Contributed post
Car insurance companies offer a wide range of policies for drivers across the country. If you have recently passed your driving test and you are looking for car insurance for the first time, you may feel at somewhat of loss regarding what auto insurance actually is and what you should be looking for.
So, what does car insurance cover?
It all depends on the type of policy you have. But, generally, car insurance companies will cover damage to your vehicle, as well as any damage you may cause to other motorists and their vehicles. However, if you go for a more comprehensive policy, you can get cover for the likes of breakdown assistance, medical expenses, and personal belongings.
The three main types of auto insurance are as follows – comprehensive, third party, and finally, third party, fire, and theft. Comprehensive auto insurance offers the widest level of coverage, also covering damage to your own vehicle. Third party, fire, and theft protects you against damage you cause to others, as well as any damages that have occurred as a result of a fire or any losses due to theft. Third party is the most basic and only protects you against damage caused to others. You may be wondering why quotes for car insurance differ so much, and this is because there are a number of requirements taken into account. This includes the vehicle itself, your personal circumstances, and your record as a driver.
It’s worth doing some extra research on car insurance, for example, finding out what motor trade insurance regulations are there, as well as researching the impact different makes and models of vehicles have on insurance premiums – just so you have a better understanding.
How to lower your premiums
There are a number of approaches you can take in order to lower the price of your insurance premiums and save money. One option is to add voluntary excess to your insurance plan. This is something you need to consider carefully. While you will lower your monthly payments, the amount of money you need to pay towards any claim will increase, and so you need to be able to afford it.
It may also be a good idea to buy breakdown cover separately. If breakdown cover is included in the auto insurance plan you are considering, check the level of the cover and the price. It may be cheaper to take out a breakdown plan elsewhere.
While it is important to choose an insurance plan that offers enough cover, don’t pay for what you don’t need. Some brokers and insurers may attempt to sell you add-ons, for example, legal expenses cover. You may not need such add-ons, or you may be able to find them cheaper elsewhere.
Finally, if you can afford to, it often pays to make annual car insurance payments, as opposed to paying monthly. Some insurance firms will charge you interest if you pay by installments.