You’ve just passed your driving test and are now ready to hit the open road – but before you do, you need to make sure you’re properly insured. In this article, we’ll outline how much you can expect to pay for car insurance each month.
How Much Does Car Insurance Cost?
The average car insurance premium in the UK is £478 per year, according to Association of British Insurers (ABI) data for the third quarter of 2018. That’s the equivalent of £39.83 per month. The ABI says that the typical comprehensive insurance policy covers damage to your own vehicle as well as third-party claims, and includes personal liability cover in case you’re sued.
Factors That Affect Your Car Insurance Rates
There are a lot of factors that affect how much you pay for car insurance each month. Some of these factors are within your control, like your driving history and the type of car you drive. But there are also many factors that are out of your control, like where you live and the overall crime rate in your city.
Here are some of the most common factors that affect car insurance rates:
1. Your Driving History
One of the biggest factors that insurers look at is your driving history. If you have a clean record with no accidents or traffic violations, you will most likely get a lower rate than someone who has had several accidents or speeding tickets. Insurance companies view people with a clean driving history as less of a risk and therefore offer them lower rates.
2. The Type of Car You Drive
The type of car you drive also has a big impact on your insurance rates. If you have a newer, more expensive car, you will pay more to insure it than an older, cheaper model. This is because newer cars are more expensive to repair or replace if they are damaged in an accident.
How to Get the Cheapest Car Insurance
There are a few things you can do to get the cheapest car insurance. First, shop around and compare rates from different companies. Second, ask for discounts. Many insurers offer discounts for things like having a good driving record or taking a defensive driving course. Third, consider increasing your deductible. This will lower your monthly premium, but you will have to pay more out of pocket if you have an accident. fourth, consider buying a less expensive car. Cars with lower insurance rates are usually smaller and have fewer safety features. Finally, make sure you are getting all the discounts you qualify for. Discounts can save you a lot of money on your car insurance premiums.
The Different Types of Car Insurance
There are a variety of car insurance types available, and the amount you pay each month will depend on the type of coverage you choose. Here is a brief overview of the different types of car insurance:
Liability Insurance: This is the most basic type of car insurance and covers damages to other people or property in the event that you are at fault for an accident.
Collision Insurance: This type of insurance covers damage to your own vehicle in the event of an accident, regardless of who is at fault.
Comprehensive Insurance: This is the most comprehensive type of car insurance and covers damage to your vehicle from events such as theft, vandalism, or natural disasters.
Personal Injury Protection: This type of insurance covers medical expenses and lost wages for you and your passengers in the event of an accident.
Uninsured/Underinsured Motorist Coverage: This type of insurance protects you in the event that you are involved in an accident with a driver who does not have adequate insurance coverage.
A few final tips for saving on car insurance
If you’re looking to save on car insurance, there are a few final tips you can keep in mind. First, make sure you have the right kind of coverage for your needs. There’s no need to over-insure yourself if you don’t drive very often or don’t have a particularly valuable car. Second, shop around and compare rates from different insurers. Don’t just go with the first company you find; get quotes from several companies and compare them. Finally, consider raising your deductible if you’re comfortable doing so. A higher deductible will mean lower premiums, but it also means you’ll have to pay more out of pocket if you do need to make a claim. With these tips in mind, you should be able to find a policy that’s both affordable and meets your needs.