How to compare car insurance quotes in the World

Sometimes it's not easy finding the best car insurance deal.
Comparing quotes from direct insurance providers, brokers and price comparison websites can be time-consuming and frustrating.
To help you find car insurance that's right for you, here are some tips on comparing policies and information on what we can offer you as an insurance broker.

What is the best deal for my motor vehicle?

When you compare car insurance quotes from several different providers, always look at the policy features as well as price.
Make a simple table listing the policy benefits, exclusions and costs for each quote. Things you might want to include are:

• the levels of compulsory excess you'll pay for things like accidental or windscreen damage
• the level of cover you'll receive against theft of your personal belongings
• whether or not a policy covers you to drive other cars
• whether a policy covers you for driving in Europe, and if it does, for how long

What about insurance price comparison websites?

Price comparison websites can save time because they allow you to view several car insurance quotes at once. Although the cheapest quote (in a list of quotes provided for comparison) can be attractive, do look closely at the policy benefits as well as the price. You may receive fewer benefits if you decide to pay a lower premium.

What does the AA do as an insurance broker?

As a leading car insurance broker, we find the lowest quote we can by comparing car insurance prices from our panel of insurers – each search for a car insurance quote is customised to find the best deal for you. This means that if you choose the AA for car insurance we'll help you to find the best deal again when you come to renew your insurance with us.
We also show you all of our car insurance policy benefits up front. So when we search for your car insurance quote you'll already know about the policy benefits you can receive.

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How to find the right car insurance- tips for women

Peace of mind is important, whether you use your car for work, leisure, or for taking the kids to school.
You want to know that if something happens to the car you can get things sorted quickly and stay mobile.
So you look for a comprehensive policy which has a 24-hour claim line and provides a replacement car while yours is repaired. But what other benefits can women expect when buying car insurance?

Replacement car seats

If you have a family, it may be worth checking the comprehensive cover will replace child car seats and booster seats if they are stolen from the car or damaged in an accident or fire.

Replacement locks

Cover which includes the cost of lock replacement is another useful benefit, and it could save you money if you are unlucky enough to lose your keys.

Personal possessions cover

When comparing car insurance policies, remember to look at the level of personal possessions cover on offer. If you carry valuable belongings, like your mobile phone, around in your handbag, then choose a policy that provides a good level of personal possessions cover. This way, providing you've locked the vehicle, you're covered if your handbag is stolen from your car on the day you forget to take the bag with you.

Help with recovering uninsured losses

Before you a buy a policy, see whether the insurance company provides assistance in recovering your uninsured losses from a third party. If it does, you have the reassurance of knowing that in the event of an accident caused by a third party, you'll receive professional help in attempting to recover uninsured losses, like your policy excess or a loss of earnings. Some policies also provide assistance to help you pursue a personal injury claim after an accident.

Protect your no-claims discount

Insurance statistics show that women drive safely and make fewer and less costly claims than men. When you get an AA quote you can protect the no-claims bonus that you've earned by driving safely.

Car security

If you can avoid it, don't park your car on the street at night. Better still, use the garage if your home has one and lock it at night – the extra security could bring a discount on your premium.
Also, insurance companies can advise on which security devices can help reduce your car insurance premium. Tracking devices and immobilisers are likely to attract a discount.

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What you get with our comprehensive car insurance

As one of Britain's largest car insurance brokers we're serious about car insurance for women.
We offer the same wide range of policy benefits at affordable prices to all drivers, but with over 300,000 female customers* we understand the cover you need.

• dedicated UK claimline available 24-hours a day, 365 days a year
• courtesy car while your car is being repaired by an approved repairer
• personal accident cover up to £5,000 (£7,500 if you're an AA member)
• windscreen, window and sunroof repairs without loss of your no-claims discount
• cover for personal belongings up to £250 (£500 if you're an AA member)
• replacement child seats and booster seats
• assistance with overnight accommodation or onward transport following an accident

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Best terminology explained of Car insurance

Your car insurance – we try to make buying a policy as clear and straightforward as possible for you.
But sometimes it's easy to confuse IPT with TPFT, or the FCA with the ABI.
To help you make sense of the jargon that's often used to describe car insurance, here is our guide to motor insurance terminology.

Association of British Insurers (ABI)

Many insurance companies are members of the ABI, but membership is not compulsory and the ABI is not a regulatory body.
ABI members sit on the Group Rating Panel, which recommends the car insurance group rating for each new model built to a UK specification.

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Approved repairer

A garage recommended by your insurance company for car repairs covered by your insurance policy.

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Comprehensive cover

The highest level of car insurance cover, which usually covers you for:

• injuries to other people
• damage to other people's property
• accidents caused by your passengers or a driver named on your policy
• the use of a trailer, while attached to your car
• fire damage and/or theft
• accidental damage to your own car
• medical expenses, up to a stated limit
• loss of or damage to personal effects in the car, up to a stated limit

Please note that policy features will vary between insurers, so always check them before you buy.

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Driving other cars (DOC)

Many insurers don't offer this as a standard policy feature, so make sure you're covered before getting behind the wheel of someone else's car. It's also worth noting that when it is included, you usually only get third party only cover.

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Fault claim

An accident or loss where you are considered to be to blame, or where you or your insurance company cannot recover costs from somebody else.
Remember, if your car is hit while parked, by someone who cannot be traced, this counts as a fault claim.

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Non-fault claim

With a non-fault claim your insurer is able to recover the cost of the claim from someone else.

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Financial Conduct Authority (FCA)

The UK's financial watchdog, the FCA regulates the financial services industry, including insurance companies. The FCA can advise you on making a complaint against an insurance company.

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Indemnity

As an insurance policy holder you are placed in the same financial position following a loss as you were before it. For example, if your insurance company pays to repair your car following an accident, you are in the same financial position as you were before the car was damaged.

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Insurance Premium Tax (IPT)

A tax on general insurance premiums, including premiums for car insurance. The tax is included in the price of your car insurance premium.

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Insured value

The total amount the insurance company will pay out for your car if it's damaged beyond repair. This will either be the amount you stated the vehicle was worth when taking out the policy, or the current market value at the time of the claim – whichever is lower.

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Material fact

Any information that may influence either an insurer's decision to offer you cover or the premium they charge for it. If you leave out information which may influence a decision to offer cover, your policy may be invalidated.

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No-claims bonus (NCB)

For each year you drive without making a claim on your insurance you get a year's no-claims bonus, subject to a maximum. This bonus reduces the cost of your car insurance premium for the following year. Also described as a no-claims discount (NCD).

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Settlement

What your insurer pays out for a claim.

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Thatcham Research

The Motor Insurance Repair Research Centre (Thatcham Research) carries out research for the motor insurance industry on the cost of car repairs and vehicle security. The Group Rating Panel, which meets to assign new car models to an insurance group, is administered by Thatcham Research on behalf of the Association of British Insurers.

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Third party only (TPO)

Third party cover is the minimum level of car insurance cover required by law and contains no cover for damage to your vehicle. It usually covers your legal liability for:

• injuries to other people
• damage to other people's property
• accidents caused by your passengers or a driver named on your policy

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Third party, fire and theft (TPFT)

Third party fire and theft cover provides the same level of cover as third party cover, but protects you against damage to your vehicle from fire, or theft of the vehicle, as long as you're not at fault.

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Uninsured losses

Any losses not covered by your insurance policy, such as your policy excess, any out-of-pocket expenses following an accident, eg a loss of earnings, or compensation for an injury suffered in an accident.

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Uninsured loss recovery (ULR cover)

The assistance in recovering your uninsured losses from a third party, where an accident is the third party's fault.

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Underwriter

An underwriter decides whether to accept you as an insurance risk and then calculates your car insurance premium.

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6 best ways to bring down the cost of your car insurance

If you're a young driver looking to insure your first car, you probably already know that you face some of the highest car insurance premiums around.
Just a look at road accident figures for young drivers can explain why insurance premiums are so high.
What you may not know is that there are a few things you could do to bring down the cost of car insurance in your first years on the road.

 

1. Five facts about accidents involving young drivers*

1. One in five drivers has an accident in the first year of driving
2. 26 per cent of road accidents involve at least one young car driver aged 17 to 24
3. 79 teenage drivers were killed on the roads in 2009, another 770 were seriously injured and 9,500 slightly injured
4. A higher proportion of young driver accidents occur on Friday and Saturday nights
5. 57% of reported accidents involving young car drivers occur in urban areas

Being aware of the risks that come with being an inexperienced driver can help you to think about how you can drive safely and avoid incidents which may involve an insurance claim.
* Sources
AA Public Affairs report: Young drivers
DfT Road Accident Statistics Factsheet No. 6, 2009: Reported road accidents involving young car drivers

2. Earn a no-claims discount

If you drive safely – by following the Highway Code and staying within the speed limit – you will reduce your chances of being involved in an accident. By avoiding accidents you will improve your chances of earning that all important no-claims discount when you come to renew your car insurance.

3. Choose a car in a low insurance group

In the UK every new car is assigned to a car insurance group. Rated from 1 to 50, each insurance group is based on how much the car is likely to cost insurers per claim. Cars in group 1 represent the lowest cost for insurers, so the lower the insurance group a car is in, the lower your insurance premium is likely to be.

4. Car security

Thinking about the security of your car could help you reduce your premium. Things to consider:
Where your car is kept overnight
If you can, the ideal place to keep your car is in a locked garage. If this isn't an option, your car is best kept off the street.
Security devices
It may be worth considering additional security devices for your car. Your insurer can advise on approved security devices. Devices which may attract lower premiums include:

• alarm/immobiliser systems
• high security door and ignition locks
• mechanical immobilisers
• glass etching – etching the registration number to vehicle glass
• a visible VIN (Vehicle Identification Number) which can be seen through the windscreen acting as a further deterrent to thieves

Remove valuables from you car
Take the stereo, sat nav and valuables with you when you lock your car.

5. Don't modify your car

Fins, spoilers and other extras may look good, but if you modify your car it's likely to mean a higher car insurance bill.

6. Compare like with like when buying car insurance

Car insurance policies with the same price may not offer the same level of benefits. So when you search for insurance compare like with like to see whether a policy covers everything you need.
If you think you've found a bargain, always look closely at the detail, particularly at any compulsory excesses which you would have to pay when making a claim. What looks like cheap car insurance could actually be expensive if the excess is more than you can afford to pay.

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Do you need another Income protection insurance policy?

Income protection insurance is a type of life insurance that provides an income if you're unable to work. It's often overlooked, because being out of work is not the cheeriest thing to think about. The insurance payment kicks in after a certain period and covers a portion of your income. And, like many things in life, it's not as simple as it sounds.

There are two main types:

Agreed-value insurance, the most expensive option pays out a benefit agreed to reflect your income at the start of the policy. This type's not affected by any fluctuations in income - kind of like 'agreed value' car insurance cover, rather than market value.

Indemnity value policies are cheaper and more common. These verify your income at the time of making a claim and may adjust your benefit accordingly. So your payout salary can depend on things like maternity leave, working part time or becoming unemployed.

Indemnity value policies provided by super funds are the cheapest, with fewer features and less flexibility. They may also be limited to a shorter time period.

How long does it last?

This depends on how much you want to cough up for better contract terms. The more you pay for the insurance, the longer they'll pay you in the case of illness or injury. Policy terms range widely, from two to five years, or up to age 60 or 65.

Do I need income insurance?

It depends. Income protection policies are designed to meet the costs of 'living', rather than ensuring family members receive a payout after your death. If you're young and single with no dependents and limited fixed expenses, income insurance is useful. If you're a family type who needs to look after loved ones, life insurance may be a better bet.

So how much cover do I need?

Here you'll need to do some homework. Income protection covers roughly 75% of your income if you're sick, injured or unable to work. To get the best cover you'll need to budget your standard costs - like monthly mortgage or car loan payments – along with any dependents you want to provide for, plus the cost of managing any investment assets. This will help you decide what level of cover you need.

How much will it cost me?

Shop around and compare cover and prices - they differ greatly. Premiums are set depending on:

• age (premiums may increase or cover may decrease as you get older)
• gender
• health and pre-existing conditions
• whether or not you smoke
• occupation (for example, a manual laborer pays different premiums to an office worker)
• the time you choose to wait before receiving payment

Stepped or level income protection insurance premium… say what!?

The fun doesn't end there. Now we'll talk about different types of premiums.

• A stepped premium starts out cheaper, but increases over time.
• Level premiums are constant but vary depending on age at entry. They start out more expensive, but after 10 to 12 years of cover they're the cheaper option.
• If you plan on sticking with the same provider, a level premium is better in the long term.
• If you like to shop around, a stepped premium is wiser.

The tips and traps of income protection insurance

This isn't an exhaustive list. Before committing to a policy you should compare product disclosure statements. You might also consider getting professional financial advice.

• When taking out a policy, ask these key questions: What's covered? What's not covered? How much will I be paid after a claim? What will the insurance premiums cost now and later?
• Consider getting a policy with index-linked premiums and cover so you know it will keep up with inflation.
• Consider a non-cancellable policy, otherwise companies may reassess your health or other factors on each renewal, possibly raising your premiums or refusing to continue cover.
• Look for a policy with Guaranteed Future Insurability, a benefit that allows you to increase your level of cover without further underwriting. This is important if your circumstances change due to things like buying a home or having a child.
• Offset clauses allow insurers to reduce payouts if you have other income (for example, sick pay or Centrelink benefits). Check the relevant section of the policy for details.
• With group insurance provided through super: the agreement is between the fund trustee and insurer. This may make the claim and payout less straightforward. Check the waiting period (how long before you receive payment, often 30 or 90 days) and the benefit period (for how long payments will be made — typically two years or sometimes until your normally expected retirement age).
• Some policies pay out if you're unable to perform your normal occupation. Others only pay if you can't perform any occupation for which you're suited by education, training or experience. Look out for policies that pay if you're unable to perform your regular occupation.

Watch those terms

When taking out any insurance policy, you should check carefully the terms and conditions. You should also check the way the key terms of the policy are defined.

Nick, a farmer from Gloucester, found this out the hard way:

Nick had an income insurance policy with a large insurer. The policy was fine, but Nick had a not-so-typical income situation, because the money he made varied depending upon the success of the farm each year.

When Nick had an incident, the company refused his claim because they had defined his assessable income as being based on his taxable income. Sadly for the year in question, Nick had no taxable income. Instead, his income that year came from a legitimate repayment of money he'd lent to the family company in previous years.

Nick had seen no mention of 'taxable income' being the basis of assessing the insured's income. Luckily he was able to use an independent claims assessor to help negotiate with the insurer and eventually reach a compromise.

• Our tip: It's important to read all the terms to make sure you're not caught out at a tough time.

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