More tips to help you save on your car insurance

Car Insurance Advice

Where there is a car, there is almost certainly a car insurance policy. But just as there are different types of car, so there are different types of car cover.
If you drive a cheap runabout only at the weekend, you will need a different policy from your neighbor who commutes to the office in an executive saloon.
But whatever car we drive, we all need advice on the best motor policy with their essentially being three different types of car insurance from which motorists can choose:

The three different car insurance types

Third party car insurance cover is the legal minimum requirement and is the most basic policy. Third party insurance pays out if you damage another person or their property, but does not cover your own car. So, if you smash into the back of another car, you cannot claim for any damage to your own vehicle.
Third party fire and theft is the next level up from this; providing the same levels of cover afforded through third party car insurance but also insures your own car against loss or damage by theft or fire.
Then there is fully comprehensive car insurance, which offers maximum coverage to you and your vehicle.
Most people assume that third party insurance is cheaper than comprehensive cover. Well, it makes sense that the premiums would be lower if the protection is more limited. But these days you can often buy a comprehensive policy for the same price or only slightly more than third party insurance. So it is always worth comparing prices on different types of policy.
To find out more about the different levels of cover, visit our car insurance policy types page.

Don't be tempted to drive uninsured

Whether you opt for third party or comprehensive, car insurance isn't cheap. The average policy now costs more than £900 a year, according to figures from the AA. It is therefore easy to understand why some of us might be tempted to drive without insurance cover in an attempt to save money. However, this would be a mistake - and it could prove costly.
The government recently introduced rules to crack down on uninsured motorists, known as Continuous Insurance Enforcement (CIE). The rules basically mean that if you tax your car, you must also insure the vehicle, even if it is sitting idle in your garage. Your car is exempt only if it has been declared off the road with a Statutory off Road Notification (SORN) from the DVLA. Anyone caught flouting the rules will have to pay a fine and could face court action.

Where are you covered?

Motor insurance does not only cover your car in the UK, but also often insures the vehicle if you drive in Europe. But you should pay particular attention to the policy details if you plan to take your car abroad as you might only have the minimum legal level of cover. In other words, a fully comprehensive car insurance policy in Britain might only cover third party damage in France for instance. Most policies also only cover motoring abroad for a limited number of days, typically up to 90 a year. If your existing policy does not provide adequate cover for motoring abroad, you can usually buy additional short term insurance to cover travel to other countries.
There is more advice on driving abroad on our European car insurance page.

What are you covered for?

It is a good idea to check whether any policy includes breakdown cover, which can be a lifeline if you are motoring abroad. European breakdown cover is not automatic, even if it is a benefit of your UK policy.

The impact of age

Young drivers often struggle to find an affordable car insurance policy because they pay higher premiums than the average motorist. The higher premiums are not a result of some ageist conspiracy. Instead, they are the result of statistics. The figures show that young drivers are more likely to be involved in an accident and are therefore more likely to make a claim.
Young drivers can often lower their premium if they add an older, more experienced driver to their policy - perhaps mum or dad. The insurer is comforted by the presence of a motorist who has some miles on the clock, and so is happy to cut the cost of cover. But be careful. You should not put your mum or dad down as the main driver of the policy if they use the car only occasionally as this is a tactic known as fronting and is deemed illegal.

Why the car you drive matters

Your choice of car can also affect your premiums - a souped up Ferrari will be more expensive to insure than a Ford Fiesta. So it is worth checking a car's insurance rating before you buy.
Every car manufactured in the UK is put into one of 50 car insurance groups, based on a number of factors including its engine size and the likely cost of repairs. The lower the car insurance group; the lower the likely cost of cover.
You can find more details on this on our car insurance groups page.

No claims discount

Claims are costly for insurers so one of the best ways to cut your car insurance premium is to build up a no-claims bonus or discount. Most insurers reward careful drivers with a discount - and it can add up. If you can manage five consecutive claim free years, you could earn a discount of up to 75% in some cases, although the size of discount varies between insurers.
The main driver usually earns the no-claims bonus, but some policies also allow a named driver to accumulate a discount, which could reduce the cost of cover when they eventually buy their own insurance.
Motorists can often pay an extra premium to protect their no claims discount. They can then usually make a certain number of claims within a year without forfeiting their bonus. Although it costs more to protect your no-claims discount, the price is often worth paying. You can read more about the no claims discount and its effect on your premiums on our car insurance no claims bonus page.
There are a number of other ways that motorists can bring down the cost of car insurance cover, including agreeing a bigger voluntary excess and driving fewer miles. For more ideas on how you could reduce the cost of your premiums, take advantage of our money saving tips.

What if you have an accident?

If you have to make a claim on your car insurance policy, you have probably been involved in an accident. So it's not going to be pleasant or easy. You are likely to be shaken and confused, possibly even hurt. Of course, if anyone has been injured, then you should call 999. You should also contact the emergency services if the other driver leaves without stopping.
Try to keep calm and get the names, addresses and telephone numbers of anyone involved, including any witnesses. Try also to note down as many details of the incident as possible, including the cars involved, the date and the time.
It's a good idea to sketch out how the accident occurred while it is fresh in your mind - and take photographic evidence on your mobile phone if possible. Never admit liability for an accident at the scene or offer to pay for any damage which has been caused.
And contact your insurer as soon as possible because there is often a time limit on claims. The insurer will then process the claim and arrange for an assessor to come and look at the vehicle.
It is important to give as much information as possible to the insurer - and always to be honest. If you fail to disclose any relevant details or if you lie about a claim, you could invalidate the policy.