Young Drivers Insurance

The Real Costs Of Cheap Car Insurance

When you are looking for car insurance, it can be tempting to choose the cheapest policy available. However, you have to ask yourself why this policy is so cheap. Insurance is a business, and companies will not simply be willing to give policies away cheaply for nothing. In most cases, you will find that cheap car insurance has a number of drawbacks that can actually cost you money in the long run.

Excessive Exclusions

One key area to check with cheap car insurance policies is the exclusions. On cheaper policies, these can be extensive. You may be better off asking what exactly your policy does cover you for, rather than what it does not. For example, many cheap policies do not cover you for electronic failure. This means if your car is damaged through an electrical fault then you will not be able to claim for any repairs. Make sure you check the exclusions carefully. If they seem excessive, then you will be better off looking for another policy. There is no point paying for insurance that does not provide you with sufficient cover.

High Excess

You can save on car insurance by accepting a higher excess. However, some cheap policies can have exceptionally high excess limits. This could mean you will have to pay over £500 before the insurance company will cover your claim. This can be extremely costly, and as most standard insurance claims are under £1,000, this means you will end up paying the majority of the cost, every time you make a claim, on your insurance.

Disclosing Information

Insurance companies have come under fire in recent years for non-disclosure. Companies are not obliged to tell you exactly what they need you to disclose to them for your policy. This means if you accidentally do not disclose some relevant information (it could be remarkably trivial) then they will use this as an excuse to get out of paying your claim. Insurers are not required to ask any questions at the time of application or renewal. This means it is up to you to research what information your insurance company might need and then provide it to them in writing when you take out a policy. Do not forget to keep a copy of this for yourself along with proof of postage.

Proof of No-Claims Bonus

Some insurance companies may offer you cheap deals if you have no-claims bonuses from existing policies. However, when you make a claim they could demand proof of this no-claims bonus before they will process your claim. If you have not kept a record of this from your previous polices you could end up having your claim refused, even though you legitimately have a no-claims bonus. This could happen even if you have been paying for your insurance policy for months or even years.

Fraudulent Applications

Car insurance is so expensive these days it can be tempting for some people to lie on their applications forms in order to get cheaper insurance quotes. However, this can be an enormous risk to take as insurance companies have a lot of information at their disposal. They can easily check your background details and discover if you have tried to put in a fraudulent application. Insurance policies are about trust. It is essential to make sure you have honestly tried to provide the company with your correct details.

Fronting

Fronting is one of the ways in which people try to get cheaper insurance premiums. This is inherently pretending that the car belongs to someone else and then listing yourself as an additional driver. This is exceedingly common among young drivers who try to claim the car belongs to an older, more experienced driver (typically a parent) in order to qualify for lower premiums. However, this is actually a fraudulent crime. If the insurance company finds out, your insurance will be revoked, and you could be ‘blacklisted’. This means you will have trouble getting insurance from other providers. You could also face a fine, conviction and a minimum of six points on your license if you are caught carrying out insurance fraud.

Minor Damage

You need to report any minor damage to your car or theft attempts, even if you do not intend to make a claim. No matter how insignificant you may think this is some insurance companies may use it as against you in the future. For example if your car was tampered with and then stolen a few weeks later they could refuse your claim if you failed to report the first incident.

Convictions

If you receive traffic convictions, you have to tell your insurance company. This will affect your risk factor and insurance providers may wish to put your policy premiums up. Do not wait until renewal time to try and save money but let them known straight away. If you fail to inform them of convictions, and then try and make a claim on your policy, they may refuse.

Making Cheap Car Insurance Policies Work for You

Cheap car insurance can be a convenient way to save money on your household bills. However, you do need to take care to choose a reputable provider who will deal with your claims fairly. Avoid small, unknown company who may be offshore. They could be difficult to reach and may not have a sterling reputation for paying out on claims.

Check the documents over fully before committing yourself and make sure the policy can provide you with the right cover for your circumstances. Never lie on your application form, even if you think this will make your policy cheaper. This can invalidate your cover and is also a fraudulent offence which could have serious repercussions.

The penalties for not informing your insurance company of changes to your circumstances can be significant. Your provider could use this as an excuse not to pay out for claims, even if the changes have nothing to do with the accident, theft or damage you are claiming for.
 

Compare prices from young drivers specialists

Go Compare's comparison site lets you compare the prices from many of the UK's top insurers (some of them accept monthly payments if you're 18+) but they don't just find you the lowest price on offer from them but they also let you compare the different policy features too so you can see how much you can save by accepting a higher excess, lower mileage, etc. Sometimes these can make a considerable difference to premiums.

Click here for a price comparison

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 Restrictions on young drivers
 Young drivers car insurance
 How to avoid car accidents
 Pay as you drive insurance
 Slashing insurance costs
 Bad weather driving
 Buying a safe car
 Driving safely

 

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