Where to buy car insurance
You can purchase a policy direct from an insurer, via an insurance broker or by visiting a price comparison website.
Taking the direct route and going straight to the insurer requires plenty of pre-planning. Make sure you know exactly what kind of policy you are looking for then "shop around" and get quotes from several before making a decision. Also make sure the firm you finally choose is regulated by the Financial Services Authority (FSA).
Visiting an
independent broker means you can pass the responsibility for scouring the market for the best deal to a professional who is aware of all the products on offer. However, it is still worth checking the broker you choose is authorised, the industry body the British Insurance Broker's Association (BIBA), or the FSA will provide you with guidance if you are unsure of a broker's credentials.
Many
price comparison websites can also arrange insurance for you. The advantage of this method is the simplicity – you log onto the website, type in a few personal details and technology will select the best deals for you to choose from and then apply for.
Many sites claim to help consumers make great savings. There is a warning, however. These sites are not authorised to give advice, therefore the deals they offer may not have been chosen as well as those selected by a broker. The lack of regulation also means some might not provide appropriate protection to consumers.
Car Insurance Jargon
Policy excess
When you make a claim on your car insurance policy, you will be required to pay an initial sum towards the costs. This can be anything from £100 upwards. So, if you have an accident and repairs cost £400, your policy excess is £150, you will pay the first £150 and the insurer will pay the remaining £250. It's worth checking the policy excess before signing up to a deal.
No Claims Bonus
Each year, provided you have not made a claim, you will receive a "no claims bonus" from your insurer. This is essentially a discount. The bonus, and therefore the discount you receive, builds up over time and so your insurance premiums reduce every year you remain claim-free. The bonuses are usually accrued over five years.
Liability
The word liability is used often in car insurance circles. This is because, as a driver, you take on liability or risk for yourself and others which is why a basic insurance policy is essential to ensure you are behaving responsibly to other drivers. It works the other way. If you car is damaged in an accident caused by another, they are liable under their insurance policy, to pay for your repairs.