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Budget car insurance

Running a car isn't cheap. After the actual cost of the car, you've got the MOT, fuel, tax, servicing and insurance. With the majority of motorists shelling out hundreds, if not thousands, of pounds each year to keep their cars on the road, it's no wonder people are turning to budget car insurance as a way of keeping costs to a minimum.

According to the most recent British Insurance Premium Index from the AA, insurance costs jumped 10% during the last quarter of 2015, which is the largest quarterly increase since 2011. The hike is largely blamed on the rise in Insurance Premium Tax (IPT), which came into effect at the beginning of November 2015. Costs have also been pushed up due to an overall rise in the number of insurance claims.

If you're looking to make savings wherever possible then a cheap, no-frills car insurance policy could be your best bet.

Is third party the most affordable option?

Third party insurance provides you with the minimum level of cover needed to drive on the road. In the event of an accident, the insurer will cover costs for damage caused to the other driver's car, as well as costs for any injuries they sustain. But third party insurance doesn't pay out if your own vehicle is damaged or if you're personally injured in the accident.

If you're after cheap car insurance, bear in mind that third party won't always be the most affordable option for your individual circumstances. The average cost of this type of cover has increased in recent years due to its popularity among younger drivers, who are statistically most likely to be involved in an accident.

The best thing you can do is compare all levels of cover when searching for budget car insurance: third party, third party fire & theft and comprehensive.

What can I do to make my insurance cheaper?

Insurers calculate your insurance based on risk. But there are lots of things you can do to lower your perceived risk so that you stand a better chance of getting an affordable policy, such as:

Increase your excess

All budget car insurance plans will feature a compulsory excess set by the insurer. You will then have the option to set a voluntary excess on top of this and will be expected to pay the full sum if you were to make a claim.

Generally speaking, the greater the voluntary excess, the cheaper your insurance. This is because you're choosing to take some of the risk away from the insurer. When setting your excess, be realistic: only set a figure you will be able to afford if you have to claim.

Build-up a no claims discount

A guaranteed way to cut insurance costs is to build up a good no claims discount over several years. If there are any minor repairs that need to be carried out on your car, it could be more cost effective to sort them out yourself rather than going through your insurer and risk losing your discount. But if you are involved in an accident you've a legal obligation to notify your insurer, even if you've chosen to pay the repair bill yourself.

Avoid mods and install safety features

Kitting out your car with modifications like spoilers, alloys and performance exhausts, will almost always lead to a hike in insurance costs. So, if you're after an affordable policy, keep it standard.

Safety modifications, on the other hand, can cut insurance costs. If your car hasn't got them fitted as standard, you might consider installing immobilisers, approved alarms or tracking devices to improve the safety.

Pay for insurance in full

When it comes to paying for your car insurance, you've got two options: pay in full or pay in monthly instalments. If it's financially feasible to do so, opt to pay in full at the start of your policy, as this will save you paying any interest.

Do your research

Most insurers split all cars on the UK road into an insurance group. What this means is that the type of car you drive can have a big impact on the price you pay for insurance. So, if you haven't bought your car yet but want to pay as little as possible for cover, do your research before signing your name on the dotted line.

The benefits of a Hastings Essential policy

Our Hastings Essential cover offers a no-frills solution, so if you're looking for budget car insurance, you've come to the right place.

We'll provide you with just the essentials, making sure you're paying for exactly what you need and nothing more, which means cheaper car insurance.

A Hastings Essential insurance policy covers you for:

  • Cover for damage to your car (except damage caused by fire or theft) up to its market value.
  • Damage or loss by fire or third up to its market value.
  • Legal liability for damage to other people's property up to £20m (or £25m in total, including all costs).

Other benefits that feature as standard include:

  • A guaranteed courtesy car
  • An adjustable policy excess
  • The option to protect your no claims discount
  • All repairs guaranteed for three years
  • Cover against uninsured drivers provided you can give details of the make, model or registration of the uninsured driver's vehicle.
  • FREE half price MOT voucher with every Hastings Essential quote.

We also offer a range of optional extras, which allow you to customise your policy for an additional fee. For example, you might choose to add cover against chipped windows and windscreens.

For an insurance policy that just covers the basics, get a Hastings Essential car insurance quote now and see how much money you could save.

All information is correct at time of publication. Hastings Direct cannot be held responsible for any misinformation displayed.

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