Introduction
Car insurance: I’m here today to talk to you about the glamorous world of car insurance. I appreciate there are probably 100 other things you’d want to do with your time than shop for car insurance, but it’s an essential job that anyone with a car has to do.
There are three main types of cover third party, third party safety, fire and theft, and comprehensive cover. So in this video, I’m going to give you a quick rundown of what each cover includes. Some information on pay as you go and temporary car insurance, a little lesson on excess, as well as some extra cover options that might suit your driving style.
Third party car insurance
Third party cover is the minimum legal requirement for drivers in the UK. If you got to the car, you got to have it unsurprisingly, then third party is the most basic b form of COVID If you were to get into an accident, this cover will protect you against injuries to others, both in your car and other vehicles, as well as any legal claims made against you.
However, it will only protect you against damages to someone else’s car or property not your own. It’s a popular choice for first time drivers and those on a budget. But be aware that third party cover does not protect you if your car was stolen or destroyed by fire, which, frankly, would be an absolute nightmare of the day.
Third party, fire and theft
Third party fire and theft is the second tier of car insurance. It works much like third party, but you guessed it also includes cover for theft and fire damage. However, it still doesn’t cover you against damages to your own car if you were to get injured or if your car is written off entirely. So if you were to get into an accident, you could end up forking out a lot of money to cover your own costs.
Comprehensive cover
When it comes to comprehensive cover, kudos to the marketing team for thinking of a dynamic, cutting edge name for this top tier of car insurance. Not all heroes wear capes, but some should have given the naming roundtable just a couple more minutes.
To be fair, comprehensive Cover does what it says on the tin, protecting you against fire and theft, personal injuries and injuries to people in your car and other vehicles, as well as damages to both your car, other vehicles and property, plus the cost of any legal claims. With comprehensive car insurance, you can get in as many accidents as you like kidding.
PAYG vs temporary cover
As well as the big three, you might also have heard of Page You Go and Temporary Cover. And while these two sounds are saying they’re actually quite different forms of COVID page You Go is strictly usage based, so you only pay for the miles you drive.
It’s great for someone who regularly uses their car, but only for low mileage journeys like the school run or trips to the supermarket. Despite its name, with Paige Go insurance, your car is still covered even when you’re not driving it. It’s just that the cost of your premiums are calculated based on your mileage, and this can be done in one of three ways.
So the first is by tracking your miles. This involves having a small device fitted into your car, similar to a black box that tracks your distance. The second is by an hourly rate, so again using that same device to track how long you’re in the car for.
The downsides to this method, though, are that you could end up paying extra to get stuck in a traffic jam, and it also, incidentally, incentivizes you to drive faster, which isn’t ideal. The third way is by estimating your miles.
So if you regularly do the same journeys and you know the exact distances, this might work for you. Otherwise you could end up getting stung. If you overestimate your mileage, as some insurers won’t give you refunds on unused miles, temporary car insurance, then, is purely time based.
It allows you to insure a car from 1 hour to 30 days at Pop, and it usually acts as a top up to a pre existing permanent policy. So, for example, you have a car that you pay yearly premium on, but then your brother comes to stay for the week.
So you would add seven days worth of temporary cover to ensure that he’s protected during his stay. Temporary car insurance does not take usage into account, so whether your brother then uses the car once, 17 times, or not at all, you’re still going to pay the same amount.
Whether you need temporary or payergo, car insurance will largely depend on how much control you want over your premiums, how far and how often you drive, and whether you’re the sole driver of the car. To find out more about this, head to finder. comUK to visit our car insurance comparison page.
What is an excess?
There are two main costs associated with car insurance. The first is the cost of your cover. This is your insurance premium and is calculated based on your personal circumstances, the type of car you drive, as well as your driving track record. The second is your excess. Your excess is a preset amount that you have to contribute towards any claim made against your policy.
So if you just crashed your brand new Bentley and the claim is £1000 and your excess is £200, you’ll have to stump up the 200 quid before your insurer pays out the additional 800. Most insurers will have a minimum compulsory excess amount that you have to pay, and typically it will let you raise your excess so that you can lower your premiums. Just make sure you have the budget to make these out of pocket payments before you do raise your excess. Bentley thanks. Cheap honey.
Optional extras
Even with comprehensive car insurance, you can still add extra levels of COVID to your policy. So if you’re someone that’s always getting into car accidents, well, you probably shouldn’t be on the road.
But if you’re someone who thinks they could benefit from a more customized form of COVID you might want to consider adding some of these optional extras to your car insurance. Most of them are selfexplanatory, but when thinking about whether any of these are right for you.
you should consider not only what kind of a driver you are, but also where you drive and what you need your car for. For example, if your car is essential to get to work or take the kids to school, courtesy or hire car cover could be useful to make sure you’re never stuck without a set of wheels.
As a former country gal, I can vouch for windscreen cover if you’re driving down a lot of gravel track or country roads. Acorns might look all cute and rustic, but they can do some serious damage. And don’t even get me started on conquer with personal accident cover. You and your partner are covered should one of you suffer a serious injury as a result of a car accident. With this type of COVID your insurer would help to pay out with medical treatments, lost income and recovery costs protected.
No claims means you get to keep your no claims bonus, even if you have to make a claim. However, to purchase this type of COVID you’d usually need about three to four years of no claims.
What next?
Shopping for car insurance is one of those thankless tasks that all car owners have to do. There are loads of providers out there, and choosing the one that suits you will largely depend on your personal circumstances.
So for more information, money saving tips, and to compare the right provider for you, head to finder.com UK. As always, the links are in the description below. If you like this video, you can subscribe to our channel by hitting this button here or stay tuned for our next video.
Thanks for Reading.
