Motor insurance overview
Some motorists cringe at the mention of 'car insurance premium'. Not because of the stress of renewing their policy on expiry, but rather how they'll 'fork out' their next instalment. The last decade has seen the steady rise of premiums nationwide at an alarming rate that getting a cheap premium is getting more difficult by the day - without concerted efforts. And no matter how expensive a policy may be, it's still a necessity to have a valid insurance policy to drive any type of vehicle - read on to find out why having a policy is vital.
Car insurance policy: are they an option or a necessity?
In most countries, vehicle insurance is considered vital for every motorist. In the UK for instance, the law enforcement agencies are always on the prowl to enforce drivers have valid insurance policies for the cars they use. The major advantages of being adequately covered are:
To protect you from any third-party claims that may arise as a result of your negligence should you be the cause of an accident in which the third-party has incurred a significant loss or damage to their property.
Driving while un-insured can result in a driving ban of up to 5 years, attract endorsements on your licence, you might be ordered to retake your driving test and risk of incarceration for persistent offenders.
Risk for not having a valid insurance policy
Driving without a valid insurance policy constitute a driving offence. Below are some of the risks you may encounter for driving without an insurance policy:
- Having enough points on your driving licence can cause the authority to rescind your licence - for instance, accumulating up to 9 points within your first two years of driving can get you disqualified and you'll need to retake your test all over again.
- Bans are often imposed on drivers who do not have a valid insurance coverage on their vehicle, however, large fines do go with these fines depending on the degree of the offence .
- Driving without an insurance on your vehicle can attract fines, how high the penalty is will depend on the severity of the driving offence.
- A threat of prison sentence is enough to stir motorists in the right direction to get their vehicles insured.
Things to consider before taking out a policy
It can easily become overwhelming for new drivers attempting to get an insurance policy for the very first time. An insurance policy document can be complicated for new drivers attempting to buy a policy on their own but for more experienced drivers, it's easy and straight forward. Nevertheless, there are still important things to consider in a policy before even considering to buy it. These are 4 points out of many to consider :
- Make up your mind on the type of policy you want - all policy are not equal and the 3 main types are third-party fire and theft cover, third-party only cover and comprehensive cover.
- Consider the Level of excess you're comfortable with - Should incase you're involved in an accident, you'll be required to pay the excess you chose at the beginning of your policy.
- Avoid settling for the first quote that comes your way, otherwise, you'll lose out on cheap deals. Compare as many quotes possible.
- There are special conditions contained within your policy that allows you to do certain things - for instance, the ability to drive other vehicles, having a protected no-claims bonus, driving within the EU and so many other. Do try to check and acknowledge your capacity as an insured.
How to get discounts from your premium
Apparently, there is no cheapest motor insurance provider. Basically, there are overwhelming variables that can influence the cost of vehicle insurance coverage: what you do, where you live, the type of car you drive, your previous driving history and who you are all determine the amount of quotes you're charged for your policy by insurer. Your primary objective will now be to spot the cheapest car insurance deal possible by:
- Acquiring a car that falls within a low insurance group. For example, smaller engine sized cars like Fiat Punto, Vauxhall Corsa all fall within the low insurance group of cars as a result of their small engine capacity. Obviously, the bigger the engine size of the vehicle the more power it generates and the higher the insurance premium.
- Increase your excess: Apparently, the higher your level of excess the lower your policy and the lower your excess the higher your premium. Avoid inflating your excess as the amount shall be required of you should you be involved in an accident.
- Having a garage where you park your vehicle at night comes handy in reducing your premiums because of lesser risks for theft and burglary. Lowering the risk of theft, burglary and criminal damage to your car will be highly rewarded with cheaper premiums by insurers.
- Getting an approved security device installed in your vehicle to deter those would be thieves and burglars, alarm, immobiliser and trackers are good example of recommended devices which insurers are willing to reduce premiums.
www.cheapcarinsurancex.org is quote comparison website that compares over 110 companies within minutes.
It cost more to drive your car without adequate insurance protection than when you have a valid cover: Bearing the cost of not having a vehicle insurance whilst involved in a major collision can be astronomical, especially when you get sued for damages as a result of your negligence which resulted in the accident. For instance, settling third-party claims that can amount to thousands of pounds (£), your vehicle written off as a result of the collision, legal claims and other unforeseen liabilities you could incur for not having an insurance policy.
But driving with a valid insurance cover only gives you peace of mind because your insurer deals with any other issues that may arise as a result of you getting covered. Do make sure that your vehicle is adequately protected at all times before you put it on the road.