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Car Buying Guides — Car Insurance

by | Feb 3, 2021 | Insurance | 0 comments

Car Insurance


There are so many choices of car insurance available for anyone to choose from. Question is, with all these choices, would you know what’s best for you? Or would you be thinking is there still an option out there that you haven’t heard yet? In this case it is best that whether you are a seasoned driver knowing the road like the back of your hand or just starting to drive on your own or even a student, simply.co.uk can bring up to you the insurance providers for your car insurance needs.


Car Insurance Guide


One of the UK’s legal requirements for your vehicle is car insurance. All vehicles need to have car insurance on them and those that are exempted would be cars with Statutory Off-Road Notice (SORN), and these are cars that can’t be driven on public roads as by the law and will not be needing insurance. Car insurance is an additional expense but is necessary. Yes you cannot avoid getting your car insured but you can find something to find yourself a car insurance with a reasonable cost. We all need to know why the cost of car insurance is what it is. Insurance companies have factors that they consider especially when they compute your insurance premium. If we understand them, we will be able to see how we can reduce the cost of it. 


Your level of Coverage


In the UK, you can find three levels of coverage:

Third party: This type of insurance is for the protection of other drivers. Under the UK law this is a required minimum level. It is intended to cover the damage made to a third party’s vehicle. If the accident was caused by you, the insurance takes care of the damages on the other vehicle but will not take care of your damages or the replacement of your vehicle if it will lead to that.

Third party, fire & theft (TPFT): Just like third party insurance, this covers the other party’s vehicle and will include your car if it is stolen or damaged by fire.

Comprehensive cover: This is the most comprehensive insurance coverage that can be taken out in the UK. This is the policy type that includes what is covered by TPFT including cost of repair and/or replacing the vehicle of the driver who is at fault. This insurance type also pays out an accident involving an uninsured driver that isn’t covered in the lower levels of insurance.


Your Excess


There are two separate excess amounts that most policies cover. The first is the one by the insurer and makes an integral part of the policy while the second is that what the driver sets for themselves. The upfront cost of your insurance policy can be reduced by agreeing to a higher voluntary excess. This way your premium is reduced. The effect of this is that you would have to cover more costs yourself if you would be needing to make a claim. This will also include the other driver making a claim on your insurance since you were at fault.


Your Vehicle


These are the factors that your insurance provider will take into account when they would be calculating on how much your premium would be.

  • The car’s make and model
  • Security features like car alarm and engine immobilizer
  • Size of the engine
  • Insurance group
  • Car’s age
  • Mileage
  • Any modifications made to the car
  • If the car has been imported or not

In a vehicle’s insurance group you should be aware that every car has a group assignment ranging from 1 to 50. Vehicles that fall in lower groups would generally be cheaper to insure. Just some of the factors such as the car’s value and how it performs, how much and the availability of its spare parts including the average time needed for repairs is considered to categorize the vehicle under what insurance group it should be under.


Your age


Based on data gathered overtime, it’s the young drivers that are high insurance risk. This is as reported road traffic accident data and insurance claims. Younger drivers are inexperienced on the road and take dangerous risk when driving which tend to be a dangerous combination. Data also shows that accident compositions are made by 33% of 20 years old and below over those that are at the age of 40s or 50s. Younger drivers are directed to higher insurance premiums as they are way riskier on the road compared to the older drivers who are offered or get cheap insurance premiums, in particular if the older driver has substantial No Claims Discount (NCD) over the last 20 years. It becomes a different story when the driver reaches 70 as they tend to get involved into accidents thus their cheaper premiums from 10 years back would be reconsidered at around an even older age. When a driver gets to be around their 70s or 80s, their chances of getting into accidents are higher and for insurers this can be costly.


Your Occupation


Your occupation has a factor on what your insurance premiums is as your car is used for work daily gaining more mileage. What this means is that the more time you are on the road travelling the higher the risk of getting into accidents. If you happen to not frequently be on the road for your work it can still tug on the cost of your insurance as insurance providers can use it as a proxy for your risk appetite. Those with higher risk appetites like race car drivers, those who do stunt driving and the likes may translate to speeding violations or possible risk in driving.


Your Location


If you happen to be living in a large urban area and there’s determined data on crime rates there. This can tell whether your insurance premium would be cheap or not. This is a factor considered too by insurance providers. Other than crime, it is also being looked at if you are in a heavily trafficked part of town or living in the countryside. If the chances of you getting into vehicular accidents are pretty high, it’ll be more costly to get your vehicle insured as you live in a heavily crowded area. Do you have a garage? Or do you park in a driveway? You wouldn’t believe it but this matters too. If the vehicle you’re getting insured is less likely to be vandalized, stolen or be getting in an accident then your insurance premium is good but if on the contrary, all of the above can happen this may get cheaper insurance 


Your Driving History


The factor of your driving history would be:

1. How long have you had that license

2. Have you had any point or hits or driving convictions placed on your license.

You will get a much more expensive policy if it happens that you hold a provisional license but it’s possible for the cost to be reduced when you choose to get temporary learner insurance rather than an annual policy.  There are a lot of learner drivers who pass the test in less than a year, then this insurance is a good option. Car insurance for those who just started getting on the road would be more expensive for a certain period of time. Eventually as you get to be more seasoned through the years, it becomes more cost effective as long as you keep your license and yourself from getting any driving convictions or points on it. Your car insurance cost will be more expensive if it’s recorded in your license that you ran a red light, got a penalty point for speeding or any driving offense you may get yourself into. Unless those points and convictions are removed, do not expect for the cost of your car insurance to go cheaper. 


Your Claims History


Would you like to get perks from your car insurance? You can earn No Claims Discount or otherwise known as a No Claims Bonus. This can be earned for every year you’re on your insurance that you do not do a sizable insurance claim. As a matter of fact, older drivers build up their No Claims Discount of up to 20 or 30 years, and if that is totaled could be equivalent to 60% to 70% discount on their car insurance premiums. Who would not want to enjoy that?

Factors that affect your car insurance premium:


Your Medical History

It is very important that you declare any and all medical conditions that may affect your driving as this will be for your safety first and foremost. This should be disclosed to the DVLA and your insurer. Although there are so many conditions that can affect your ability to drive, you may be diagnosed for some of them over time and this is due to old age. This was, another factor in relation to your insurance would be your medical history. It is important to declare any conditions that you are diagnosed with as above anything else, safety is priority especially when you are on the road.


Your Optional Extras

There are optional extras that you can choose to add to your policy as most insurance providers offer this. You can choose from breakdown cover, windscreen cover or even legal expenses cover. These extras may be convenient and cheaper over taking our separate cover, there is an equivalent increase to the insurance premium for a little amount. Car warranty can be taken out but there are time when this can just be taken out with your current insurance provider and at times can be a standalone policy instead of a car insurance add-on


Insurance FAQ: Your car insurance questions answered.


Other than age being an important factor when getting car insurance yet other than that, will these providers look into gender as a factor as well? Women drivers are in very low chances of getting involved with the following:

Car accidents

Drunk driving

Driving convictions

Penalty points

Road Safety GB’s data has presented that around 72% of men are the one getting all penalty points and for drunk-driving convictions, data shows about 69%. This data led to women getting cheaper car insurance and there are even specialist brands that created programs for female drivers with really affordable insurance. But that all changed when back in 2012, the EU’s new gender directive ordered out making it officially illegal that gender be one of the factors to calculate premiums. There are still female-centric insurance brands in operation but they service both female and male drivers and it is no longer a factor whatever is the gender of the policy holder. Regardless of gender, if you require a policy, they calculate your insurance quotes. 


Am I allowed to drive somebody’s car because of my car insurance policy?


Unless you have third party or you get third party fire and theft insurance, your existing policy will allow you to drive only your own car. For those insurers who have fully comprehensive car insurance policies, if you got that on your policy and a third part cover on top of it then you can drive someone else’s car. You can pay extra to get an ‘any car’ inclusion on a policy, you can get details of such with your insurer.


What is an insurance excess?


What an ‘excess’ means on an insurance policy is that first part of the costs that a policyholder pays if ever there is a need to claim their insurance. To explain the meaning of insurance excess, here’s a situation. A motorist has a car insurance policy that has a total excess of £500 and the motorist filed a claim for damage to the vehicle amounting to £2,000 then the motorist will need to cover the first £500 themselves, with the insurance company to cover the remaining £1,500.


What is a voluntary excess?


There are two separate excess amounts that most policies have:

A ‘compulsory excess’, this is identified by the insurance provider, this cannot be removed or modified.

B ‘voluntary excess’, this is set by the policyholder and mostly can be adjusted upwards to reduce the annual premium. 

You can request for a voluntary excess of zero, but in the case of an accident, the compulsory excess still applies.


What is Dash Cam Insurance?


Most vehicles have dash cam installed on them and when insurance providers see this they are willing to offer a discount on the motorist’s policy. With the help of dashcams the providers can provide very good evidence on how the accident happened. The video footage that is produced by the dashcam may help prove if the policy order was at fault of the accident or not. Aside from that this will also aid in checking against “crash for cash” or getting into accidents in order to get insurance claims.


How can I get very cheap car insurance?


There are ways to get cheap car insurance. If you try to google it. A lot of car insurance policy names will come up but there are things that can be done to increase your chances of getting a cheaper quote. This is where simply.co.uk can help you with the choices of car insurance policy. Simply.co.uk can provide you with an unbiased comparison of existing providers in just a click. That is definitely a big help, no need to physically visit different stores just to gather how much their policy costs.

To add to that, there are factors too that can help get you a cheaper premium rates, here is a list below:

  • Low Insurance Groups vehicles for sale: If you haven’t had your car yet, you can choose to opt for those that are available within Low Insurance Groups this way your premium gets reduced but this is only possible if you are to buy your car.
  • Garage Parking or Driveway Parking: Vehicles parked on roadsides are more costly to insure. These vehicles can get involved in accidents by being side swept or targeted by thieves.
  • Installation of Additional Security Features: If you got a car that does not have security features such as an alarm, GPS tracker or engine immobilizer, it would help lessen the cost of your premium.
  • Opting for a Higher Excess: This helps reduce the upfront cost of your insurance premium but you have to think it over if going for this cheap premium is worth shelling out huge sums of money once you get involved in an accident.
  • Paying annually instead of monthly: You’ll get a little discount if you choose to pay annually instead of monthly so if you go for this road you can help reduce your premium using this factor.


Why is comprehensive insurance cheaper?


You as a driver gets more protection with comprehensive insurance over lower levels of coverage. In this way the insurer covers more types of accidents that they include to pay out. There are comprehensive insurance policies where this gets reflected in higher premiums depending on the case. There could be those riskier drivers who look for less comprehensive cover with the thought that they could save with their payments. This has already been noted by insurers. This could mean that insurance claims for third party or TPFT policies have increased risk despite the fact that there are only a few types of incidents covered on those policies. This is where it is best to compare quotes for fully comprehensive insurance packages as it can either be potentially more expensive, same price or less expensive as lower levels of cover. This is if you plan to take out less coverage.


How can I get free car insurance?


There is a possibility of getting free car insurance depending on what you are willing to get it for. You can go to a car dealer and can be set up for a 12 month insurance plan for free as an incentive if you purchase a brand new car. There are also some companies that put you up for free insurance if you make a larger purchase. There are a lot of deciding factors in getting your car insurance and you may even look at getting a brand new car for a free car insurance but sometimes this is not a good case. It’s not a good idea to get a vehicle that you wouldn’t really need just to get hooked up on the free insurance when you already have a car and all you need to do is get it insured. You’ll never know, it could be that the cost is already incorporated on the car price thus the reason why It’s free.