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The KwikGuide to: Car Insurance
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choosing car insurance and cutting the cost

how to choose car insurance

Car insurance is based on such a huge number of factors about you, your driving record, your car and your personal circumstances that this is a very hard question to answer in general terms.

But generally speaking, if you have a car worth £800 or less, then it's not worth buying Comprehensive insurance - unless you particularly want some of the extras that come with such policies.

If you have just a small accident, the cost of even minor repairs will likely add up to the value of the car. So the insurance company will just write it off.

After excesses are deducted from your car's already low market value, you'll be left with a small payout and no car. And you'll have paid extra in the first place for the Comprehensive cover.

KwikTip: always get a car insurance quote from Direct Line too,
as they don't take part in the price comparison websites.

That's why it can make more sense to only buy Third Party Fire & Theft cover on cheaper cars. You'll have to pay for repairs yourself if you have a minor accident - if you choose to repair the car at all. But at least you'll still have a car, and some saved money from paying less for your policy, in your pocket.

The real risk in this plan is if you have a serious accident and damage your car so badly that it's really not worth repairing. You'll get no money towards replacing it, so could face the loss of its whole value.

The same advice applies to drivers under 25 and those with a poor driving record, even if a more expensive car is involved. Balance how much extra you're being asked to pay for Comprehensive insurance compared to the value of your car - what you stand to lose if you have an accident.

As soon as you get over 25 or the value of your car goes over around £1500, depending on your driving record, it starts to make more sense to buy a Comprehensive policy.

This is because your age means the extra cost of Comprehensive cover isn't so much. And the value of your car means it's likely minor damage would be repaired under the insurance, or you stand to lose such a significant amount if you damage your car beyond repair that what you'd get back is worth the cost of the cover.

Always get a quote on Third Party Fire & Theft terms and also Comprehensive, so you can compare the difference in price and choose which best suits your circumstances.

Third Party insurance is really only useful for very young drivers, for whom the cost of any more cover than this is likely to far outweigh the value of the car. More cover is rarely worth paying for - often better to keep the money and pay for repairs, or a new car, if you have an accident.

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