Comprehensive Buying Guide to Car Insurance

How to choose car insurance? Having a valid car insurance is a legal requirement when driving a car anywhere in the UK. Once you get the car the great search begins. Quotes vary between different providers and also all your circumstances will impact the final asking price.

The first thing that you need to do is decide which type of car insurance you want to buy. Choose from:
Comprehensive car insurance - As it sounds - it means full insurance cover in case of accidents - for yourself and third parties involved. It covers all medical expenses and recovery costs. Of course, it comes with a certain limit.
Third Party, Fire & Theft - this type of insurance covers your losses when your car is stolen or burnt. It also cover third parties invloved in accidents with you.
Third Party Only - It only covers the costs of the damage you cause to someone else in case of an accident. This is the minimum level of any insurance policy.
These are the three main types you can choose from. All these can be extended with breakdown cover option. If you want to be able to use you insurance policy when driving in Europe - this is also offered most of the companies.

What affects your premium?

* No claims bonus(NCB) - this a discount offered by all companies. It means that if you have a certain amount of years during which you haven't made claims - you will be able to benefit from the lower premiums. You can protect your NCB for a certain amount and you will not lose your NCB if you claim not more than two times in 3 years time.
Excess - this is the amount you'll have to pay out of your pocket towards costs that have incurred in an accident that you have caused.
Driver's age and experience - young drivers usually have higher priced premiums because they are more likely to claim.
Where the car is kept overnight - if you have a locked garage - this will lower your premium but if you keep your car on the street * you will not benefit from any discounts.
Year and mileage of the car - the older cars are cheaper to insure. But cars that have lots of miles per year are with higher premiums as they are considered more risky for incidents.
Area - one of the most important factors for insurers is where you live and keep your car. They have a map with crime rates and depending on the area you are living, they calculate your premium. Obviously, in a neighbourhood with higher crime rates, you will pay more.
Car - sports cars are usually more expensive to insure while family ones come out cheaper.
Another tip to save money on your car insurance is to pay the total amount upfront. When you spread the cost to monthly payments it is a kind of a loan from the insurer so there will be an increase in the total price you pay. And if you consider cancelling your policy the longer the time left is the more you will pay as a cancelation fee.

How to find the best rates?

The best way to find a quote to match your budget is to fill in a form in one of the comparison sites such as GoCompare, Confused or go to well renowned car insurance providers as Aviva(you won't find them on any comparison sites) or DirectLine.
Take your time to compare the different insurance policies, doublecheck what's included - legal costs, breakdown cover, windscreen protection, etc.