A Guide to Car Insurance

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A Guide to Car Insurance

The best advice anyone can offer you regarding car insurance is to shop around for the best deal. With price comparison websites all over the internet offering the cheapest car insurance it has never been easier. The first thing to remember is that cheap car insurance isn`t necessarily good car insurance and it might not even be suitable for your needs.

If your car has a low market value, the most basic insurance option would be a third party policy, which protects other people if you crash into them. Should your car be stolen, damaged or destroyed by fire you get nothing, as this requires the next level of insurance, third party, fire and theft, covering you for the car`s cash value in the event of a claim.

The majority of people opt for fully comprehensive cover so that no matter who is at fault, the insurance company will pay for repairs to your vehicle, including the windscreen.

For most people with an average family car, price comparison websites are a great tool, but be aware that when you ask for a quote they all make what they call `assumptions` about you. What that means is that you will get a basic price that doesn`t include things like any additional drivers or no claims bonus protection and the default excess that you would pay in the event of a claim will be quite high.

The excess amount and the total insurance premium quote are like a sliding scale of values – you increase one and the other goes down. So if you`re happy to pay a larger premium with a lower excess, all well and good. Likewise, if you want the premium kept as low as possible you must be prepared to pay a higher excess should you need to make a claim.

If you have a specialist or high performance car, it may sound obvious, but there are specialist insurers available who will offer you the best deal tailored to your vehicle. It`s generally not cheap, but in the event of an accident it`s better to be fully covered rather than find out too late that you`re not adequately insured.

There are also several `ladies only` and `mature drivers` insurers on the market so depending on your circumstances they are often worth checking out.

Check your quote very carefully and make sure you have declared everything about your vehicle and its drivers that could affect your insurance. Vehicle modifications including the addition of alloy wheels must be declared and could invalidate your policy should you need to make a claim and you haven`t done so.

When looking for a second hand vehicle in the cheap car sales ads, don`t assume that because the car is a bargain the insurance will be too. You`d be surprised how many people make the mistake of buying an old banger and end up paying twice as much to insure it, so always check out insurance options before you splash out on a new car.

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29th June 2010