Insurance brokers—what to ask when choosing car insurance

Is the insurance company authorised by the FSA?
All motor insurers have to be authorised by the Financial Services Authority. An insurance broker will ensure that the companies it recommends are authorised.

Do I need comprehensive cover?
Talk to your insurance broker if you are uncertain. If you are driving an old car of little value, you may want to consider third party cover only or third party, fire and theft cover.

Is there any mileage restriction?
Most insurers will want to know how many miles you drive. The less you drive, the cheaper the cover. Have some idea of your yearly mileage before you speak to your insurance broker.

How much is the excess?
All motor insurance policies come with an excess. Your insurance broker may advise you to accept a further voluntary excess in order to bring your insurance premium down further.

What's the limit for legal or medical expenses?
Again, your insurance broker should be able to advise you as to how high these limits need to be. Some insurers include this cover, others charge for it.

Will I get a courtesy car?
This is essential if you need your car for business, so make sure you stress this point when talking to your insurance broker.

Should I protect my no-claims bonus?
Many insurance brokers will recommend this, since the longer you go without making a claim, the more discount you get on your annual premium. By protecting this discount—your no-claims bonus—you pay a little extra each year but you don't lose the much larger overall discount you're building up. Clarify this with your insurance broker before you choose a policy.

Can I get cover for driving in Europe?
Insurers have to provide third party cover for all EU countries, but if you want comprehensive insurance for Europe, get your insurance broker to research suitable policies.

Am I entitled to any discounts?

Your insurance broker should be able to cut your premium if:

• your car is always parked on a driveway or in a garage
• you agree to limit your mileage
• you don't commute to and from work in your car
• you drive a small car
• you limit the drivers on your policy to just yourself
• you agree to a higher excess (having discussed the pros and cons with your insurance broker)

How much will the policy cost?
Finally, check how much the policy costs and ask your insurance broker whether they can get you an extra discount if you pay monthly or buy your cover online.