your own vehicle in the event of damage or loss caused by fire or theft.

Comprehensive

This level of insurance will provide extensive cover for your own vehicle. It is the most expensive of the three options, but could provide the greatest piece of my mind.

All insurance companies will have a set of exclusions to their policies. These are circumstances in which you will not be able to make a claim. They vary with each company, but a universal exclusion is if you are involved in an accident and are found to be under the influence of alcohol or drugs. Not only will your insurance be void and any costs will be your responsibility, but you will also receive a driving ban and possibly a prison sentence.

No-claims bonus

Proof of safe driving has the potential to dramatically lower the cost of your insurance. There are a number of ways of demonstrating your lack of risk to insurers.

If your driving history is free of insurance claims after a certain fixed period, then you will make yourself eligible for a no-claims bonus, a sometimes noteworthy discount on your policy.

You can also demonstrate your safety on the roads through your driving record. If you have a history of driving convictions for offences like speeding or driving without due care or attention, your insurance will cost a lot more due to an increased risk of being involved in a road traffic accident.

There are a number of ways in which you can achieve cheaper car insurance.

1. Drive Safely

By taking a cautious approach to motoring, you will avoid accidents and driving penalties, leading to potentially cheaper insurance.

2. Consider your excess

By agreeing to a higher voluntary excess, you could make yourself eligible for a cheaper quote. But always be certain that the level you set this to at is a level you can always comfortable afford should you need to make a claim. Category One offences like death by dangerous driving can make insurance impossible or immensely expensive to obtain.

3. Invest in security

By fitting a Thatcham-approved device such as an alarm, immobiliser or tracker, then you could save money on your insurance.

4. Avoid modifications

Modifications need to be declared to your insurer, and they usually mean a more expensive insurance premium. This is for a number of reasons - notably the increased attraction of thieves, the greater likelihood of being involved in a road traffic accident if the vehicles performance has been upgraded, and the higher cost to the insurer of replacing the parts. By avoiding changes to your vehicles exterior or interior, you will keep the price of your insurance down.

5.Fix your mileage

Agreeing to drive within a fixed mileage will decrease your chances of being involved in an accident, and the price of your insurance will reflect this.

6. Shop around

The good news for consumers is that the car insurance marketplace is crowded, and there are many companies vying for your custom. Finding the cheapest quotes is easier than ever thanks to comparison websites: these allow you to compare the prices and features of many different companies by just entering a few details.


	Registered Charity No 1020438