If you are shopping around for car insurance, then it is important that you choose car insurance that best suits your needs. Opting for the cheapest car insurance every tie you look is tempting, but can also be a big mistake if you use your car more than once a week for the weekly shopping or to take the children to school. Road accidents, however minor, should be something that you feel free to go to your car insurance provider for, so today we are going to go through some important car insurance considerations to make sure that you are looking at the factors that are most important for you.
1.) What do you use your car for?
What you use your car for will have an effect on the amount that you pay, and so it is very important to be honest with your quote at this point. If you use your car for business, there will be more wear and tear over time, a greater risk of accident, and a greater potential for having to be rescued in the event of a breakdown. Therefore, if you use your car for business or on long trips: make sure the policy you choose covers you for any damages you may collect on your travels.
2.) How valuable is my car?
If your car is very old, then it may be a good idea to upgrade before you insure. Even though old cars are cheaper to buy and sell, getting their parts and fixing them can sometimes be a more difficult job than with a new car and so your premium will go up. New cars are fit with computers that can quickly diagnose problems, and in doing so, actually reduce costs for repairs, so before you commit to your car insurance, make sure you are committed to your car and upgrade if necessary! Another factor of age is the value of your car. If your car is worth around or less than £1000, any claim you make on insurance is likely to result in a write off, with a cash payment that is of the same value minus your excess: so insuring an old car can end up costing you in the long term, as if you do have an accident and you want to fix the damage (instead of replacing the car) your insurance may end up failing you as a faulty gearbox may cost more than the insurers view of the value of your car.
3.) Can I afford this excess?
Another common mistake that buyers make when shopping for car insurance is hiking up their excess to reduce their monthly payments. Before you do this, consider what would impact you the most: a sudden payment of £500 pounds for a replacement door for your car, or an increase of £3-10 a month on your car insurance? Although seeing a shrinking car insurance quote is highly motivational, it is also important to be honest about the level of ready funds you have available in the event that something does go wrong and you need to make a claim.