In the UK, it’s a legal requirement that vehicles driven on public roads be insured. This means that you’ll be covered in the event that you collide with another motorist, member of the public, or piece of property.
But insurance products come in many, many different kinds. As such, it’s easy to be confused when you’re shopping for them. Let’s take a look at a few of the more common mistakes made by those shopping for car insurance, and see how we can avoid making them.
Failing to Research
You should have an idea of what the going market rate is for your most reliable cars – or, better yet, what the best possible rate is. This will not only allow you to choose the best policy; it will also give you leverage when you come to phone your insurer and negotiate a better price.
You can usually determine the best price using a comparison tool. Just be aware that certain insurers are not on price comparison websites. You should also research whether an insurer is reliable. Look at their history, and make sure that they are listed on the appropriate websites.
Buying minimal coverage
You’re legally obliged to take out a third-party liability policy. This is what will protect others – but not you. This is something you might regret later, especially if your vehicle is taken off the road. Look into comprehensive cover instead. Often, the price difference between the two is negligible.
Failing to get a black box
When your vehicle is equipped with a tracking device, your insurer will have a better idea of the risk they’re assuming, and your policy will be accordingly cheaper. Telematics devices, as they’re called, are easy to fit, and could save you substantially.
Choosing the wrong voluntary excess
This is the figure that you’ll pay when you come to make a claim. If you choose a high excess, then you’ll get a cheaper premium. This is a balance of risk and reward. You should choose to pay an excess when you’re reasonably confident that you won’t have to do so – but you should still settle on a figure you can actually afford.
Not looking after your No Claims Bonus
If you go year after year without making a claim, then you’ll signal to insurers that you’re a reliable driver. This is a good reason to avoid making a minor claim, and thereby preserve your no-claims bonus. Alternatively, you might pay extra to safeguard the bonus.
Letting the policy lapse
If your insurance policy runs out, then you won’t be able to drive the car. This is a common mistake made by those switching to a new provider. This is an excellent reason to contact your new insurer and have them arrange to transfer your policy.
Also, you may prefer all risk insurance that protect you from construction defects.
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