Few people are wealthy enough to be indifferent to the cost of their car insurance. It therefore goes without saying that budget car insurance is attractive to most and essential to many.
While it may be true that many car insurance companies will offer what they term budget car insurance as a way of attracting potential customers, in reality finding this type of low cost insurance of is not always easy.
To find the lowest costs possible, it may be necessary to invest a little time and effort in searching for the best deal. Using a car insurance comparison website could be a good way to do this.
Another additional option is to reduce the amount of insurance purchased and therefore the costs associated. Many insurance companies will offer car insurance that comprises of three categories of cover: third party (TP), third party fire and theft (TPF & T) and fully comprehensive (FC).
TP insurance usually only covers the insured against claims from third parties that may have suffered cost or injury as a result of an accident. In many countries this is the legal minimum insurance that's required for a vehicle to be driven on the roads. This type of cover typically provides no insurance for the vehicle itself such as accident damage or damage through fire / theft.
TPF & T insurance covers the third party risks outlined above and also against theft of the vehicle or damage by fire. Other damage forms will most likely be excluded from this type of policy.
FC cover will cover against third party, fire and theft risks but also will provide various forms of cover against damage to the vehicle such as bodywork dents etc
Starting with TP, these types of insurance usually increase in price as the cover becomes broader. Selecting a lower cover type will typically reduce the costs, but it may be advisable to consider the potential risk factors.
Some insurance companies also offer budget car insurance that's based upon asking the potential customer to reduce some of their requirements. As an example, virtually all insurance policies will carry what's called an excess. The excess is that proportion of the cost of any claim that the policyholder would need to pay. In some cases an insurance company may offer special low price deals based on the policyholder accepting an elevated level of excess on the policy.
It may also be worthwhile looking for a policy that offers cost flexibility around damage limitations. This arises from the fact that statistically some areas of a vehicle are more likely to be damaged than others. At the top of this list are things such as tires, wheels, windows and roof areas. Some FC policies may cover these automatically, some may exclude them automatically, and other policies may offer a cost reduction if they are excluded voluntarily.
In conclusion, in the search for lower cost car insurance, checking between companies will be normal practice for many. Though it's worth remembering that insurance companies may have a built-in tendency to offer the 'full specification' insurance as a start point.
This may be fine and as required, but it may not highlight the fact that costs can sometimes be reduced by compromising on certain aspects of cover received. Finding that elusive budget car insurance might be more a question of thinking through what cover is really needed than it is finding a 'special offer'.
