A Beginner's Guide to Car Insurance
Cars,  Money Matters

A Beginner’s Guide to Car Insurance

A Beginner's Guide to Car Insurance

You’ve just passed your test, got your first car and are ready to taste freedom. But, you might want to put the breaks on for a moment, as you’ve forgotten a vital step and that’s insurance. Insurance is a legal requirement, which means that driving without it is a legal offence. When learning to drive, instructors and driving schools in Birmingham for example, have instructor’s insurance, which offers greater cover than standard insurance, making it possible for drivers without a license to get behind the wheel.

If you’re a newly-passed driver and have never bought car insurance before, then it can be a daunting and expensive process. Car insurance prices are based on numerous factors, which include, the amount of time that you’ve been driving, driving offences, the value of your vehicle and how often you use your car. To help you to understand the basics of car insurance, we will guide you through some key points, so that you know what to expect when you start your own policy.

The different types of policy

There are three different types of policy:

  • Third party
  • Third party (fire and theft)
  • Comprehensive

These policies differ in the level of cover that they provide, with third party being the minimum level of cover, and only covering you for any damage caused to a third party, including their vehicle and property. The highest level of cover available is a comprehensive policy, which covers you for all damage to a third party and your own car.

How to get a better car insurance deal

It’s pretty difficult to watch your favorite TV show and not be bombarded by adverts about comparison sites in the interludes. However, when you’re looking into starting a car insurance policy, you don’t want to forget about these handy sites.

A price comparison site will ask you a series of questions about yourself and your car, and compile a list of insurance policies based on a thorough online search to find you the best deal. Price comparison sites will save you time shopping around for deals and ensure that you’re getting the best valued deal.

For newly-passed drivers, one of the best ways to lower the price of your policy significantly is by taking out black box insurance. This means that you’ll have a device installed into your car which monitors your driving habits and lowers your premium. Depending on the type of black box insurance that you choose, these could monitor the time of day that you drive — meaning that you have to abide to a curfew — or could track how sensibly you drive, for example.

No claims bonus

This does exactly what it says on the tin. If you’ve held your insurance for a year, for example and haven’t made a claim, you’ll be rewarded, with the cost of your policy being lower in the following year. This means that the longer that you’ve held your policy and not been involved in an incident where you’ve had to claim, the cheaper your car insurance will be.

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