WHAT TO CONSIDER WHEN PURCHASING YOUR CAR INSURANCE

If you own a car you want to drive on the road then car insurance is something that you have to purchase by law, however, choosing the right policy can be a very daunting task. By reading this Money Supermarket car insurance guide, hopefully you will have a better idea of what to look out for when you buy yours.

Using a price comparison website, you can quickly and easily search the main insurance providers, basically cutting out a lot of hard work. Once have a list of quotes, you then have to make sure you pick the right policy for you. To make sure you pick the right quote, you should think about the following:

" The amount of excess - Your car insurance excess, for those of you who don't know, is the compulsory amount that you would have to pay of any car insurance claim that you make. For example, if your excess is set as £100, and the claim is £500, you will be liable to pay the first £100 of the claim. When you are looking for your car insurance policy, the policy will normally be cheaper if your excess is high, so you should look to strike a fine balance between the two. It's important to remember that if your excess is high and your policy is subsequently cheaper, you will be liable for the amount of excess you chose if you then decide to make a claim.

" Any extras added - When you apply for a car insurance quote online, there are sometimes extras, such as legal, health or contents cover that are added to your policy. You should check to see if the policy you are looking includes these extras and how much you are being charged for them. In some cases if you speak to the provider directly you may be able to haggle and subsequently get the extras down to a lower price.

" No claims bonus - For every year driving whilst have your own insurance policy you build one year no claims bonus. Having no claims bonus shows your insurer that you are a 'low risk' driver which in turn means that your policy will be cheaper. If you have a minimum of 4 years no claims bonus then when choosing your insurance policy you will have the option to protect it. Protecting your no claims bonus means that if you have to make a claim your bonus will still remain in tact. Protecting your no claims bonus does add a little cost to your overall policy but if you have built up 4 years then it's worth adding to your policy.

" One off payments VS monthly - When choosing your insurance policy, many providers will offer the option of paying your car insurance off in monthly instalments or by a one-off payment. If you pay your insurance in one go then the policy will be cheaper than if you pay monthly, so if you have the funds available then I would advise paying this way. If you want to pay for your insurance in one go but you haven't got the funds available, then you could consider putting the payment on a purchase credit card. This type of credit card normally comes with a 12 month interest free period, which means you have a whole year to pay off your insurance without incurring any charges.