Car insurance explained by Gocompare.com

Car insurance is a legal requirement for all UK motorists. Failure to have a valid insurance policy is punishable by a fine or a driving ban, so going without isn’t an option.

There are several levels of cover available to UK motorists.

These are as follows:

Third party
This level of insurance will provide cover for any vehicles or parties that you damage or injure in the event of an accident. However, no cover for your own vehicle will be provided.

Third party, fire and theft
This level of insurance will provide a similar level of cover to third party insurance, with the added benefit of cover for your own vehicle if it’s damaged or stolen by thieves or involved in a fire.

Comprehensive
This is the most thorough level of insurance, and will provide cover for third parties and your own car. It is likely to be more expensive, but could provide greater peace of mind.

When buying insurance, be aware of your insurance company’s exclusions (circumstances in which you won’t be able to make a claim) so you aren’t left with an unpleasant shock should you need to call on your policy.

Car insurance companies take several factors into account when they work out your premium.

These include:

Your vehicle
Your vehicle’s value, availability of parts, performance and safety are taken into account, usually according to the group system devised by Thatcham, the British insurance organisation. Some insurers opt to use their own systems, but usually the higher the grouping, the more expensive the car will be to insure.

Your driving record
If your driving license is filled with speeding fines (or worse) then chances are your insurance will be more expensive. Keeping to the speed limit and driving with due care and attention will make for cheaper insurance in the long run.

Your claims history
Building up a driving history with no insurance claims will mean that insurers will see you to be less of a liability on the roads.

Personal circumstances
Insurers also take into account factors like where you live and your occupation. If your home is in an area with
A high incidence of crime, then the risk of your car being a subject of theft is much higher and this will be reflected in your insurance premium. Therefore, keeping your car locked away, and investing in Thatcham-approved security measures could save you money.

Modifications
Whether or not your car has been modified will have a major impact on the price of your insurance. This is due to the increased costs of replacing the parts, increased performance leading to a higher chance of being involved in a road traffic accident, and greater appeal to thieves. Sticking to factory specification is advisable, but for some owners it’s not easily workable. Therefore, carefully consider what modifications you choose to make and whether or not they’re strictly necessary.

Off-roading
If you’re planning on taking your car off road, then it’s essential that you obtain an insurance policy which allows you to do so. Green-laning, the practice of driving on the unpaved stretches of Britain’s highways should technically be covered by your insurance, but it’s advisable to check with your provider.

Shopping around
To begin your search for a cheaper car insurance quote, why not start your search online, with a comparison website? They will allow you to quickly and easily examine car insurance quotes from many different companies by just entering a few details. But always be sure to compare the benefits the policies offer you as well as the price, as the cheaper quotes won’t necessarily offer the best value.