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9.7 Featured Articles
Car insurance, as we all know, is a legal requirement for driving on Britain’s roads, but insurance as a concept has been around much longer than cars have, and even longer than Britain in its current format has. Here’s a quick run through some of the early history of insurance. The first insurance policy as we know it was codified in the Code of Hammurabi around 1750BC. Hammurabi’s code was the first comprehensive codified law system and included a style of insurance practiced by early Mediterranean sailing merchants. If the merchant received a loan to help with his trading, he often agreed to pay an additional sum in exchange for a guarantee to cancel the loan should the shipment be stolen. A type of insurance more familiar with us was that invented in modern day Iran. The heads of different ethnic groups would, each year, give the monarch a present. If the present was deemed to be valuable enough it was registered in a specific office, subsequently, if the giver of the present should then find himself in trouble, he could receive from the court a sum up to double the worth of his original gift. Perhaps the most direct connection that can be found between car insurance and early forms of insurance comes from Genoa in the 14th century. These individual insurance contracts were based on the prevalent form of transport of the day, the ship. Whilst insurance wasn’t a requirement, it was a good idea for merchant mariners and a variety of specialised varieties developed for ships just as can be found today for cars. This then was developed in London by a certain Mr. Edward Lloyd who opened a coffee house that became popular with mariners, and then a place for those willing to underwrite merchant ventures. The coffee house has become known today as Lloyd’s of London and is a world leader for marine insurance. Moving swiftly on towards modern types of insurance, before the arrival of insurance companies in the late 17th century in England, “friendly societies” existed, building on the Greek and Roman “benevolent societies.” These friendly societies paid amounts of money into a general sum which could then be used for emergencies. It was the Great Fire of London which precipitated the invention of the first modern insurance company as we know it. In 1680, Nicholas Barbon opened an office to insure brick and frame homes against the depredations of fire. From the earliest arrival of the automobile car insurance was available, the first recorded liability insurance was written in England in 1895, though it was extremely expensive. From then it was not long before countries introduced mandatory car insurance laws, and insurance grew cheaper as the market became more competitive. Today thousands of companies offer insurance, with dedicated providers such as Kwik Fit Insurance coming as recommended for car insurance.
That is not to say that comparison websites are not a useful tool, but they shouldn’t be considered the end of the insurance process. You are likely to find a cheap policy but it may not necessarily offer the best value for money when you look at what it actually includes. One thing you should do is have a look around for insurance companies that cater particularly to your demographic, if you have a lot of experience and a long history of no-claims, or if you are a woman, if you drive a lot, if you are newly qualified, all of these demographics have specialist companies who aim to offer them the best deal. Another thing you can do is look for owners’ clubs. If you have a vintage car, or a particularly expensive car you may find that an owners club is the way for you, as they often have access to specialist insurers who will find you a good deal. Alternatively, you can consider things that are not connected to the price of the policy. For example, some people think it’s very important to have financial products that are environmentally or ethically sound. Some of these types of companies can only be found by a slightly more thorough look. Another thing you should consider is optional extras and complimentary incentives. It has long been a tactic of financial companies to offer a service or a product combined with extras to attract more customers. With car insurance some companies offer you service contracts or M.O.Ts, and this sort of combination can save you a little extra, even if the policy is not the cheapest out there. With Kwik Fit Insurance for example, you get a free M.O.T and 10% off at Kwik Fit centres when you take out a policy. Take a look at the Kwik Fit Insurance website to see if they can offer you cheap car insurance. Ultimately finding a car insurance quote is very easy, but if you put in a little more effort you can usually find a really good deal. Give a quick think to what exactly you are after, and shop around a little bit. Remember, whilst comparison websites can be cheap, they don’t necessarily find you the best deal out there.
Firstly, you must thoroughly research the car you want. It needs to be reliable, practical and ultimately affordable to run over the long term, so check if your budget will extend to the type of fuel you will have to use, as well as the tax insurance and general maintenance costs over a period of months and years. Old used cars may need further repair work down the line, so factor that in too. Some, like Evans Halshaw used cars may go through an intensive pre-sale assessment to spot any maintenance problems, but always check as some dealers may not offer this service. Car insurance policies may also reveal further hidden costs, so look on a few price comparison websites to check any possible surcharges. Buying used cars privately can often turn out a few more surprises; while it's the cheapest way to buy a used car, there is also a good chance that you could get a dodgy offering which could hit your wallet big time in the long run. Also consider that a dealer may offer a warranty, fit new tyres, and give 12 months of MOT and tax. Professional dealers are also just as likely to haggle, so consider this when heading into even the most upmarket of outfits. Third on your list of things to do is to scrutinise all documentation. Check the current and previous MOT certificates as well as the V5 document, which shows the registered keeper and not the legal owner. From here, conduct a vehicle background check to ensure that the used car does not have outstanding finance, has been stolen or is an insurance write-off. These can cause all kinds of problems in the future should one of the three be true. Finally, bring a friend, even if you know a lot about cars. When you go, view the car in good light and test-drive it before committing yourself to it. Here, you can discover rattles, mismatched panels and colour problems on the bodywork. Don't jump head-first into a car purchase. While you may find yourself really wanting - even desperate for - a used motor, it is a big purchase that requires plenty of forethought. Be confident, relaxed and happy with your investment by being considerate first. |