The Various Types of Car Insurance

All vehicles being driven on the roads of the UK must have appropriate insurance. Thankfully, there are various types of car insurance available to meet the needs of all cars and all drivers. By law, the minimum car coverage required is one called third-party coverage; however, there are other types of car insurance you can choose from.


Third-party insurance is the cheapest car insurance available and covers all parties in an accident involving the insured automobile except for the person holding the insurance policy. Damage to property and other vehicles besides the insured person’s vehicle are covered as well.

Fire and Theft

Another type of car insurance that is fairly cheap, but includes more coverage than the standard third-party policy, is fire and theft. Fire and theft work in the same manner as as the standard third-party insurance except that fire and theft covers stolen vehicles or those damaged by fires. Replacement and repair costs are included in this type of policy.

Types of Car Insurance

Fully Comprehensive

Fully comprehensive is a type of insurance for cars that provides the most coverage for drivers and their automobiles. This policy is a combination of the coverage of fire and theft, third-party, and other coverage scenarios. Under most circumstances, fully comprehensive policies insured accidental damaged to the vehicle despite who the at-fault driver is. There are also many other coverage points included in fully comprehensive insurance that are different depending upon the individual company and the plan.

However, because there are a lot of coverage options when you purchase a comprehensive car insurance plan, it can be expensive to pay for. Owners of new automobiles tend to lean towards comprehensive insurance because new cars carry a lot of value, which justifies the high premium rates that come along with it.

Comprehensive Auto Insurance: A Primer

Car insurance is extremely important. Not only is it required by law, but it also protects you when you are driving a vehicle from potentially losing your license or going bankrupt. When it comes to shopping for car insurance, it can be frustrating trying to understand all of the different terms and conditions of each policy. One type of coverage that you will come across is comprehensive auto insurance.

What is Comprehensive Auto Insurance?

Comprehensive car insurance will cover your vehicle from any unexpected unfortunate events that may bestow your vehicle. This is not to be confused with collision coverage that covers your vehicle when it is damaged in an automobile accident. Instead, comprehensive coverage will pay for damages from things such as hail, tree limbs, fires, flood, and wind damage. Generally, this type of insurance will be combined with a collision plan, but comprehensive auto insurance may be purchased on its own as well.

Comprehensive Auto Insurance

How Comprehensive Coverage Works

If your vehicle incurs any type of damage that is covered by the plan, your insurer will asses the damage and determines the amount that they will pay for either repairing or replacing your vehicle. For example, if a tree limb falls on your car and the windshield is shattered, the insurance agent will determine the cost of replacement. If the replacement value is $2500 and you have a $500 deductible, the insurance company will write you a check for $2000 to use to replace your windshield.

Pros of Comprehensive Coverage

The benefit of having comprehensive coverage is that any damage that is done to your car will be paid for minus your deductible. This includes if your car is stolen. It is nice to have the peace of mind in knowing that you will only have to pay your deductible amount if anything happens to your car. Comprehensive coverage is not required by law, but is very beneficial if you live in a place where theft or natural disasters occur often.

Cons of Comprehensive Coverage

Comprehensive coverage sounds wonderful, but there are a few cons of this type of insurance as well. First, there are damages that your policy will not cover. It is important to read your policy carefully to make sure you understand what is and is not covered. Many people think that comprehensive coverage will cover any damage that is done to their car, including accidents with other cars. This is not the case, there are several restrictions set by insurance companies regarding comprehensive auto insurance plans.

Coverage Limits and Deductibles

When looking for comprehensive coverage, there are two terms that you need to know. Coverage limits refer to the maximum amount the insurance company will pay for any of the damages that occur to your car. Consider setting your maximum coverage limits at the amount your car is worth to make sure that if your car is totaled it will be paid for.

7 Tips To Find Cheap Insurance For Your Vehicle

It is a known fact that the vehicle insurance rates have skyrocketed in the recent years. At such, one needs to take all the necessary precautions to keep the insurance premiums in check. In this post, I will provide 7 tips to find cheap insurance for your vehicle.

Choose the right vehicle

The most important thing to consider is the selection of vehicle. Be realistic while selecting your vehicle in terms of price. Again, the insurance quote of your vehicle also depends on a number of other factors. For instance, if you get modifications done in your vehicle, the price of the insurance will increase.

Use Comparison websites

Since there are a number of insurance providers, it is a wise idea to make use of comparison websites to compare the quotes. There are a number of websites that provide updated information about the prices charged by different insurance companies. You can even make use of this data to negotiate the renewal charges with your current insurance provider. For instance, if you find out that any particular company charges less renewal for your vehicle, you can convey this to your current provider for a better offer.

vehicle insurance rates

Pay Upfront

One of the easiest methods to save money on the vehicle insurance is to make upfront payment. Most of the insurance companies provide an option to pay monthly installments as insurance premiums. Though this option might seem convenient to many, it finally ends up consuming more money out of your pocket. Thus, it is quite better to pay upfront as it allows you to save a lot of money.

Have a clean License

Having a clean motor license will also help you to avail less insurance charges. On the other hand, if you commit motor offences frequently, you will have to pay higher charges. Thus, you should always drive carefully and avoid any motor offence like speeding up. Another important thing to remember here is that in case an accident occurs; you must convey this to your insurance provider. Hiding this information can lead to termination of insurance.

Buy the vehicle insurance online

Buying the insurance online is not only convenient and time saving but it also saves you a lot of money. The insurance companies provide cheaper insurance for vehicles when purchased online. This is because it is convenient for the provider also. You can get an idea about the difference in offline and online rates with the help of price comparison websites.

Make use of no claim bonus

If you have insurance for your vehicle and you do not file a claim, you are provided a no-claim bonus. Once you have gathered the no-claim bonus for few years (4-5), you are offered exclusive discounts by your insurance company.

Make use of Group Policies

Most of the insurance providers provide exclusive discounts for people taking group policies.  Thus it is advised to take the policies for all your family members from the same insurance provider.

Why Your Car Cover Premiums Have Gone Sky High

If you’re looking for reasons why your car insurance premiums have gone up in the last few months, you might want to go back to the EU gender ruling. Unfortunately, this was something that wasn’t as reported in the press as you might imagine. The truth is that a lot of insurers used to give “breaks” on premiums based on the gender of the driver. The new EU ruling that came effective 21 December 2012 indicates that insurers cannot take gender into account when calculating premiums. This is actually illegal at this point. Car insurance and motor insurance as a whole will be affected the most, but other forms of insurance will be affected as well.

What this really means is that young men might see a decline in premiums, but women will usually see an increase in premiums. That’s something that can be pretty hard to deal with, especially when money is already tight for all of us.

Car Cover Premiums

Thankfully, women in the UK can fight back by looking into telematics-based car cover, which takes into account their actual driving behavior. You don’t have to take these increases lying down. Even though telematics sounds new, it really isn’t. What you’ll be getting is a little “box” that is installed into your vehicle. It even helps you if you have an accident, because help can be sent directly to your location. If your vehicle is ever stolen, the telematics unit can be used to discover the location. This is also something that criminals can’t just easily remove, which means that even if they were to search your vehicle top and bottom for the tracking device, they’re not going to be able to find it. Trust us, this is very good news no matter which way you slice it.

You should still be shopping around for quotes. This isn’t the time to get discouraged and think that all hope is lost. This is something that you’re going to need no matter what, so you might as well figure out the best policy for you.

The usual advice about coverage applies — going for the cheapest coverage possible may leave you exposed in some pretty nasty ways, so you want to still read over your policy before you really commit. This will allow you to look at what exclusions the insurance company has, if any apply. Good luck!

Short Term Car Insurance

A short term car insurance policy is for you if you need car cover for a short period of time. Common situations include test driving or taking delivery of a new car, insuring friends and family so they can legally drive your car, and likewise, for you to drive someone else’ car. A short term car insurance policy will cover you for a period between 1 and 28 days.

Short Term Insurance Cover

How to get short term insurance:

1. Go to the websites of temporary or short term car insurance providers.
2. See if they offer quotes through online forms.
3. Complete and submit online quotes.
4. Copy your details to Notepad or Textedit for future online quote submissions
5. Rinse and repeat for other short term insurance providers. Apply for as many quotes as possible to ensure that you get the best rates.

The specific features of short term insurance policies are outlined below.

Car Accidents and Lost, Stolen or Damages Due To Fire/Theft/Vandalism

Your short term insurance policy will cover you if your car is stolen or damaged. This includes paying for the car repairs, replacing the car or reimbursing a sum equalivalent to the loss or damages. Note that these payments will be made to the legal owner of the vehicle. Most policies will cover up to a maximum of £40,000.

Replacing A New Car Under Short Term Car Insurance

Short term car insurance policies will pay out under new car replacement coverage if the cost of repairing or replacing your car exceeds 60% of the list price, inclusive of tax and VAT. This coverage is only applicable if the car is legally owned or under a hire-purchase agreement. Leases and other contract-hire agreements do not qualify.

Accident Recovery

Should you find yourself in a car accident involving your short term insured car, your insurer should cover the costs of the repairs and delivery of your car upon completion. Note that the insurer will likely require the repairs be carried out by a repair facility specifically approved by the insurer. An additional benefit of working with an insurer-approved facility is that the work will be guaranteed for typically three years.

Cover For Miscellaneous Legal Liabilities

Most providers of short term car insurance will cover legal liabilities up to £5,000,000. Example scenarios include death, injuries or property damage caused by an accident involving your insured car.

Get started today by getting a quote for short term car insurance from a reputable insurance companies or learn more about short term insurance.

Temporary Car Insurance – Top 3 Reasons

Temporary car insurance is insurance cover for periods of 1-28 days. In addition to protecting cars, you can purchase temporary motor insurance for vans and motorbikes as well. Temporary insurance can be bought over the Internet, without needing an insurance broker.

Here are the top 3 reasons to consider temporary car insurance.

1. Lending Or Borrowing A Car

Do not risk your annual insurance policy when lending your car out to friends. Should anything unfortunate like an accident happen, your insurance policy will likely be involved. This is especially true if your friend does not have insurance cover themselves.

Likewise, get temporary car cover if you will be borrowing someone else’s car for an extended duration. It’s the responsible thing to do!

Temporary Car Insurance2. Your Car Is In The Shop

Unfortunately, the courtesy car provided to you while your car is in for repairs does not come with free insurance. Purchase short term car insurance separately to save on the rates. You’ll likely get better coverage as well.

3. You Bought A Car But Still Shopping For Annual Cover

Strangely, many new car owners put off shopping for an annual insurance policy until the papers have been signed and they’re about to drive their new car home! Pick up temporary car insurance to buy you some time. And don’t skimp on the comprehensive coverage protecting against loss or damage from fire, theft and vandalism.

Temporary car insurance goes by different terms including short term car insurance and one day car insurance. Remember to get as many quotes as you can before making a decision. You could wind up saving a bundle!

One Day Car Insurance for Under 21

Although there are many insurance providers in the UK that offer short term car insurance, drivers looking specifically for one day car insurance for under 21 year olds have very limited options.

Unfortunately, most drivers under the age of 21 do not qualify for car insurance underwriting. Car insurance companies consider many different risk factors before approving a policy and in the case of under 21 year old drivers, one day car insurance is currently not a feasible product in the marketplace.

One Day Car Insurance for Under 21This is could change however as insurance laws and underwriting rules frequently change. It is very possible that as one day car insurance for 21 year olds has since become available after time of writing. Our best advice is to continue your search and apply for online quotes with as many insurers as possible. This ensures that your chances of finding car cover.

If you do happen to find an insurer that offers short term car insurance to young drivers, we’d be happy to hear from you and we’ll update this page to help other under 21 year old drivers in the UK.

In Need of One Day Car Insurance?

What is one day car insurance, and who is it for?

A common scenario in the UK that calls for temporary insurance is when shopping for a new car. For instance, you’re going to be test driving a car but aren’t sure if you want to purchase it yet. For the day that you are test driving the car, you would want it insured, but you certainly don’t want to have to go through the process of getting more permanent car insurance for that coverage.

How do you find the absolute cheapest one day car insurance?

It’s simple really. Get as many quotes as possible. How? Fill out and submit as many online insurance quotes forms as you can get your cursor on. You should get quotes back instantly or within a day. Best rate wins.

You’ll also want to ensure that you’re comparing apples to apples: ensure that the policies from different insurers and providers offer the same coverage and deductibles. The slightly more expensive short term insurance policy might be the way to go if it has less restrictions and greater coverage.

short term car insurance

What are some other circumstances under which one day car insurance is the perfect solution for your coverage needs?

Well, imagine if you are borrowing a friend’s car for one day while yours is in the shop, or if you don’t have a car but have your driver license and need to do some chores or errands that require the use of a car, such as moving into a new home. Perhaps you are going to be driving a car that is being imported to you from outside the UK and you need to have it insured very quickly before the process of more permanent car insurance gets completed. Perhaps you have just bought a new car but your permanent car insurance won’t kick in in time for you to drive it off the lot that same day. You might even be preparing for a car race and you need to insure your racing vehicle just for the day of the race. Short term car insurance policies are great options for these scenarios.

One day car insurance will be underwritten on you in merely a matter of minutes once you have been approved. The application process moves very quickly. Once you have your coverage approval, can simply have the coverage certificate e-mailed to you for you to print out. UK car insurance providers who specialise in providing short term car insurance know that they must get you covered within an hour or less from the time you submit your application. They will simply tell you what the one-day premium charge will be, charge your debit or credit card, and issue the insurance. They won’t be getting back to you with various options or quotes. They have the necessary infrastructure all set up to provide you with this special car insurance coverage.

In addition to one day car insurance, you can also get other types of specialised short term car insurance coverage. There are rolling, pay as you go car insurance policies that can remain in force anywhere from a weekend to 32 weeks. These types of policies can be a blessing to you if you want to protect your main policy’s No-Claims Discount or maintain your main policy’s low premiums while you temporarily cover other drivers on a short term basis, such as if you have young adult children who will be regularly borrowing your car while they save up the pounds to buy their own. Also, if you’re going to be doing moving using a truck or a moving van rather than your sedan or sports car, you’ll want temporary coverage on that vehicle but, once again, you may not desire to risk your No-Claims Discount or your current level of premiums on your main car insurance policy.

Typically it’s more economical to purchase one day or other temporary car insurance with a specialist insurance provider than it is to attempt to arrange this insurance with your current provider, and of course we have just mentioned the added benefit of protecting your No-Claims Discount Bonus and existing premium. Just make sure that when applying online you scrutinize the details and small print of any policy that you are pondering before you buy. Don’t hesitate to ask for professional advice if you need it to learn more about one day car insurance policies.

Car Insurance for modified vehicles

What is a Modified Vehicle?

So you have got a transmission / engine overhaul, fitted a new exhaust system, air filter, fitted new body kits and got a paint job done on your car? In short, you have modified the car making it look classier than before…

Does a standard car insurance policy cover your modified vehicle?

A standard car insurance policy is not going to treat your modified vehicle as being worth anymore than a standard car. It is imperative that you tell your insurer if your car has been modified, if you do not, then your insurance may become invalid…

Is getting car insurance for modified vehicles difficult?

Car Insurance for modified vehicle is difficult to source or arrange as standard car insurance, as it depends on the nature of modifications done to the car… However, there are many car insurance companies in UK offering modified car insurance policies.

modified vehiclesFactors defining car insurance for modified vehicles

Car Insurance for modified vehicles depends on various factors such as your previous car insurance cover, car insurance group, the type of car insurance cover you require, age, your residential area and the kind of modification or alterations done to your car… The process is quite complicated though the basics are easy to understand.

Determing the base rate & loadings

The insurance company will determine the base rate and loadings reckoning on the modifications done and the type of car owned… for e.g. cheaper car will attract less loading value, unlike costlier car… Once the loading is calculated, it is converted into pounds… The premium amount will depend upon the loading. Sometimes certain modifications will incur an increased excess in event of claim, leading to additions in the premium amount. The degree of classification of car modifications, their associated rating implications varies from company to company.

Hunt till you are happy

Take quotes from different companies; they have different methods of calculating the loading figures. Inquire with friends, family who are availing modified car insurance policy, as you might get the best deal.

What is Car Insurance Broker?

A Car Insurance Broker responsibility is to seek his customer’s requirements, evaluate them, and match them to the most reasonable and suitable insurance cover. A Car Insurance Broker can be an independent individual or tied to an individual insurance company or car insurance provider. However, majority of brokers will be an independent broker, as they will simply be acting on behalf of the customers and only in their best interests. Some brokers are multi-tied, as they can introduce products to you from range of insurance providers.

Car Insurance Broker & Insurance Company

The difference between a car insurance broker and an insurance company is that the car insurance broker will have as many best car insurance products to offer for each of their customers, whilst an insurance company has only their own range of products to offer. Through a car insurance broker, you can choose cheapest and best insurance products.

Car Insurance Broker
Some people have wrong perception in mind that car insurance brokers sell car insurance to you themselves, instead they identify the car insurance that matches the needs of customer, is reasonably priced and then they buy the insurance on the customer’s behalf.

Good Car Insurance Broker

A car insurance broker has to be regulated by statute and registered, by way of which they are entitled to use the designation of “Broker”, else they are a “consultant” if not registered and regulated by statute.

A good independent car insurance broker will know all about the different products on the market and find the right one for you at the right price.