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Lucy F, Bradford UK
Car Insurance

Car Insurance Company

The car insurance companies are sources of protection that allow you to drive legally in the UK. Whether you are enjoying a leisurely drive through the countryside or are navigating through rush-hour traffic in London, you must have valid car insurance whenever and wherever you drive. Depending on your needs, a car insurance company can issue a basic cover for third-party liability or present extended benefits under a fully comprehensive policy. The cover is not free, however, and your payments are based on various risk factors and the importance that carrier places on each.

Because auto mobile insurers base premiums on statistical data, you have limited influence on what rates are presented to you. You do have control over the status and condition of your driving history and over your claims history, for example, but you can do nothing about your age or your gender. Because insurance companies place importance on different risk factors, you can often find premiums vary widely. Finding a company that specialises in offering plans to your major risk groups can often reveal far less expensive insurance.

Car Insurance Quote

Your first interaction with an insurance company is often requesting an insurance quote on a plan you have chosen. Comparing multiple quotes for that plan design from several providers will reveal much of the price disparity – and competition – between carriers. Avoid higher premiums on monthly car insurance than necessary by comparing quotes and not accepting the first one that comes along.

When comparing quotes or premium estimates, make sure that all your information is complete and that you compare the same data and plan cover levels. It does little good to compare third-party rates for a family van with comprehensive cover prices for a classic car. Make sure the level of cover is acceptable, and you have the same personal information and the same car or cars listed. Even differences in miles driven each week can alter your risk profile, so be uniform in all information given. Adjust plans based on that data, not the other way around.

Third-party covers cost less as a basic insurance plan than the intermediate cover, third-party fire and theft, or the full cover of comprehensive insurance. Each insurance tier offers more benefits than the prior one, and the premiums reflect that increase level of protection. Third-party insurance covers the basic level of insurance need to drive legally, and comprehensive cover provides the most extensive benefit plan.

Third-party cover allows benefits for damage for others’ property or for their injuries from an accident at which you are at fault. It provides no benefits for your own car or for your injuries. Third-party fire and theft allow the basic benefits, then adds reimbursement for repair or replacement of your vehicle from fire or theft. It also may cover replacement of damaged or stolen personal possessions that were in the car. Comprehensive provides all that and so much more, like breakdown cover, tyre cover and often hired car cover and many more benefits.

As you review your quote options and talk with the carriers directly with questions and safety options, evaluate how they treat you. Customer service counts in the insurance business: How they treat you before you buy may indicate how they treat you after an accident.

Renewing Car Insurance Policies

As one policy approaches its expiration, you don’t have to renew with that company. You might have qualified for a no claims discount, so take that into consideration as you compare quotes online again. If you complete a policy term and have submitted no claims to that carrier, expect a reduction of your estimated premiums if you renew that cover or adjust your plan.

Always contact the insurance company regarding the status of any no claims discount before the end of your policy. Get the amount of the discount for which you would qualify. Ensure you have accurate figures to use as the base point of your renewal or new-policy search. If you do continue with one company repeatedly, you might experience a total no claims discount of up to about 70 per cent during the total insurance association, so that discount should not be discarded carelessly.

Car Insurance Company Qualifications

An insurance policy at a price that seems unbelievably low and too good to be true might be just that – untrue. The company offering those unheard of prices may also not have the financial assets to guarantee full claim reimbursement. Resolve that doubt early: Ensure than any company you are considering is authorised by the Financial Services Authority (FSA). The FSA is an independent agency that reviews actions by financial service businesses, including insurance companies, to protect consumers. If you have concerns over the business practices of a company or the viability of their service claims, contact the FSA and discuss those concerns with a representative.

The Association of British Insurers or ABI uphold high professional standards when issuing insurance in the UK. Ensure the company you are considering is a member of this association as well. The car insurance company who sells you your car cover should be trustworthy, reliable, financially sound and reputable. When using the free comparison tools on this site, be assured that only those companies who meet both the FSA’s and the ABI’s standards will present car insurance quotes for your review.

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