If you are planning to buy a new car, you will also have to buy an insurance policy - and it most probably won't be cheap. Of course, some motorists will pay more than others but car insurance is nevertheless a big expense.
However, it is important to make sure that you shop around and compare quotes not only to find the cheapest deals but also to make sure that you have got the right level of cover for your new car.
Choosing a new car
The type of car you choose can have a big impact on the premium. Insurers rate every car into one of 50 groups according to a number of factors including its engine size, acceleration power and likely cost of repairs. A car in a lower group, such as a Ford Ka or a Vauxhall Corsa, is generally cheaper to insure than a Porsche 911, which is in group 50. You can find out more about this on our car insurance groups page or by visiting www.thatcham.org. It might be worth taking a look before you check out the car showrooms.
Try to resist modifying your new car, too. Insurers often argue that modifications can compromise the safety and performance of a car, so they load the premiums accordingly. It doesn't matter if the alteration is only minor, such as alloy wheels or a spoiler, most insurers take a dim view of modified cars. Take a look at our modified car insurance page for more information on this.
Gap insurance for new cars
Whichever new car you choose, it is likely to be a prized possession, and you will want to make sure you have adequate insurance cover in place. So you should check whether the insurer will pay out the original value of your new car if it is written off in an accident. If you read the small print of most insurance policies for new cars, you'll find that the company will only pay out the car's value at the time of the incident - and that could be a lot less than the purchase price.
You might therefore want to consider gap insurance, which is a specialist policy to cover the 'gap' in the original cost of the vehicle and its value at the time of the accident. Premiums can be competitive and gap insurance buys peace of mind as you can be sure you will recoup all your loss.
Keep your new car secure
Most insurers recognise that you are likely to take more care of a new car than an old banger, so the cost of new car insurance cover could be lower. You can also help to drive down premiums by keeping your car secure. It's best if you can stow the vehicle away in a locked garage at night. If that's impossible, try not to park the car on the street as it is then vulnerable to theft and vandalism.
Don't forget to minimise the risk of theft by fitting an alarm or immobiliser. But always check with your insurer that the security device is approved, otherwise you might not earn a discount on your premium.
There are a number of other ways that you can cut the cost of new car insurance and you can find lots of useful tips and advice on our money saving tips page.
Temporary new car insurance
It can be as difficult to choose the right insurance policy as it can be to select the right car. But don't be tempted to get behind the wheel without insurance. The government is cracking down on uninsured drivers who cost the industry and estimated £500m a year. If you are caught without cover you will be hit with an automatic fine and could end up in court.
If you don't have time to research the various insurance options, you could take out temporary cover so that you can at least drive your car home from the showroom. A temporary or short term car insurance policy will insure your new car from one day to several months and can help buy you some time to fully investigate the market.
You can compare cheap quotes from hundreds of leading insurers using MoneySupermarket's free, independent service.
Source: MoneySupermarket
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