Thursday, July 12, 2012

Make The Most of your Car Insurance

A car crash on Jagtvej in Copenhagen, Denmark. (Photo credit: Wikipedia)
Scouting for the best car insurance can be tiring and time consuming. But, purchasing auto insurance is not a herculean task! All it needs is some research and a little planning on the type of coverage you will require to keep you and your family safe. However, to choose the best insurance you need to understand the types of insurance and how to make the best use of it.

Types of Car Insurance

The UK government introduced a law in 1930 which stipulated that every vehicle owner should have a third party personal injury insurance; and it is mandatory to either have security, be insured or should make a deposit of a specified amount as per Road Traffic Act (RTA) against the liability of injury caused or property damaged by the vehicle.

Just like any other insurance, car insurance has also been constructed to meet the requirements of the policy holder.

While some of the below-mentioned insurance policies can be chosen as per individual requirements, some are compulsory in accordance with the law.

RTA only Insurance: has very low coverage for the damage done to the third party.
Third Party only Insurance: this is the most commonly available; and considered a basic, legally required car insurance.
Third Party, fire and theft insurance: is the most purchased car insurance that covers all third party liabilities and, unlike the preceding insurances, it provides coverage to the vehicle if damaged.
Fully Comprehensive Insurance: It is the most expensive type of insurance and is a hybrid of all of the three above-mentioned insurances.

How to make the best use of your Car Insurance

You might have chosen car insurance that suits your requirements, however, it is most useful if you are able to utilise its full potential. And if you are a new buyer or even an experienced one, you might want to consider these criteria for your car insurance:

1. Do analysis on the organisation you are going to be associated with and make a comparison of the deals offered with others on the market. Give importance to the premium paid and the level of coverage offered.
2. Opt for the firm that has a good reputation and have already established themselves on the market; this is an easy way to judge if the company is genuine or not.
3. Do not buy add-ons that you don’t need! You need to focus on the essential parts of the car and not the luxuries. Add-ons are not reimbursed or replaced in case of accidents or theft (unless you have an additional insurance policy for it)
4. Maintain a good credit score if you want to qualify for lower interest rates. Although, Car loans UK can give you good deals on loans for your car irrespective of the credit score.
5. Do research while renewing your policy. Save time and money with accurate policy information and ask your insurance company for new deals that could benefit you.
6. Reduce Premium by driving less every year. If you prove to your insurance company that you drive less, you will get reduction on premium
7. Raise your deductible and you can get lower insurance premiums. And you can also create a separate fund in case of an emergency or accident.
8. Enrolment in defensive driving course will make you eligible for special discounts after completion by insurance companies. This is followed by most of them so make the best use of it.

Author Bio: Hi this is John. My passion is to write on Finance and Travel Blogs you can reach me @finance port.


  1. It should go without saying that you should make sure to get the most out of your coverage. This is especially true if you're prone to accidents like the one in the picture.


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