Where to look for cheap car insurance
Where to look for cheap car insurance
In a climate of rising fuel prices, car tax band changes and congestion charging, many UK motorists are looking at their car insurance renewal as a way of saving themselves some cash. The bad news, according to the AA British Insurance Premium Index, is that drivers have been hit with an average £20 rise in car insurance premiums in the three months leading up to June 2008.
So are the days of cheap car insurance coming to an end or can we still save money?
Choose the right type of cover for your needs
One of most important factors in the cost of your car insurance is the level of cover that you choose. There are three types of car insurance cover available in the UK:
• Third party cover – This is the most basic form of car insurance and the minimum level of car insurance required by law. It covers any injuries or damages to a third party as a result of an accident but it does not cover you or your car.
• Third party fire and theft cover – This adds protection against fire and theft to the standard third party cover. It still does not include personal accident cover.
• Comprehensive cover – How comprehensive your policy is depends on the options, or ancillary covers, that you choode. This could mean adding a courtesy car, legal assistance, windscreen cover and more.
Obviously the more comprehensive your policy, the more protection you have. However some drivers, particularly young motorists, may prefer more basic cover to keep their costs at more affordable levels.
Where to find cheap car insurance
It`s vital to remember that there is no such thing as `market-leading` car insurance policy – some can be cheaper than others on average, but every insurance quote differs depending on your circumstances, where you live, your job, your driving history and, of course, the car you drive.
Consequently it`s important to take as thorough an overview of the market as possible. This can be done quickly and simply using a comparison website. You simply enter your details and the comparison site will retrieve quotes from a number of car insurance companies on your behalf - in some cases over 80 – saving you both time and money.
Comparison websites are the easiest way to save money on car insurance – however, even if you don`t use one of these services you should still shop online as most providers offer their cheapest deals on the internet. Often, providers will offer 10-20% discounts to customers who get a quote online, although these discounts should also be factored into the quotes retrieved by comparison sites.
Which car insurance provider is the cheapest?
Research from a comparison website shows that swiftcover.com and Kwik-Fit are the cheapest car insurers on average in the UK with average premiums of £277, however you should not assume that they are the cheapest for everyone.
There are numerous car insurance providers in the UK including the AA, Admiral, Asda, Auto Trader, Barclays, Bell, Bradford & Bingley, Budget, Bullseye, Churchill, Debenhams, Diamond, Direct Choice, Direct Line, Elephant, Endsleigh, esure.com, its4me, Ladybird and many more. When comparing quotes you should consider not just the cost and who is cheapest, but also the level of cover on offer.
For example, a 26-year-old driving a 2007 Ford Fiesta Style, parked in a garage overnight with five or more years` no-claims and a £250 excess could pick up a quote as low as £318.15 through Privilege car insurance – however, this does not include a courtesy car or legal assistance. If these options are included, the same driver could pay an annual premium of £333.90 through Virgin Money car insurance and enjoy additional peace of mind. It`s also worth bearing in mind that many insurers charge an additional premium if you opt to pay by monthly instalments rather than in full. This can make a seemingly cheap quote rather more expensive.
Many car insurers automatically renew policies every year but you should always shop around and compare quotes before you accept the renewal price offered by your current insurer. Use their renewal notice as a prompt to make a car insurance comparison online to see if you can find a better deal.
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