Price, price, price!
Yes, we all know it’s down to price and nothing else, because that’s what the advertising tells us. But some day you will probably have to make a car accident claim, and that’s when you find out what your policy is really worth! So let’s have a look at some of the other things you might want to think about before making your choice.
The excess
Yes, that’s what you will have to pay as a contribution to the cost of your car accident claim. When you select the policy you may find that cheaper products carry a high excess, but then, you don’t have accidents do you? Sadly, you will have an accident at some time, and then that high excess could be a very nasty shock to the bank balance.
Extras
Some extras you really don’t want, and legal expenses insurance you should definitely avoid, even if you don’t have to pay for it. Other extras can be very valuable, for instance free “green card” insurance if you want to take the car over to Europe. Some policies offer breakdown cover, but you can often get this for free with your bank account. Check whether you aren’t already covered before you click the “yes” button.
Other drivers
You may want to include another “named driver”. (Basic cover will just insure you alone driving one car). The cost of an additional driver can vary enormously.
Service
If you think that service doesn’t matter you have never had to make a car accident claim or phone your insurer about your policy. Check out www.reviewcentre.com. More than 70% of responses rank insurers 2 out of 5 stars or less. And those 70% have far more reviews than the other 30%. The last thing you want when you make a car accident claim or need to talk about your policy is incompetent call centre staff, or even worse the phone just rings and rings.
Also, if you want to make a change to your policy, are they going to make an “administration” charge? These are all hidden costs.
SO HOW DO YOU CHOSE?
Money, money, money!
Cost is always going to be important. But if the only way you can get a reasonable premium is with a big excess, comprehensive insurance may not be right for you.. So check out the replacement value of your car. (Any of the internet car sales sites will have lots of similar cars to your own for sale). If the excess on your policy and the cost of losing your no claims bonus is coming close to the replacement value of your car, is it worth thinking about third party insurance?
Check out the extras
Make sure you are not paying extra for cover you already have. For example, do you already have breakdown insurance through your bank account?
Legal expenses insurance
Never, never, never accept legal expenses insurance, even if it’s free. You are automatically covered for the third party’s legal expenses, and if you need to make a claim against a third party, you can obtain insurance to cover your own costs, and you wont have to pay yourself. Click here for further details.
Cancellation
Policies normally run for a year, but you should be able to cancel your policy at any time. Obviously when you take out the policy you probably intend to keep it for a year, but then you might decide to sell your car and buy a new one, or even it might be written off in an accident just check if you have to pay a cancellation fee before signing on the dotted line.
Negotiation
Finally, just remember that selling motor insurance policies is a fiercely competitive business. Once you have compared all the different policies you are offered, there’s nothing to stop you going back and asking for an additional discount to seal the deal!