Car owners in the UK are required by the government to have car insurance or at least have third party personal injury insurance. There are different policies or coverages available for consumers and the prices are calculated based on different variables, such as the type of vehicle you own, your age, sex and your residence. To find cheap car insurance with good policy terms you will need a lot of time and effort, but with detailed research and careful planning, you will most likely end up with good auto insurance.

Normally, consumers have three choices when it comes to insuring their vehicles. The most basic and the cheapest is the Third Party Only Cover. This insurance will protect other people if you happen to crash into them. This type however doesn’t insure your car, and you will have to pay for any damages done to your vehicle during the accident. Another type of coverage will insure your car against fire and theft. This adds extra protection in case you live or work in areas where car crimes are extensive. The most expensive, but the best form of insurance is the Comprehensive coverage. So no matter who is at fault during a car accident, you are sure that all parties will be covered. However, insurance coverages will of course depend on the type of car you use. If you have an old heap, it’s better if you just opt for the Third Party only cover. But if you are driving a luxury vehicle straight from the shop, it would be best to go all the way with the insurance coverage.

Within these policies are small but important details you should know about. The Policy Excess is basically the amount that you will have to pay for when you make your first claim. Most companies will typically ask for £100 - £150 for damages, theft or fire. If you plan to pay more than the Policy excess, you’re monthly premiums will be lowered as you are taking on more risks yourself. Some third party coverages will cover widescreen damage, but for Policy excess you could pay £60. The No Claims bonus is usually simple; if you haven’t filed a claim in a long time, you will get a larger discount. However, don’t protect this bonus as many people make a mistake of doing this and usually end up with higher car insurance premium. This could be due to the fact that your insurer will add the claim to your risk before deducting your discount.

Last but not the least, don’t be comfortable driving other people’s cars just because they have Comprehensive coverage. Some insurance agencies will not cover you if you are not listed as one of the drivers of the vehicle insured. If you do get into an accident, you will be covered by the Road Traffic Act Cover. However, this is even less than the Third Party Only Cover and you could end up being liable for a huge fraction of the other party’s claim.