If you’re looking for cheap car insurance in the uk, it’s easy to assume that the highest level of cover is also going to be the most expensive, but that’s not always the case. Here, the comparison site mustard.co.uk takes a look at what comprehensive car insurance covers and how it can actually work out cheaper than other types of policy.
There are three levels of car insurance available in the UK:
By law, if you drive on public roads, you must have a third party only cover at the very least. If you don’t have car insurance, you can face a £300 fine and have six penalty points added to your license. In some instances, you could also be given an unlimited fine and even be disqualified from driving.
Each of the three levels of cover shares some similarities. For instance, a third party only will compensate other drivers and other people for damage or injuries you cause in an accident. Third-party, fire, and theft will also cover these events and will also cover your costs if your car is stolen or damaged by fire. Both policies will compensate any passengers in your car too.
As its name suggests, comprehensive insurance covers more events and is the highest level of cover available. So, as well as providing you with TPFT cover, comprehensive policies also compensate you if your car is damaged in an accident you cause.
Comp cover will also pay out if your car is damaged but you don’t know who by, for example, if someone drove away after breaking your wing mirror.
What is excess in comprehensive insurance?
Your excess is an amount of money you pay towards a claim for your own car. The amount varies according to each insurer but it’s often around the £100-£300 mark.
The easiest way to think of it is that it’s your contribution to repairs, so instead of your insurer covering the total cost, you’re splitting the bill. This is why increasing your excess lowers your overall premium.
For example, if you accidentally drove into the back of someone else’s car and caused £800 worth of damage to your own car, you might decide to make a claim. Under the terms of your policy, your excess is £200 which is the amount you pay while your insurer makes up the rest (£600).
If you do decide to increase your excess as a way of lowering your premium, always make sure it’s an amount you can afford. If you can’t afford it, you won’t be able to proceed with a claim.
Comprehensive cover has a reputation for being more expensive, and while that might have been true in the past, it’s not always the case now. This is because third-party policyholders tend to make more claims compared to those with comprehensive cover, which is now reflected in the cost of policies. That said, comprehensive policies can still be more expensive than third-party insurance for some drivers, but it will depend on your circumstances.
To make sure your premium is priced fairly, insurers consider how likely you are to make a claim. The greater the likelihood, the more you can expect to pay. Factors that insurers will consider include:
- Your age — drivers under 25 pay significantly more for car insurance as statistics show they’re more likely to be involved in an accident.
- Your address — you’ll pay more for insurance if you live somewhere with a higher than average crime rate.
- The car you drive — expensive and powerful cars attract higher premiums as they’re a target for thieves and cost more to repair or replace.
- The number of miles you cover — the more miles you drive annually, the greater the risk of being involved in an accident, which will increase what you pay.
- Activities you use your car for — you’re likely to pay more if you use your car for business as it’s presumed you’ll cover more miles.
- Where you park your car — you can lower your premium if you can keep your car in a locked garage or on a private driveway.
With so many factors affecting the cost of car insurance, it’s crucial to compare all types of policies which you can do at comparison sites like mustard.co.uk. Not only will you be able to search for quotes from a range of leading UK insurers, their Cheapest Price Guarantee* is a promise to beat any other online quote.
*T&Cs apply. See mustard.co.uk for details.