Car Insurance - Low Cost Car Insurance

To your utter dismay, your 16-year-old son passed his driver's education course and scraped together enough cash for his own car. You gave your blessing and called your car insurance agent to add this to your car insurance premium. Then you go into shock.

How can the insurance cost as much as the car he bought? Answer: Risk.

The car insurance company looks on you as a collection of risks. Your sex, your age, your marital status, driving record, type of car and place of residence all contribute to an insurer's prediction of whether you'll file a claim.

The car insurance policy excess
When you make a claim you have to pay the first part of it. This is called the policy excess. Typically you'll pay £100 to £150 for damage, fire and theft, and £60 for windscreen claims.

If you have more than a third-party only car insurance policy, don't sign up till you've checked how much the policy excesses are for each section: damage, fire and theft. Sometimes even third-party only car insurance policies still cover you for windscreen damage, so take this into account when you're buying.