Buying Car Insurance

A lot of thought should go into buying car insurance. In fact, you should give it as much importance as you do buying a car because the two go hand in hand. Your car insurance amount, policy and cost will largely be affected by the type of car you buy. Therefore, car insurance is something you need to think about long before you buy the car. If you don’t, you could very well end up with a car that is too expensive to insure.

When this happens, you will be forced to do either of two things: join the growing number of uninsured drivers or purchase insufficient insurance and become an underinsured motorist. Now, none of these two spots is a good place to be. It will land you into problems with the law; put you in problems when you get into an accident and worse, negatively affect your future efforts to obtain car insurance.

Your first key to purchasing adequate insurance is choosing the car to buy. Then get a car insurance comparison. The cost of insurance differs from one car to another. Some are expensive; others are affordable. To guide you in knowing where the model you intend to buy falls is the car insurance group. This is a rating given to every car sold in the UK, based on its value, performance and cost of repair. A low rating shows low insurance costs while a high rating signifies high insurance costs. Ratings are given from 1 to 50. Between 1 and 15 the premiums will be low but with varying difference in rates. Between 15 and 35 the rates will be higher. At 35 to 50, you will be paying the highest premiums in the market.

Cars with small engines fall in the lower categories because of their low accident risk. Powerful cars and all luxury vehicles are placed in the higher groups. This is a generalized approach. Insurers will employ other more particular actuarial considerations to determine your personal risk. A number of factors are looked at including your age, driving experience, gender, marital status, car usage, mileage, residential area and type of policy you are buying. All these contribute to the kind of quote you get. It is not surprising to find two people driving the same car model paying very different car insurance rates. It is because of the influence the above factors have.

All the above factors can help you determine the most suitable policy for you. If your car has a powerful engine for instance, it means that its collision and crashing power is high. You will be best protected if you get a comprehensive cover. If your car is old, comprehensive cover may not be really necessary and you could do with good old third party. If your car is new, consider getting collision coverage because of the high risk you run of hitting other cars. If you are not sure of what policy to pick, it helps to talk to an insurance advisor or trusted agent. They will show you which policies to choose in different scenarios giving reasons why.


The final but equally important bit is in choosing a car insurance provider. There are hundreds to choose from and if you have never bought car insurance before, the numbers can be overwhelming. If you do not know where to start, why not ask around – your friends, family, school mates will have some names of companies they found useful in the past. Carry out your own research also, checking up reviews over the internet, company performance in the market and ratings by watchdog organizations. Then compare services in different companies and choose the best.

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