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How to Choose the Right Car Insurance

4 minute read

By natadm

In order to protect your investment and yourself on the road, you need car insurance. While you might not use its coverage often, it can be invaluable in the event of an accident. However, it can be hard to reconcile the high price that comes with car insurance when you’re on a budget.

Every car insurance policy is different, which means every policy carries different costs. So, if you’re looking for affordable car insurance, you may need to find a new policy with a new insurer.


In order to find a car insurance policy that’s within your budget and offers the right amount of coverage, you’ll need to consider and compare different policies. To make your search for the right car insurance easier, you can follow these steps.

Consider Different Types of Car Insurance

Your first step in choosing a car insurance policy should be to consider and compare different types of car insurance. Every car insurance policy is different, and that starts with the type of insurance you’re actually carrying.

There are three types of car insurance you can choose from.

1. Third-Party Insurance

Legally, UK drivers are required to carry third party coverage at a minimum. Unfortunately, third party insurance offers the least amount of coverage, which may not be ideal for all drivers.

Third-party car insurance covers only the basics, which means you’ll be responsible for paying for any damage caused to others’ property. You’re also responsible for compensation and costs related to any injuries that occur during an accident you’re at fault for.

Because this type of car insurance offers limited coverage, it’s often the cheapest option.

2. Third-Party Fire and Theft Insurance

Third-party fire and theft car insurance offers an additional layer of protection to third-party policies. On top of offering the same coverage as a third-party policy, it protects you against loss or damage to your car that’s caused by fire or theft.

While fire and theft insurance comes with an increased cost, it can provide peace of mind for those that worry about unexpected disasters or accidents.

3. Fully Comprehensive Insurance

If you want total, complete coverage for your vehicle, a fully comprehensive car insurance policy can offer exactly that.

Fully comprehensive insurance is the highest level of coverage. As such, it includes protection for:

Because the level of coverage is meant to be all-inclusive, these policies are typically the most expensive.

Additional Coverage

If you’d like, some insurance companies give drivers the option of adding an extra cover, known as additional cover. This means you can choose to purchase optional coverage for scenarios like breakdowns, legal issues, and courtesy cars.

It’s something to consider, especially if you’re looking for affordable car insurance that includes all the coverage you want for your vehicle.1

Look for Certain Qualities and Options in a Car Insurance Policy

Once you’ve decided what level of coverage or type of policy you need, it’s important to consider and compare what insurers offer. Every insurance company offers different benefits and options, with some being more important than others.

The following qualities are perks that can affect how much your policy costs and your overall policy. So, you’ll likely want to have them included.

A Policy That Reflects Your Driving Habits

While those with less-than-perfect driving records might not want an insurance company looking into their behavior on the road, good drivers do. If you’re a safe driver, have few or no accidents, or don’t use your vehicle very often, you don’t want to pay the same as everyone else.

That’s why it’s a good idea to make sure a car insurance policy accurately reflects your driving habits. You can often get lower prices for driving less, having a good driving record, or even where you park your car.

The Option to Pay Your Premiums Upfront

You should assess whether or not your insurer will let you pay your premiums upfront. Paying for your policy all at once tends to be cheaper. When you spread out your payments on a monthly or biannual basis, you often have to pay interest.

Paying upfront will save you as much as 16 percent for a one-year policy.

The Ability to Use Black Box Tech

Increasingly more car insurance companies are tracking drivers’ habits with black box technology.

Black box tech, or telematics, can help tailor your insurance costs based on your driving habits – and that could save you money. It’s a more accurate way of assessing how many miles you drive each week or month if you speed or break laws often and if you exhibit good behavior on the road.

If you don’t drive frequently, put fewer miles on your car, and follow the laws, you may be able to get a discount.2

Search for Car Insurance Online

Lastly, you’ll want to search for your car insurance policy online. When you shop online, you’re not just able to compare prices and coverage options. You’re also more likely to get a great deal and pay less for your insurance.

The more research you do when shopping for car insurance online, the more likely you are to save money. You can get quotes and estimates from multiple insurers, so you can assess whether or not the coverage they offer is worth the price. It’s also possible to use the quotes you receive to negotiate. You can show insurance companies any lower prices you’ve been quoted as a way of asking them to match that rate.

Additionally, you can use comparison tools online to get immediate quotes and easily compare multiple policies at once. Just make sure you look into the details of each and every policy to ensure you’re comparing equal levels of coverage and getting the best value for your money.3