The basic options available to those who need it for their car are threefold.
- Third only
- Theft and Third Party Fire
All three are allowed in law – the first covers your insurance costs for anyone you collide with (but not yourself). Your own car is not covered for all costs and none of it covered in case of fire, or if it gets stolen.
To work around this, you can improve your level of coverage of third party fire and theft, which ensures that as long as you drive carefully and do not cause any accident then you should be fundamentally OK. However, the fact that you can hit someone else when it is difficult to determine whose fault it was, may mean that you should review the overall assurance.
In general, less the value of the car, unless you provide it. Cars under 1000 pounds worth of insurance for probably a few hundred each year globally.
It goes without saying that the “third party” is only the minimum insurance and cheapest around. When you include fire and theft costs rise a little but not much. The overall level of coverage is the one that really gets the price increases because there are usually good things included.
Some of the key variables to watch for are if you have coverage of the windshield (a stone that flies in the air an efficient 140 MPH can be quite harmful) and whether this includes repairing free chips on the screen with an excess (a fixed price you pay if you claim) and if the claim counts against you in future years.
Which brings me to explain the highly regarded “No claims discount.” For each year that you claim, you generally have the right to a growing “no claims discount.” The amount that it is a business varies, but generally you could see a 20% discount for 1 year of “no claim” 40% for 2 years, 50% for 3 years and 60% or more 4 or 5 years no claims.
Insurance companies can and share your information, it is not possible to claim simply that you have not had an accident 5 years.