Cheapest Car Insurance

I was speaking to a friend of mine the other day; he was looking for the cheapest car insurance available. As the economic crisis has hit everyone, he was considering changing his car insurance to a provider with cheaper premiums. I advised him to reconsider and to ask the following questions to any company he would approach:

• First and most important, how much is the excess for the following scenarios: if you should be involved in an accident, your car is stolen, cracked windscreen, if you are under 25 years of age, if the car is driven outside of the country.
• What are the general exclusions? For example: if you are involved in an accident that is your fault, will they still pay out?

• Are the premiums fixed for a year?

Here is an example of the insurance industries “clever” ways of weaseling out of a claim:

An acquaintance of mine drove his car through a pool of water, it was raining a lot and the water accumulated in the street. His car broke down a few meters later. When he phoned the insurance company to file a claim, they told him that it was because of his negligence (driving through the water in the first place), and that they would not pay the claim. His entire engine needed to be replaced. The quotes he received were in the $12000 range. He now has to keep paying for a car which he cannot use!

I have to try to look for a silver lining some where; there are cheap car insurance companies out there that are not all out to rob you. Make sure you get quotes from at least four different companies, and make sure you know exactly what is covered and what is not. Also decide what coverage is important to you and make sure that at least those points are covered.