Getting insurance for your vehicle is a legal requirement in the UK, but with so many different policies and providers out there, it can be a minefield trying to choose the right one for your needs.
The cover you need will depend on factors like the type of vehicle you drive, how much you use it, your driving history, and your personal circumstances.
This guide will walk you through some top tips to help you select the best insurance policy to keep you comprehensively covered while getting value for money.
Decide What Level of Cover You Need
The three main types of vehicle insurance are:
- third party only,
- third party fire and theft, and
- comprehensive (fully comprehensive).
At the very minimum, you need third party only cover to drive legally, which covers injuries or damage to other people and their property if you cause an accident.
However, many experts recommend going for a comprehensive policy. This provides cover for damage to your own vehicle too, as well as other beneficial extras like windscreen cover, courtesy car, personal accident protection and more.
While it’s more expensive, a comprehensive policy gives you the highest level of protection if anything goes wrong.
The UK’s FREE vehicle insurance reminder service.
Road tax, MOT, insurance & maintenance alerts totally FREE.
Helping 1,000’s of UK drivers avoid penalties & stay legal on the road.
Consider Your Individual Circumstances
Think about how you use your vehicle and any special requirements this might necessitate in an insurance policy. For example, if you drive long distances, you may want higher levels of breakdown cover included. Or if your vehicle is particularly powerful or valuable, you might need a specialist high-value vehicle policy.
If you have any claims, convictions or points on your licence, you’ll need to declare these as it will impact your premium price. Some policies also offer cover for personal belongings, which could be worthwhile if you store valuable items in your vehicle.
Get the Right Level of Cover
Once you’ve assessed your insurance needs, you can start comparing different levels of cover from providers. As well as third party and comprehensive cover, some companies offer additional options in between, like:
- Third party, fire and theft – This covers third party damage, as well as repairing or replacing your vehicle if it’s stolen or damaged by fire.
- Third party only with additional benefits – E.g. cover for driving other vehicles, windscreen cover, courtesy car etc.
Consider how much excess (the amount you’d pay towards a claim) you would be willing to pay too. Increasing your voluntary excess can sometimes reduce your premium.
Compare Costs and Policies Carefully
These days it’s very easy to get quotes from multiple providers online to compare costs. However, don’t just go for the cheapest option without scrutinising the policy details. Cheaper policies may have more exclusions, restrictions and less additional benefits, so weigh up costs versus cover levels.
Double check exactly what is and isn’t covered. For example, some policies only cover social and domestic driving rather than commuting too. Others may have lower limits on personal belongings cover than you need.
Check Out the Extras
Some policies include appealing extras like:
- Courtesy car
- Personal accident cover
- Cover for personal belongings in your vehicle
- Key cover (repairs/replacement fobs and locks)
- Cover while driving abroad
- Legal expenses cover
While they make a policy more expensive, these extras could be invaluable if you ever need to claim on them, saving you a lot of money in the longer run.
Increase Your Security
Your premium is partly based on the security measures and steps you take to prevent your vehicle being stolen or damaged. Things like keeping your vehicle in a locked garage, having an immobiliser or alarm fitted, and additional security marking can all reduce your costs.
Some providers offer discounted policies if you fit an approved tracking device too. So considering ways to improve your vehicle’s security can pay off.
Build Up Your No Claims Bonus
An important way to reduce your premium costs is to build up a good no claims bonus (NCB). This gives you a discount for every year you don’t make a claim on your insurance policy.
Insurers typically offer discounts of around 30% after 5 years and up to 60-70% if you have 9 years or more NCB. So it really pays off to drive cautiously and avoid making claims if possible to maximise this bonus over time.
Pay Annually If Possible
Finally, while paying monthly instalments is more convenient, you’ll usually pay more overall than if you opt to pay your annual premium in one upfront lump sum payment. This comes with interest charges from most insurers. So if you can afford it, pay the whole premium annually to save money.
Make sure you shop around for a good deal. The easiest way to do this is with plenty of time on hand before the insurance policy expires or renews. For this reason, using our independent , free insurance reminder service could save you a lot of time & money.
In Summary
Take the time to assess your unique insurance needs based on your vehicle, driving requirements and personal circumstances. Don’t just accept the cheapest policy, but carefully compare cover levels, exclusions and extras to get appropriate protection and good value for money.
By following tips like improving security, building a no claims bonus, paying annually and reviewing extras – you can construct the right insurance policy at a reasonable cost. Getting the cover right gives you financial protection and peace of mind while driving.
