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Is Cheap Always Best When it Comes to Car Insurance?

Mar 08, 2011

These days we are all looking for ways to save money every month.  Money has never been tighter for many of us and we have to cut back on our monthly expenses in order to get by.  One thing that many people are trying to cut back on is the amount that they spend on car insurance.  Looking for cheaper car insurance is something that so many people are doing lately.  This is probably because you can find many insurance companies claiming to be able to offer you a better deal on your car insurance.  Every second advert on the TV seems to be an insurance company telling you how they have the cheapest rates.  But is cheaper always the best option?

In some cases it can be great to get your car insurance at a cheaper price but if you are not getting value for your money, can you really be sure that you are getting the best deal?  The only way that a cheap car insurance quote can be considered good is if it compares favourably to a more expensive quote.  It is more important to ensure that you have sufficient cover for your car than to pay a cheaper price.  After all, what is the point in paying out anything each month if you will not be covered in the case of an accident?  It is up to you to make sure that your car insurance policy covers you for all eventualities.  If it does and the price is still reasonable, then you can be sure you are getting a good deal.

A lot of people think that the main reason for getting car insurance is because you are required to do so by law.  However there is a much more important reason for ensuring that you have sufficient cover.  At the end of the day, there is a certain element of risk involved with driving no matter who you are and that is the reason why you need to get insurance.  Hopefully you will not have to make a claim against your car insurance but if you ever do have an accident, then you can be safe in the knowledge that any damage will be paid for by the insurance company – but only if you have the proper cover.  If you do not have fully comprehensive car insurance, then you won’t be covered for any damage to your own car if the accident was your fault.  Third party cover may be cheaper but if you do have an accident that was your fault, you will have to pay for any damage to your own car and you will also have to cover any medical bills if you get injured.

Some car insurance policies are cheaper because the voluntary excess is quite high.  This means that the car insurance company does not have to pay the first X amount of the cost of any damages to the car.  So if you have a £500 excess and your car cost £499 to repair after an accident, you would have to pay the full cost.  Many people are not actually aware of what their voluntary excess is until they make a claim because they do not read the policy properly.  The only thing they care about is that the cost of their monthly car insurance payments is quite low and is saving them money.

While you may save money on your monthly payments it is not always a good idea to go for the cheapest car insurance quote that you get.  Make sure you know what you are getting for your money and that you are happy with this before you pay.