In the current marketplace, it’s estimated that the average cost of comprehensive car insurance in the UK is £485 per year. This number continues to rise incrementally too, while it’s a cost that motorists have to pay if they’re successfully protect any investment that they make in a new or used car.

However, the vast majority of drivers have only a basic understanding of auto insurance, in terms of its purpose, the range of options available and the best ways to achieve a competitive deal.

We’ll cover all of these topics in the post below, whilst asking how you can reduce the cost of car insurance over time.

What is Car Insurance?

In simple terms, car insurance represents a contract between a motorist and a service provider that protects the former against financial losses in the event of theft or accidental damage.

In exchange for paying a fixed and predetermined premium, and insurer agrees to cover any such losses according to the terms of the policy.

So, if you’re involved in a collision that isn’t your fault or find that your car has been vandalised, in most instances your insurance firm will issue a pay out that helps you to cope financially.

Some insurance policies also cover liability and medical costs, in circumstances where a collision incurs bodily injuries, lost wages or the need for physical rehabilitation.

What Types of Coverage are Available

As the auto insurance market has evolved, we’ve also seen a considerable rise in the number of products and policy types on offer.

As a result, service providers AGJ offer a diverse range of policies to their customers, including coverage for smart repairs and the provision of fleet and commercial vehicle insurance.

This and similar service providers also offer liability and collision coverage to their customers and standard, along with the option of comprehensive insurance to provide greater protection against adverse weather and accidents involving animals.

Another increasingly popular type of coverage is gap insurance, which covers the difference between the actual cash value of a vehicle and balance still owed on financing at the time of an accident.

This protects customers who have huge amounts of cash outstanding on their finance agreement, providing considerable peace of mind in challenging economic times.

How to get the Best Possible Deal

With these points in mind, the question that remains is how can you approach getting the best possible deal on your insurance?

The key lies with comparing the insurance market in real-time to identify the best possible deals, using both objective comparison sites and individual business websites.

Then, you can take specific deals and use these as leverage to negotiate with service providers, especially those who offer bespoke insurance policies to their customers.

Try to avoid focusing solely on the cheapest deals too; as it’s more important that you seek out comprehensive and effective coverage that’s available at a negotiated price that offers great value for your hard-earned money.