Is Cheap Car Insurance Worthwhile?
When it comes to buying cheap car insurance, the phrase 'too good to be true' may resonate among some. On the outside it may seem like you have got a great deal but read into the terms and conditions and it might not be as worthwhile as once thought.
Third Party or Comprehensive?
Many new and young drivers opt for third party insurance to lower their premiums. This may seem like a brilliant idea at the time, but in actually fact, if you were to crash, you may end up not having a car to drive at all. Third party insurance will only cover the cost of repairing the other person's car and in some cases won't even cover personal injury to yourself.
Higher Excess
Another method of getting cheap car insurance is to increase your excess. Once again, this is great in theory, but if you were to have an accident, you would have to stump up the excess before repairs could even start. Excess can range from £100 right up to £500+. It's a good idea to put a value on your car prior to insuring. If it's only worth £1,000 it's not a good idea to have an excess of £500!
Your Own Policy - Cheaper In the Long Term
If you decide to drive under your parents or partners name in order to get cheap car insurance - think again. This may seem worthwhile at first as you will be saving £100s. However, in the long run it's recommended that you take out your own policy as you will end up saving more as you build up your own no-claims discount.
Read the Small Print
Finally, when you are comparing car insurance, ensure you read the terms and conditions. Some companies will offer extremely cheap motor insurance with early no claims bonus schemes. This may sound worthwhile at first, but with some companies, the no claims is non-transferable meaning you have to stick with the same company in order to redeem the bonus.
As with all things, cheap car insurance is worthwhile so long as you fully understand the agreement between yourselves and the insurers.
Related Articles:
- Getting the Cheapest Possible Car Insurance
- Cheap Car Insurance Tips
- Getting Cheaper Car Insurance
- Price Isn't Everything!
This site is for information only and cannot offer insurance advice for your particular situation.
Consult with an FSA authorised insurance advisor if unsure on any topics related to car insurance.
