Every car owner is required to buy UK auto insurance with a minimum third party cover. However, an individual can always buy wider coverage offered by the UK auto insurance companies.
What Does UK Auto Insurance Cover?
Broadly, there are three types of insurance policies based on the extent of coverage:
Third party: This pays for damage if the insured driver injures another person or damages their property in a motoring accident. However, this policy does not cover injury to the policyholder or damage to the insured vehicle. The limited scope of the third party insurance results in lower premiums.
Third party, fire and theft: Some UK auto insurance companies offer this type of cover as the minimum cover. It covers damage to the insured vehicle in case of fire or theft, along with the benefits of third party insurance.
Comprehensive policy: This covers third party damage, damage to the insured vehicle in the event of fire or theft and bodily injury to the policyholder in case of an accident. A comprehensive policy is the most expensive option but provides complete auto insurance solutions. An individual can also buy cover for roadside assistance and breakdown insurance along with the comprehensive cover.
How to Save on UK Auto Insurance
Restrict the amount of coverage benefits.
Reduce the listed number of drivers covered under the policy.
Install a Thatcham 2 device to secure the vehicle against possible theft.
Accumulate no-claims bonuses. If an individual does not file any auto insurance claims for a year, then s/he is eligible for a no-claims bonus at the time of renewal of the policy. It appears in the form of 10 to 12 percent discount on the cover price.
Hike the excess amount. The excess is the portion of the claimed amount that the policyholder has to pay. By increasing the excess you reduce the financial risk of the insurance company. As a result, the premium dips.
With so many options at hand, one has to decide on which insurance policy s/he wishes to buy. The Internet is evolving as a paradise for insurance buyers. It offers great scope to search for different policies and compare them effectively. Also, many UK auto insurance companies offer discounts for buying the policy online.