Nature of car insurance
Some motorists cringe at the mention of 'car insurance premium'. Not because of the stress of renewing their policy on expiry, but rather how they'll 'fork out' their next instalment. The last decade has seen the steady rise of premiums nationwide at an alarming rate that getting a cheap premium is getting more difficult by the day- without concerted efforts. Although car insurance policies can be very expensive, it's mandatory for every driver to buy one before driving on the road.
Why get a motor insurance policy?
Most countries practice compulsory car insurance for every motorists that drives a vehicle. Especially here in Great Britain, it is a vital requirement for every motorist to have a policy on any car they drive. The major advantages of being adequately covered are::
Provide safeguard against claims from third parties attempting to claim from you if you are the cause of the accident- but because you're covered against third claims, your policy will pay out instead of leaving you out of pocket .
It's always advisable to always be on the right side of the law- driving without a valid insurance would lead to your vehicle being impounded or you may even risk a driving ban for not adhering.
Risk for not having a valid insurance policy
Driving without a valid insurance policy constitute a driving offence. You risk the following if you're caught driving without a cover:
1, You may incur endorsements on your licence which may hinder your ability to secure a job that involves driving or even risk losing your licence all together.
2, It's common for persistent offenders to get couple of months or even several years ban for not having an insurance policy on the car they drive.
3, Offenders do get minimal or massive fines which will depend on how severe the offense might be- some offence may carry up to a maximum fine of £3000 if it endangers life or property.
4, In some exceptional cases persistent offenders can spend time behind bars.
Things to observe before taking out a car insurance policy
New drivers looking to obtain cover for the very first time can easily find it confusing. With all the complicated terms, words and policies, experienced drivers might need to explain these policies to them in plain and simple language. Notwithstanding, there are vital components to analyse before settling for a particular policy. These are 4 points out of many to consider :
- The 3 levels of cover you can select from includes: comprehensive, third party fire and theft and third party only.
- The level of excess is what you pay towards the cost of repairing your car should you be involved in an accident which is either your fault or that of the third party, typically higher excess means lower premiums and vice versa
- Compare quotes by shopping around. Quotes differ from one insurance company to another- the more insurers you approach the more likelihood of you getting a cheaper premium.
- Always check the special conditions (European coverage, Are you allowed to drive other cars, courtesy car) contained within your policy so you don't breach any of them unknowingly
Getting the lowest premium possible using these 5 easy steps
Apparently, there is no cheapest car insurance provider. There are simply too many variables affecting the price of a car insurance policy: the type of vehicle you drive, who you are, your driving history, where you reside and your occupation all help decide the kind of quote you get for your policy. So your objective will now be to get the cheapest car insurance deal possible by:
- Getting a car that's categorised to fall within the low insurance group. For example, smaller engine sized cars like Fiat Punto, Vauxhall Corsa all fall within the low insurance group of cars as a result of their small engine capacity. In actual fact, the smaller the engine size of your vehicle the lower your insurance premiums are and bigger engines attracts bigger premiums.
- Your level of excess is the amount you contribute towards repair of your vehicle should you be involved in an accident. Two types of excess- voluntary excess is amount you volunteer to pay while compulsory excess means an amount you must contribute. The higher your excess the lower your premium. Avoid over inflating your excess as the amount will be required of you should you be involved in an accident.
- Leaving your car in a locked up garage at night can help lower your premium as it reduces the risk of theft and damage from thieves and burglars. Keeping the risk of damage, theft and burglary to a minimum is what insurance companies prefer, so they reward drivers with lower premiums.
- Fitting security systems to your vehicle helps prevent the risk of your vehicle from being stolen which insurance companies value so much and are ready to reward drivers with discounts off their policy .
- Using price comparison websites to shop and compare quotes helps you save money and valuable time- websites like www.cheapcarinsurancex.org/ enables you to compare up to 110 companies within a few minutes, all done by filling one quote form.
Driving whilst under insurance protection is a lot cheaper than driving without one: The cost and penalties you incur when you drive without a policy can be astronomical. Legal claims from third parties, your car being seized or scraped and settling third party litigation are all typical examples of risk motorists can encounter for not insuring their vehicle.
However, you only get peace of mind and confidence when you drive with the right type of policy cover as your covered by your insurance company for insurable risks. Do ensure your vehicle is insured at all times before you put it on the road.