Selecting
the best car insurance
Selecting the best car insurance
is a more difficult task to fulfil than you might first think.
Obviously, everyones circumstances are different,
and again you should take care to make sure that you ask
the right questions to get the right cover for you.
However, as a general rule of thumb, the following
points are worth noting:
- If you are young and driving an inexpensive
first car then you will probably find the cost of comprehensive
motor insurance very high; an example would be a 17 year-old
living in a main city, buys a second-hand car for £1,000.
The cost of a comprehensive policy could be as high as £2,500
and the cost for a Third Party Fire & Theft policy could
reduce to approximately £1,700. So, the saving of
£800 on the annual motor insurance policy is a large
part of the value of the vehicle. If you hold a TPF&T
policy and have an accident, providing that the accident
was not your fault, the other driver's insurance policy
will pay for repairs or offer a replacement value of your
car if it cannot be economically repaired. However, if the
accident is your fault and your car is a "write-off"
or is badly damaged then it is up to you to pay for the
repair or replacement of the car.
- If you are young and driving a more expensive
car then it can make more sense for you to have Comprehensive
insurance. A motor insurance premium of £2,500 for
a Comprehensive policy can appear to be money well spent
if you have an accident, which is your fault, and your car
has a value of about £7,500. Your Comprehensive policy
will pay for repairs to your car or will offer you either
a cash sum or a replacement car of similar age and mileage,
as opposed to you being £7,500 out-of-pocket.
- Once you are over the age of 25 years old,
and providing that you do not have a poor driving record,
either by way of a number of accidents or motoring offences,
the cost of obtaining Comprehensive insurance can drop quite
considerably and therefore you should always look at obtaining
Comprehensive insurance. Of course, when you ask for a motor
insurance quote, you can always ask for a quote on Third
Party Fire & Theft terms and a quote on Comprehensive
terms - that way you can look at the difference in cost
of each type of cover, and make up your own mind as to which
policy best suits your particular needs..
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