Friday, 3 June 2011

What is the best car insurance?

'Best' does not exist
There is no such thing as the 'best' car insurance. No single car insurance policy can suit everybody, as everybody's circumstances differ and many factors influence the type and price of a policy.

It's not possible to say the cheapest quote is the best quote, as a cheap policy might end up costly when it comes to a claim. On the other hand, a fully comprehensive cover might also not be the best option, if your car is worth less than your annual premium.

The best car insurance is a policy that is tailored to your specific needs and circumstances, offering you best value for money. Read on for a few things to consider.
The best insurance for your car
The type of insurance you opt for will often depend on the value of your car. If your car is worth less than £1000 then the best car insurance for you would usually be third party, fire and theft cover. This way, if you make a claim, other parties involved will still be compensated. Also, in the event of a fire or theft you will be covered. If your car is only worth £800 then it is not worthwhile paying for fully comprehensive cover every year -the yearly premium for that could be more than your car is worth.

Obviously the decision is up to you, and you may want the extras that come with comprehensive cover.

Drivers and the best car insurance
The more drivers you add to your policy, then the more expensive it will become. But sometimes it's unavoidable and if your additional drivers are experienced, and the car you are sharing is of a high value (i.e. over £5000) then you may wish to take out comprehensive insurance.

If you can avoid adding drivers who will only be using your car infrequently then you will make large savings. Often, it is more economical to take out temporary insurance every once in a while for other drivers, rather than have them included on your policy.
Best insurance for your age
If you are a young driver car insurance companies will penalise you heavily for your inexperience. But, there are ways to keep these costs down. The easiest way is to simply apply for third party cover. If you make a claim because of an accident you will at least know other people involved will be compensated.

It is also likely that your first car will be inexpensive, and so covering the car itself will be less of an issue.

If you are an older driver with an expensive car then you may be best searching for quotes for comprehensive cover. In the event of an accident, damage to your car will be repaired, as well as damage to the other cars involved. Comprehensive cover also includes cover for things you may not have even thought of, such as windscreen damage and personal injury.

Also, if you are experienced and have a clear driving record, with no claims bonus, your premium should be relatively low. This may mean you are able to afford a higher level of cover, such as fully comprehensive. It is worth remembering that individual insurers offer different options on their comprehensive cover. If there is something specific you would like covered, then you should enquire with the insurer you choose after using our comparison service.
Best insurance if you have a no claims bonus (NCB) 
The more no claims bonus you and your additional drivers have, the greater the discount you will get on your car insurance premium. For example, if you have five years no claims bonus then you will get up to a 65% discount off your insurance. The theory behind this is that the fewer claims you have made in the past, the fewer you will make in the future - and this is exactly what insurers are looking for.

The same applies to all three types of insurance cover so that choice doesn't matter when you are considering no claims bonus. However, your additional drivers must be aware that their no claims bonus' won't usually continue to build up whilst they are on someone else's policy.

There are some insurers that specialise in increasing additional drivers' NCB, and while our comparison service won't highlight them, you will be able to ask them individually if you choose their premium.


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