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How To Get The Most Out Of Your Car Insurance Policy

By: Mark Bartley

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If you drive, you need insurance – that's a legal requirement. But with so many companies offering a mind-boggling array of car insurance policies, even with the advent of Internet comparison sites the decision can still be a difficult one. Do you stay with your original insurer, or do you start looking around? And if so, what should you be looking out for?

What policy do you need? There are three basic types of car insurance – third party only, third party fire and theft and fully comprehensive. The major consideration for most people is the cost – how much the car is worth and how much they can afford dictates the choice of whether to choose third party only or go for fully comprehensive insurance. Cheapest by far is third party only, but this gives you limited cover. Third party only covers you for damage or injury caused to a third party, it does not cover damage caused to your vehicle in the event of an accident, nor does it insure you for theft or fire damage. At the other end of the spectrum, fully comprehensive car insurance covers you for almost all eventualities. It is always best to choose fully comprehensive car insurance, but if you're under 25 this may be prohibitively expensive.

Some providers also provide specialist insurance policies for drivers who may only do low amounts of mileage every year, or who are over 50 and considered to be 'safer drivers'. Although these may provide excellent policies, there are restrictions such as who can apply and what level of mileage you can do each year. It is wise to double check that any kind of specialist car insurance will not restrict your annual car usage to an unsustainable level. For general car insurance, it is wisest to choose a policy that suits your particular circumstances.

The one thing that can drive the cost of your car insurance up is the additional extras offered by the provider – things you may think you need, but before you click 'yes', stop for a moment and consider whether you actually need them. Additional extras such as windscreen cover, breakdown recovery service or adding named drivers to the policy can make a considerable difference to the final total. In the same way, how much excess you choose to pay will also affect the final bill – the lower the excess you are prepared to cover out of your own pocket, the higher the cost of the policy. If you already have independent breakdown cover, there is no point including that in your car insurance policy as well, and this cost alone can make a big difference to how much you pay. Windscreen cover is often comparatively cheap, but again, if you already have this form of cover through an alternative outlet, it's not something that you will need on your car insurance.

No claims bonuses can make a big difference to the cost of your car insurance. If you have not claimed for any accidents, damage or theft for several years (usually five), this is taken into account by the insurance company issuing the policy. The longer you avoid making a claim, the more the no-claims bonus mounts up, telling the insurer that you are a careful driver and therefore pushing the cost of your insurance down. Adding named drivers such as a partner or spouse can add a small amount to your insurance, but be particularly careful if you are planning to add a younger driver to the policy, as this can increase the cost of your car insurance considerably.

When your car insurance is due, instead of sticking to a policy that may be no longer adequate for your needs, shop around. Remember that, although it is a legal requirement to be able to drive, car insurance is still just a 'product', and you are the customer. So ask your potential insurers some hard questions and don't be afraid to try something new – haggle. It may seem alien to a nation that is notoriously bad at bargaining, but if you don't ask, you may miss out on a great deal. Consider exactly what you need and make sure you don't 'double up' on optional extras such as breakdown recovery or windscreen cover.

Article Source: http://depositarticles.com/

This and other related articles by Mark Bartley will help enhance your understanding and awareness of the car insurance market. Look out for more coverage on car insurance in future articles.

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