Car insurance is one of life's necessary expenses but although almost everyone has it, a lot of us don't really know what we're looking for when we're shopping for the best policy. In a bid to save money a lot of people will choose the cheapest insurer that they can find and won't read the small print of their policy, consequently ending up with car insurance that doesn't cover their needs.
Generally, cheap deals are only cheap until you have an accident or breakdown and then the insurance company will need a large compulsory payment from you before they'll pay out or you'll have to pay a large amount to have your car towed home and fixed because breakdown cover isn't part of your policy.
You could also find that simple things such as windscreen cover or driving outside the country won't be covered either or they may pay out less than other companies if you have an accident. When choosing insurance these things are generally desirable if not essential and every person's main priority should be to get the maximum payout available if they're involved in an accident that wasn't their fault.
In order to avoid choosing the wrong insurance and being left vulnerable for twelve months make sure you know this essential information.
- Surprisingly, a lot of people don't know the difference between comprehensive and third party insurance. Third party insurance is the minimum cover that you can have on any vehicle and covers only the damage that you cause to other people and their property because of your driving. Third party fire and theft is the same as third party except it also covers your vehicle if it is damaged in a fire or stolen. Comprehensive cover covers everything detailed above as well as your own vehicle too - even if the accident is your fault.
- When you take out insurance you will be asked about your annual mileage and you should be honest about it. The average mileage is just over 8,000 miles but in order to be safe most people opt for a limit of 10,000. If you know that you do significantly more miles than this then you should be honest because if you ever need to claim and your odometer suggests that you do more miles than you stated then your claim could be reduced.
- You should also be aware of the excess that you're liable to pay if you have an accident. Your age, driving experience and the car that you drive will all factor into the compulsory amount that the insurance company will expect you to pay should you have an accident.
- A courtesy car is not something that is automatically given if you have an accident. If you would require a courtesy car to get to work etc. if you had an accident then you need to add it on when you receive your quote as an optional extra - this will bump up the price of your premium slightly too.
- Finally, according to Austin insurance company “Nation Wide”, there are a number of things that will affect your premium that many people are not aware of. Points on your license, convictions such as using a mobile while driving and drink driving offences will all cause your premium to rise sharply. You need to be honest about your convictions when you take out insurance otherwise your insurance might not be valid at all.