Find out if there is an excess to pay or a discount for having the first car and when it should be renewed Nationwide car insurance guide.
How much car insurance do you need?
What age is too young to get a provisional licence? Is it better to keep your car insurance on the same provider all your life? Find out more about car insurance with this Nationwide car insurance guide.
It is very important to ensure that you are getting the best car insurance deal for your needs and, even more so, the best deal for your driving record.
All of us want the best deal, and if you want to make sure you don’t get ripped off, you need to make sure you’re getting the right car insurance policy.
Car insurance is one of the most expensive bits of insurance, with many drivers using a modest car insurance policy for years without realising that they could get a cheaper car insurance deal elsewhere.
If you’re using a cheaper car insurance policy but you don’t realise it, you could be losing out, and you could also end up losing money by sticking with your provider for too long.
In fact, the data from The Association of British Insurers found that 4 million drivers are still with their old provider even though they could be better off elsewhere.
There is no point in holding on to your car insurance policy if you are getting a cheaper deal elsewhere. With car insurance prices so high and fluctuating, it is worth getting yourself a comparison site which will alert you when it’s time to renew.
Here is a step-by-step guide to understanding car insurance:
If you’re looking for car insurance for your first car, it’s important to be aware of the excess you are liable for. This will usually be part of the premium, and is typically no more than £100-£500, and can include premium finance fees.
Once you’re ready to go test drive a car and look for insurance, be sure to check what is included in your cover. With cheaper car insurance deals, you may not be paying for full cover, for example cover if there is no garage or breakdown assistance.
Similarly, if you are not using your car for the majority of the week, you may be asked to pay extra to cover additional expenses, such as extra hire costs.
How old is too young to drive?
If you’re over the age of 18, it’s not a bad idea to learn how to drive. This will give you more confidence behind the wheel and improve your driving record.
However, if you’re under the age of 18, there is a danger of you being deregistered if you get into a serious accident. This means you may be prevented from ever getting a driving licence.
When do my car insurance renew?
Your car insurance cover should be renewing every year. Check your policy for details on how to renew your policy and if there is a deadline. If you’re not sure, contact your provider and ask.
If you’re already locked into a contract, you should be able to cancel your contract without penalty within the first 12 months. If you are not sure, you can find out more from Which? Motor Insurance and independent broker Red Flag.
How do I know if I have a good car insurance deal?
After a year, check whether your provider is doing a good job of keeping you informed. Are you getting enough new products and services? Do they send out annual reminders and tell you when you can renew?
The whole insurance business is all about being profitable, so it’s important that you get the best price possible for the insurance you need. You can check your renewal policy here.
Image copyright AP Image caption Car insurance costs are rising, especially for young drivers
