How to choose the right insurance for your vehicle

Not only does having car insurance make good financial sense, it is also a legal requirement. Even if you’re not the main driver of a vehicle, you must have at least a basic level of cover in place. However, finding the right insurance for your car isn’t always an easy task, especially when there are so many options available. To help make the decision process a little easier, take a look at this simple insurance guide.

Comprehensive cover
Comprehensive car insurance is the highest level of protection available. As well as incorporating all the basics of third party, fire and theft, it also covers accidental damage, even if it’s your own fault, as well as repair costs and vandalism. Most fully comprehensive policies also include additional benefits. For example, Chill car insurance includes windscreen repairs and breakdown cover.
Some policies will also allow you to legally drive other people’s cars. However, bear in mind that this cover is third party only and you won’t be protected if you damage the car you are driving.
Third party
Third party is the most basic level of insurance and the minimum cover required by law. It protects you against claims made against you, such as personal injury or damaged property. You can also opt for third party fire and theft cover that will give you basic cover as well as fire, theft or damaged caused by attempted theft.
Third party cover is most suitable for people who own cars that are worth less than £1,000. You may also decide to opt for third party if you don’t have a no claims bonus or you live in a high-risk area for crime.
No claims bonus
If you don’t make a claim within the policy, most insurers will offer you a no claims bonus which will increase every year. However, if you have an accident and claim for it, your premiums will increase and you may lose some of your no claims bonus. If you don’t make a claim after an accident, your no claims bonus will remain intact but your premiums may still increase.
With some insurers, you have the option to pay for no claims discount protection that allows you to make claims without this having an impact on your bonus.
Excess
If you come to make a claim, you will usually have to pay a set amount yourself. This is referred to as the ‘excess’. The amount of excess you pay will vary depending on the type of claim you make. For example, it will differ according to whether the incident in question concerns fire, theft or accidental damage. To lower the cost of your premium, some insurance companies will allow you to increase your voluntary excess.
Check your policy carefully
To ensure you are getting the right amount of cover, it’s important to check your policy carefully before making a purchase. For example, you may want to check to see if you are covered for personal belongings inside the car, stereo systems, windscreen damage, breakdown assistance and loss or theft of keys.
When taking out insurance, it’s important to provide your insurer with accurate details. If you fail to do so, your policy may be invalid, resulting in you having to fork out for large sums if you ever need to make a claim.