If you’ve invested time and money in buying the car you want, you won’t be wanting to waste any more time getting your motor on the road. Finding the right vehicle insurance – that is, the most appropriate and affordable – can be a frustrating business. It’s more than just a case of plumping for the first type that comes along. But with a little help, you can be enjoying worry-free driving in no time at all.

Policies

The basic legal requirement of car insurance – and the cheapest! - is “third party” – which will cover the costs of damage to another driver’s vehicle. But it will not cover you for most of the unfortunate circumstances that may befall your car, or you as a motorist. You can add on a “fire and theft” clause to a “third party” policy, or go the whole hog and take out “fully comprehensive” cover. This is the most expensive, but it covers every eventuality, from damage to your car and personal injury costs, to any third party’s vehicle and property.

Shopping around

When comparing companies’ products, ensure they are like for like. Many insurers offer similarly cheap quotes, but the differences in the excesses imposed (the amount for which you are responsible in the event of making a claim) may be hundreds of pounds. And it’s not just a case of finding the best rates. You want good extras and after-sales services, too. Like having the use of a courtesy car, 24-hour customer support and the ability to pay in monthly instalments. These factors can be vital in making life more manageable should you be the victim of crime or an accident.

Costs

The cost of your insurance depends on several factors, beginning with the type of car you own. Insurance companies assign each vehicle to a group, to band them together with vehicles of similar characteristics. A rating of 1 will mean the lowest rates, while 20 is the most expensive group. Other cost factors include the amount of in-car security, your number of previous claims, your vehicle’s extra fittings (which will increase the premium) and where is it kept overnight (a locked garage is better than a public road, where cars are more likely to be vandalised or stolen). City inhabitants have higher premiums than country dwellers, while women are generally offered lower rates than men. Age and occupation are other determining factors, meaning young motorists face higher insurance costs – as do people with jobs considered to be high-risk, like sports professionals, bar workers and builders. Finally, the prices of spare parts and the time taken by repairers play a major role when insurers decide how much a premium should cost, because nearly 75% of money paid out to vehicle insurance claims is for repairs.

Making a claim

Theft of a car should first be reported to the police, and only then to your insurer. Many stolen cars are recovered, having been used by joyriders – which means you will have to wait a while before it can be considered gone for good. Don’t feel restricted to stick to office hours when informing your insurer. Most offer a 24-hour claim line. You will be sent a claim form by your insurance provider, which you should fill in as completely as possible and return as quickly as you can. Keep all relevant documents and reports pertaining to the accident or theft, and make a second copy for your own records for future reference.

If you have third party insurance and the accident was not your fault, then you will need to make your claim through the other driver’s insurance because they will be making the claim to cover the cost of your repairs. First inform the other driver that you hold them responsible for the accident. Ask them to inform their insurance company of the situation. If you have the other driver's details and policy number, then you should write to their insurer, clearly explaining the situation. Finally, inform your own insurance company and let them know that you are intending to make a claim against a third party. If the other driver’s insurance company agrees to support the claim, you will need to send estimates for repairs, along with all other information the insurer might require. If the third party does not accept responsibility for the accident, their insurance company will not be able to support a claim made by you. You should seek advice from your insurance company, motoring organisation or solicitor. Legal action may be necessary.

No claims bonus

The less you claim, the cheaper it will become to insure your car. For one year of claim-free motoring you will receive a 30% discount, or thereabouts. Companies offer different rates, but the average maximum rate, after about five or six years, is a 65% discount. Many insurance companies offer the opportunity to pay a bit more to protect your no claims bonus, usually allowing you to make a small number of claims within a certain number of years without affecting your bonus.