Car Insurance

Overall, yes. A third-party insurance policy does not cover you if your car is stolen, meaning you’d have to pay for a new car out of your own pocket. Third-party cover is the legal minimum, while a third-party, fire and theft policy provides a slightly higher level of cover as it also includes theft and damage caused to your car because of theft or fire. If you can afford to, we’d recommend choosing a fully comprehensive insurance policy, as it gives you much greater protection, covers you for injuries to other people and passengers and damage to property. Your car is also insured against fire, theft, and accidental damage.  

This type of policy allows motorists with two or more cars who live at the same address to cover their cars on the same policy rather than paying for two individual policies. This is often cheaper, too, as the policyholders receive a discount on their premium depending on how many vehicles they insure. 

This is the amount you pay if you need to make a claim. This consists of two parts: the ‘voluntary excess’ – which is the amount you choose to pay towards the claim – and the compulsory excess, which is an amount specified by your insurance company. If you want to lower the cost of your insurance premiums, then choosing a higher voluntary excess is a quick option. However, please make sure this is still affordable, otherwise you won’t be able to claim at all. 

The cost of insuring younger drivers is considerably higher because insurance companies consider them to be a greater risk. Young drivers under the age of 25 are significantly more likely to be involved in an accident than drivers over this age, which is why your car insurance premiums drop significantly once you’re older. 

If you make a claim your car insurance, then yes, the cost of renewing your insurance will go up unless some other significant factor works in your favour to bring it down. Even if you claim an accident that wasn’t your fault, your premium may still increase slightly as your insurer believes your journeys are more susceptible to accidents. 

Your car insurance will be affected if you have penalty points on your driving license. When taking out a new policy, being honest with the insurer is important. You can expect your insurance premium to increase.