What to Look for When Buying Insurance for Your First Car

Whether you've just passed your driving test or have finally saved the money to buy your first car, there's plenty that you need to sort out. Unfortunately it's not quite as easy as handing over the money, filling it up with petrol and driving off into the sunset. There's tax, MOT and of course your insurance to sort out.

Car insurance is often the first thing that you'll need to secure. It's a legal requirement and unless you were hugely prepared and already secured it prior to purchasing the vehicle, you'll need to do get it sorted out before you go any further. So what do you need to do?

Well, it's actually a reasonably straightforward process, certainly when compared with days gone by. The Internet is a huge help, allowing you to search through numerous providers in double quick time. You have the opportunity to visit insurance company websites and see what they offer. You can also get a decent spread of cheap car insurance quotes by using a price comparison service.

It's important to remember that if you're young or have never previously been an insurance policy holder that the rates are likely to be far higher than those offered to more experienced drivers. This will add a significant cost to the ownership of your car and makes it all the more important that you work hard to secure a competitive quote.

You won't have to pay the full policy price in one bulk fee, unless of course you would prefer to. There will usually be an option to spread payments across a year. This can be done by setting up a standard Direct Debit and allowing the insurer to take a set figure each month. By choosing to spread your costs you will have to pay a little more though, so make sure you weigh up your options fully before committing to either.

The price you pay for your policy will also depend on the level of coverage you choose. You'll be able to get third party, third party, fire and theft as well as fully comprehensive. The cheapest of these (and the lowest allowed by U.K. law) will be standard third party insurance, which will only cover you in the event that you cause or are on the receiving end of an accident.

Fully comprehensive insurance, particularly for new drivers, can be a good deal more expensive. But this added cost comes with a far higher level of coverage, protecting you against theft, malicious damage and even things like road rage. You should also have any legal fees paid, receive windscreen replacement and might also benefit from a courtesy car should yours break down. The terms will vary from insurer to insurer, as will the cost for this service. This is why you need to broaden your car insurance search horizons and take the time to understand not only the costs, but the comparative benefits too.

Obviously it's important that you don't sell yourself short on insurance and end up with a policy that doesn't provide you with the coverage needed. Equally though, you don't want to spend hundreds of pounds extra for services you won't need.

During the application process it is important to be honest throughout. This means stating where the car is likely to be kept at night and what it's used for during the day. Whilst bending the truth could help to save a few pounds, it could also see your policy invalidated. So if it is going to be parked in the street overnight and used to commute across the country, say so.

It can take a bit of time to complete the process, but by comparing quotes you can make sure you don't pay a penny more than you have to. Use comparison sites, visit insurers you know or whatever else you're comfortable doing. Try to avoid simply going for the cheapest possible quote as this may leave you with a huge excess and little else. Balance comparative benefits, cost and your budget to find a policy that best suits you and your vehicle's needs.