Types of car insurance explained

What other types of car insurance are available?

There are a number of different policy types depending on factors like the type of car you own or how long you need a policy for. These include:

• Black box car insurance: also known as telematics insurance, this is a type of policy that uses a device inside your car to monitor your speed, accelerating and braking, as well as what times of day you usually use your vehicle and the amount of time you spend on the road. The insurer uses this data to set premiums, with cheaper rates for more careful and lower-risk drivers. Black box insurance can be a good option for younger drivers, who normally face higher premiums because insurers view them as high-risk.
• Temporary car insurance: this type of car insurance policy may be the best option for drivers who don’t need a car all year round, and who might be using a vehicle for a limited period only. Temporary policies usually run for up to 30 days, but some can be extended to up to three months.
• Classic car insurance: if you have an older car that you only take out on the road in the warmer months, a classic car policy can be suitable. Classic car insurance often comes with strict annual mileage limits.
• Pay-as-you-go insurance: also known as pay-per-mile insurance, this uses a tracking app on your mobile phone or a device installed in your vehicle to assess when you’re at the wheel. Pay-as-you-go car insurance records exactly how many miles you cover or how many hours you spend driving, and uses this data to set premiums.
• Business car insurance: if you use your car for work, apart from simply commuting, you may need to upgrade to a business car insurance policy. This will mean you’re properly insured if you’re using your vehicle to make deliveries, for example, or for travelling between work sites.

What kind of policy extras are available?

You can increase the amount of protection your car insurance offers by opting for certain extras – although including any of these will normally lead to higher premiums. Some of the most popular additions are:

• Breakdown cover: this gives you access to a recovery service if your vehicle runs into mechanical difficulties. You can include breakdown cover with your policy in some cases, or buy a separate policy.
• Courtesy car cover: this means you get a temporary replacement vehicle if your car needs to go in for repairs.
• Motor legal protection: also known as legal expenses cover, this helps pay for any legal action that you take after being involved in an accident.
• Personal belongings in the car cover: if you keep expensive items such as laptops in your car, this covers their replacement if they are stolen.
• Windscreen cover: not all insurance policies cover windscreen damage as standard, so you may need to pay extra for this protection.
• Replacement key cover: this will pay out if your key is lost or damaged.

How can I cut the cost of car insurance?

There are a number of steps you can take to ensure you’re not paying over the odds for your car insurance. These include:

• Choose a comprehensive policy rather than third-party insurance: as mentioned above, comprehensive car insurance can in many cases be cheaper than third-party, even though it offers a higher level of cover. As it offers less protection, you might expect third-party to be cheaper, but this is not necessarily the case.
• Provide the right mileage figure: insurance costs are based partly on the distance driven each year. Make sure your annual mileage figure on your application is accurate to ensure you are not paying too much.
• Raise your voluntary excess: all insurance policies have an excess, the amount of money you have to contribute to the cost of any claims. If you agree to increase the voluntary part of this excess, you can cut the price of cover.
• Pay your whole premium up front: if you can afford it, paying for a full year’s insurance in a lump sum at the start of the policy period usually works out cheaper than paying monthly.
• Choose the right vehicle: the cheaper the car you drive, the less it will cost to insure. And cars with less powerful engines should also attract lower premiums.
• Improve your car’s security: fitting security devices that make your vehicle harder to steal or deter thieves should lead to lower costs.
• Search for the best quotes with us: using Uswitch.com to shop around for a range of quotes is a great way to ensure you’re getting the car insurance you need at the right price.

Although there are a large number of different car insurance policy types available as well as countless optional extras, Uswitch.com can help you find the ideal policy when you go through our simple, step-by-step quote-comparison service. For more tips see our guide on how to get cheaper car insurance.