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Logbook Loans talks you through car insurance options…
Buying a car is exciting, but insuring it can be a difficult and expensive process. And with the cost of insuring your car on the rise once more – there was a 6% increase in insurance prices in the second quarter of 2016 – you really need to take time and consider your options.
Foregoing the whole process is simply not an option because if you drive without insurance you’re breaking the law and run the risk of being penalised.
If you follow the tips outlined below you will feel much more comfortable when you begin the process of applying for insurance.
Pick a cover that best suits your needs
First of all, you need to decide which type of cover you need for your car. There are three different types of cover you can choose from.
1) Third party insurance is the most basic will cost a lot less than comprehensive, but your cover is very limited. It will pay for any damage sustained by a third party if you are at fault for the accident but will not cover any damages incurred by your vehicle. If your car is valued at a significantly low cost, then this might be the cover for you.
2) Third party, fire and theft is the same as the cover just discussed but also covers your car if it has been damaged by fire or if it’s stolen.
3) Comprehensive cover is the most popular choice and if you can afford this cover it is best to choose it. With this type of cover, you get all of the above and your car and the people in it are insured against any damages and/or injuries.
After I’ve decided on the cover, what next?
So you’ve selected which cover you feel you need. Now you need to study the different insurance companies and decide which ones offer the best policies at the best prices. In this Internet age, most people actually search for quotes online. You can call and talk to personnel from each insurance company of course, but this can be very time-consuming.
At this stage, you will also become familiar with the term ‘voluntary excess’. This is a feature of all car insurance policies. If you crash, your voluntary excess will cover a certain amount until the agreed threshold is surpassed. If it is, then the insurance policy comes into play. By increasing the amount you’re willing to pay for voluntary excess, your premium will cost slightly less.
Another feature that some insurance companies include on their policy is one whereby if you have a named driver you can decrease the price of your premium. If you can put, for instance, a parent who is an experienced driver on your policy, try doing so.
So I’m good to go?
Not quite yet. Once you’ve selected the type of cover you want and you’ve shopped around for policies and companies that will offer you a competitive rate, then you need to fill out the application.
This should be straightforward, but one important thing to remember is that you must always disclose the truth, otherwise any discrepancy could be used against you and could possibly invalidate your insurance.
I haven’t crashed or made a claim, why has my premium gone up?
If you have a car which you haven’t crashed or made an insurance claim and your premium has gone up, you have every right to feel aggrieved. A change in the insurance markets can see a rise or drop in premiums across the board. This year, the cost of insurance is on the rise. Also, changes in personal circumstances can have an impact. Remember that raise you asked your boss for? Well even your job title can affect the cost of your insurance!
If you need some help with the increased costs, why not put your car to good use with an instant logbook loan? Do you even know what the value of your car is? It could be more than you think…