When it comes to finding the right car insurance in the UK, comparing policies effectively can save you both time and money. One crucial factor to consider during this process is the excess amount. Here are some essential tips for comparing car insurance with excess in the UK.
1. Understand Types of Excess
Before you start comparing policies, it's important to know the types of excess. The two main types are voluntary excess and compulsory excess. The compulsory excess is the minimum amount you must pay towards a claim set by the insurer, while the voluntary excess is an additional amount you choose to pay. Increasing your voluntary excess can sometimes lower your premium but be careful not to set it too high.
2. Compare Similar Levels of Cover
When comparing car insurance policies, make sure you are comparing similar levels of cover. Policies typically range from third-party to comprehensive insurance. Third-party covers the damage to other vehicles and injuries to others while comprehensive covers your car as well. Ensure that the excess amounts are for comparable cover levels to get an accurate comparison.
3. Use Comparison Websites
Utilising car insurance comparison websites can streamline your search dramatically. These platforms allow you to enter your details and compare various insurance products side by side. Make sure to specify the excess amounts you’re comfortable with to filter results accurately.
4. Read the Fine Print
While it’s tempting to choose the cheapest policy based on premium prices, always read the fine print. Insurers may have different terms regarding the excess, and an attractive premium might hide a high excess that makes claims more expensive. Ensure that you understand how each policy defines excess amounts and under what circumstances they apply.
5. Consider Your Driving Habits
Your driving habits can heavily influence the excess amount you should opt for. If you drive frequently, a lower excess may be beneficial, considering the increased likelihood of needing to make a claim. Conversely, if you’re a careful driver with a solid no-claims history, you could afford to increase your excess to lower your premium.
6. Evaluate Your Vehicle’s Value
The value of your vehicle is another crucial factor when comparing excess amounts. If your car is relatively new or high-value, opting for a lower excess may provide peace of mind. For older cars with a lower market value, a higher excess can be a way to save on premiums without significant risk.
7. Check for Discounts
Many insurers offer discounts for various reasons, such as being a member of certain organisations or holding multiple policies with the same provider. Always check for potential discounts that may reduce your overall costs, including your excess amounts.
8. Review Your Insurance Regularly
It’s wise to review your car insurance annually, especially if there are changes in your circumstances, such as moving home, changing your job, or altering your driving habits. This review can lead to better deals and more suitable excess amounts based on your current situation.
By following these tips, you can make informed decisions when comparing car insurance with excess in the UK. Taking the time to understand the implications of excess amounts can lead to significant savings and better protection on the road.
