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Choosing a Policy

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Ensure that you research a range of different car insurance options, since the cover provided by different insurers and different policies varies considerably. Choosing a cheaper option is not worthwhile, if in the event of an accident you find you do not have the cover you need.


Cost-Concerned or Double-Checker
Generally, there are two types of driver; those who are concerned about the cost, and those who are concerned about the cover. If you are cost-concerned you will want to drive the cost of your insurance down (see Cutting the Cost). If you are cover-concerned, you will be less concerned about the cost but prefer a comprehensive policy that provides complete protection: not only for other road users, the public, your family and friends, but also for your car.

Generally, most people fall in between these two extremes, preferring reasonable cover at an affordable price. You will need to decide how much cover you require and how much you are prepared to pay. The three main types of cover are detailed in types of Car Insurance, and are: third party, third party fire and theft and fully comprehensive. You must have at least one of these types of insurance to legally drive on the roads, and must take out insurance for each car you drive.

The type of car insurance that is best for you will also depend on your current circumstances. You should consider the following:

  • Young drivers will always pay more for their car insurance. If you are under 25 and your car is precious to you, you should consider the cost of protecting it. If you have a car worth just £600, spending £2,500 on a comprehensive policy rather than £1,600 on a third party only policy does not make sense. Even though you may wish to protect your car, there is no sense in paying more for insurance than the car itself is worth.

  • If you are an experienced driver over 25, your premium will be much lower than that of a younger driver. You may wish to use this saving to purchase a fully comprehensive policy. If you have a high-value car, would you be able to afford to purchase a replacement if it were written-off in an accident that was your fault?

If you are unsure about which type of insurance you should buy, ask for a third party only estimate as well as a fully comprehensive one, to compare the policy cover and assess the price difference.


Specialised Insurance
Consider taking advantage of insurance policies from companies who specialise in covering specific consumer groups, if you fit their target customer profile. For example, several companies now specialise in car insurance for women, offering benefits such as cover for clothes, make-up and shoes. If you are a young driver, consider finding an insurer who recognises the Pass Plus Scheme: you may earn a discount of up to thirty percent. In addition, look for an insurer who offers an accelerated no claims discount scheme, crediting with you with one year without claims after only eight months without a claim, for example. However, specialised insurance companies will not always offer you the best deal: make sure that you do your research and compare a range of policies. Policy and price comparison is the only certain way to find a good deal.