Feel confident that you’re covered on the road, with insurance that pays out for accidents, damages and more. Take the wheel and choose a level of cover that suits your needs.
If you own a car, you’re legally required to insure it.
If you’re caught without insurance, you could face an unlimited fine and get six points on your driving licence. In worst case scenarios, your car may be repossessed, and you could be issued a driving ban.
There are only a few instances where you aren’t legally required to have car insurance:
There are three levels to car insurance:
This is the minimum cover level you’re legally required to have. It covers the other driver in the event of an accident and any passengers present in your vehicle.
It doesn’t cover you, meaning you’d have to pay out of pocket for your own vehicle damage and any injuries.
This is the same as third party cover with a couple of additional benefits. It covers your vehicle if:
Comprehensive cover offers the highest level of protection. As well as third party damage, fire and theft, you’ll be covered for the full cost of accidental damage to your own car.
There are usually also additional extras you can add to your policy at a price. For example, breakdown cover and personal injury cover.
This depends on the level of cover you’re willing to pay for and whether you want to potentially pay out of pocket in the event of accidents.
Shopping around for policies with different providers will give you an indication of the price you might expect to pay. If you need help working out which type of insurance is right for you, you may want to work with a broker.
If you own a high-value car (typically worth more than £60,000) or a car that has specific needs (like a classic car or sports car), you’ll need to factor in your additional needs and costs. In most cases, you’ll need to take out a specialist policy.
This will ensure you’re covered for the full cost of repairs and the sourcing of any special parts. It sometimes means you can choose who your vehicle is repaired by, meaning you can select a specialist mechanic that you trust.
All cars in the UK belong to a specific insurance group, numbered from one to fifty. The higher the number, the more expensive your insurance premium will be.
The group your car is placed in depends on a few factors, including the value of your car, its security features and the power of the engine.
Ultimately, insurers are trying to work out what risk you present to them and how much it would cost to repair or replace your vehicle. The higher the risk and cost, the higher the number you’ll be placed in.
If you’re in the market for a new vehicle or you’d like to see where your current car sits, you can use a free online car group checker. There are plenty to choose from and they’ll tell you which group you’re in, which will give you an indication of the price you could expect to pay for your insurance.
As well as your car’s insurance group and the type of cover you choose, there are a few other factors that affect your insurance premium. Unfortunately, the majority of these are out of your control.
Whenever you make a claim on your car insurance, you’ll usually need to pay a set amount towards the claim. This is called an ‘excess.’ There’s compulsory excess, which is set by your policy provider, and voluntary excess, which is an additional amount you can choose to pay.
If you choose to pay voluntary excess, it could reduce the overall price you pay for your insurance. Just remember that you’ll need to pay excess every time you make a claim, so you should only pick an amount you can realistically afford.
The more excess you pay, the less you’ll get from your claim amount. As an example, if your excess is £300 and you make a claim for £1,000, you’ll only get £700.
If your insurer finds you not at fault for your claim, then you could get your excess waived. You’ll typically need to pay your excess upfront while your insurer investigates the claim, meaning you’ll get your excess back retrospectively.
You can sometimes add excess protection to your policy, which means you can reclaim your excess at an additional cost.
There are a few things you can do to lower the cost of your next policy without sacrificing on protection:
With so many providers and policies to choose from, it’s easy to get overwhelmed by your options and go with the first policy that suits you.
To make sure you aren’t overlooking insurers that offer the same cover for a lower cost, it’s important to set aside the time to search the market.
If you’re short on time or don’t know where to start, an insurance broker can do the hard work for you.