A guide to insuring your new car
Buying a new car is an exciting process, but the last thing you want after forking out for the vehicle itself is to then have to pay over the odds to insure it before you get to take it out for a spin.
By reading our short guide, you too can learn how to get cheap car insurance too.
In This Guide:
- GAP insurance
- Choice of vehicle
- Make sure your new car stays safe and secure
- Temporary insurance
- Compare insurance quotes online
One of the first things to consider when buying an insurance policy for your new car is what kind of pay out you can expect from your insurer in the event of a write off or theft.
Often, insurers will pay out a sum equal to the value of your car at the time of the incident. Due to the unfortunately large-scale depreciation that occurs with motor vehicles, this will more likely than not be quite a lot less than what you paid in the first place. This is particularly true if your car was bought brand new.
Guaranteed Asset Protection (Gap) insurance covers the difference between the proposed pay out and the original value of your car, leaving your mind and wallet at ease.
Choice of vehicle
The price of the insurance policy you are offered will depend, at least in part, on the kind of car you buy.
There are 50 different insurance groups into which every car built to UK specifications will fall, with those in the highest group costing the most to cover, and those in the lowest group costing the least.
For example, a Peugeot 106 will cost significantly less to cover than a Lamborghini Gallardo, which would be in group 50. It’s not just supercars in the top group though, here you'll also find high end 4X4s like Range Rovers for example.
Having a car that is classed in a high insurance group does not necessarily mean that you’ll have to pay through the nose for cover though, just as insuring a small Vauxhall Corsa will not always be cheap. There are always other factors to consider when buying insurance for your new car.
Make sure your new car stays safe and secure
By keeping your new car secure by, for example, parking it in a garage instead of on the side of the road, you’ll find that the price of the premiums you’re offered will be reduced.
This is because in doing so, you’re reducing the risk of theft according to which the insurance company work out the price of their policies.
Insuring your car is a legal necessity, but if you’re having trouble finding the right annual policy right away, you might want to take out a temporary insurance policy for your new car to make sure you’re covered while you search for something more permanent.
With a short term insurance policy you’ll be able to legally drive your new car for a period of 1-28 days. Temporary insurance policies cost more on a day by day basis than an annual policy would, but can be exactly what you need if you just need cover for a short while.
Compare insurance quotes online
By far the best way to make sure that you get the cheapest car insurance policy for your new car is to compare quotes online by using a comparison service. Simply enter your requirements into the simple form, and we'll pull up a list of the best quotes available on the market so you can start saving and start driving right away.