Car Insurance: My questions answered

Car insurance can at times be confusing and we might not understand why we pay the premiums we do and maybe why third party can be more expensive than comprehensive. But there are always factors that we can implement in order to help us get the best prices available to us.

By factors, I mean increasing the security surrounding your car, being a careful driver and racking up your no claims bonus. Of course, some of these are fairly obvious and some still want to understand what circumstances are more favourable than others and exactly what our car should have on it to make our premiums drop.

Therefore, I’ve thrown a few questions over to Hastings Direct’s car insurance department just to make some issues a little clearer and get a bit of clarity on a couple of things I wanted to know about.

Security Tracker - Anything MotorQuestion 1: What kind of equipment would you tick on the options list to lower your premium?

Hastings: A security tracker would be a great option to fit to your car, whilst going for a car with autonomous emergency braking would be advisable and there are many manufacturers investing in such technology. Parking assist is another one you might want to opt for.

Question 2: Would it be more rewarding to be a driver who has held a licence for 10 years and has three years’ worth of no claims or a driver who has been driving for five years with the same amount no claims?Parking Insurance - Anything Motor

Hastings: As car insurance is based on risk, the driver with five year old licence and a matching amount of no claims bonus would be considered less of a risk to insure than the driver with a 10 year old licence but only three years’ no claims, and therefore attract a lower premium.

Question 3: Why are there some occasions when 3rd party fire and theft is more expensive than fully comprehensive car insurance?

Hastings: Most insurers see 3rd party fire and theft as high risk business and therefore have to charge more for the service. As a result, less people tend to get quotes for this type of car insurance and go for comprehensive; with more people after this insurance, prices have to be more competitive and tend to be consequently cheaper.

Thanks to Hastings Direct for answering my questions and giving some clarity to some car insurance factors.