The majority of car insurance policies have a compulsory excess as well as an optional voluntary excess. The compulsory excess is the amount you have to pay towards the cost of any claim. When you take out an insurance policy, you will be asked if you wish to choose a voluntary excess as well. Essentially, by agreeing to pay more towards the cost of any claim, your premium will usually be cheaper. However, think carefully – can you afford to pay both the excesses in the event of a claim? If you’ve shopped around and think you’ve found a fantastic bargain, look closely at the small print, in particular the excesses and endorsements section. Check the compulsory excess levels – this is the amount you would have to pay upfront in the event of any claim. The cost of the compulsory excess could make the policy ridiculously expensive (and more than you can afford to pay) compared to what you initially thought was the cheapest price. Although it seems daunting now, just remember that if you drive safely, you will soon build up your own No Claims Discount which will greatly reduce the cost of your insurance premiums. Remember, driving without insurance is illegal and if you are involved in an accident that is your fault, you will have no protection against the spiralling expenses involved, not to mention the legal consequences of not having insurance cover.

Adding an older or more experienced driver to your policy as a ‘named driver’ can, in some cases, bring down your premium – but don’t be tempted to add them as the ‘main driver’ and yourself as a ‘named driver’ if you do the majority of the driving. This is called ‘fronting’ which is illegal. ‘Fronting’ could result in the policy being cancelled, earn you a conviction for driving without valid insurance and make it harder and more expensive to find cover in the future.

Statistically, the fewer miles you drive, the less of a risk you are! Insurance policies are available with a limited mileage clause, therefore reducing your premiums.

Even something simple such as adding alloy wheels to your car has to be disclosed to your insurer as it is seen as a modification to the vehicle. Leave the fins, spoilers and big exhausts until you’ve got a few years experience under your belt!

FAQs Archive

Q: What should I do if I’m involved in a motor incident?

Firstly, check everyone is okay. If not, dial 999 for the emergency services and apply first aid until they arrive. Unless they are seriously injured, you need to make a decision whether to move everyone else to a safe place away from the roadside and further danger. If you have a camera or a phone with a camera app, take photographs of the scene and the vehicles involved. If you have your Glovebox Accident Report Form in the vehicle, use this to record full details of the incident. This includes: Full names and addresses of all parties involved including witnesses Registration numbers and brief description (e.g. make, model and colour) of all vehicles involved Name of other party’s insurers – and policy number if they have it to hand Time and location of the incident Brief description of the incident Motor insurance claims should be reported as soon as possible. Make sure you know where your policy documents are in order to reference your policy number. In the event of an accident you should call 0844 848 1200 and the experienced team will efficiently manage all aspects of your claim on your behalf, to minimise disruption to you.

Q: So, do high premiums tempt young drivers to drive uninsured?

There is no excuse for driving without insurance – and it is illegal not to have valid motor insurance in the UK. If you are convicted for driving without insurance it will make any future applications for motor and all types of insurance difficult to obtain and more expensive. It will also affect your credit rating, make it more difficult to borrow money or obtain a mortgage.

Q: But my premium is more than the value of my vehicle!

When a claim is made, it is not simply the cost of repairing or replacing the vehicle that the insurer has to consider. The greatest cost is the compensation to other parties involved who have suffered injuries – whether short term or life changing – or damage to property where the other policyholder was not at fault.

Q: If I haven’t made a claim, why has my premium gone up?

Simply, because the cost of meeting claims has gone up very significantly. The increase of the compensation culture and the cost of legal claims. The ABI estimates that 10% of every motor insurance premium is going to the legal profession. Insurance fraud and uninsured driving are also growing problems.

Q: Pay Your Premium In Full

This is not always an option, but if you are lucky enough to be able to afford to pay your premium upfront, this could save you paying a monthly payment charge. However, many insurers do offer monthly instalment facilities if this is not an option for you.