The importance of car insurance to families with small children

Car insurance is a legal necessity in the UK and can provide vital peace of mind for families with small children who rely on their vehicles to get around.

Broadly there are three levels of cover available:

- Third party only: covers injuries to others and damage to their vehicles.
- Third party fire and theft: third party cover, plus cover against fire damage and car theft for your own car.
- Comprehensive cover: a more complete form of car insurance with options that vary between providers and may include courtesy cars, personal accident cover, personal possessions cover, breakdown cover and more.

Why is comparing car insurance so important for families?

For families with tight budgets there is added urgency to save money, which makes shopping around for car insurance crucial as the gulf between premiums can be substantial. For example, a 26-year-old teacher with a 2004 Ford Fiesta could pay as little as £315 through the cheapest provider but more than £1,000 a year with the most expensive quote.

It`s not just the financial savings, however. It`s also important to compare the cover available from different insurers so you have suitable protection in place for your family.

For example, would you want to be stranded at the roadside at night with your small children if you suffered a breakdown? Many insurers now offer roadside assistance as part of their car insurance packages and even include mobile phone locators to help track you down if you breakdown and don`t know where you are. Also look to see if the service comes with onward travel in case you need to get your child to school; and if accommodation costs are covered if you are stranded far from home.

Several insurers also offer child seat cover meaning that if you are involved in an accident your child`s car seat will be replaced regardless of whether there has been any visible damage or not.

Many providers offer courtesy cars as standard in their policies which could be crucial if you rely on your car to get around  especially if you live away from the shops or your child`s school or nursery. Many insurers also offer accidental damage cover which could be a saving grace if your child inadvertently damages your vehicle.

You never know how good an insurer is until it comes time to make a claim. So it could be worth reading some online reviews to familiarise yourself with the experiences of past customers. Also look to see if the provider has a dedicated 24hr claims line so you can resolve your problem without hassle.

Finding the right provider can provide peace of mind for families. Here are some key points to consider when shopping around:

- How much does it cost?
- What options are available?
- How good is its claims process?

Given how busy Mums and Dads are you may not want to spend time calling individual providers or trekking from website to website for quotes. Thankfully however, car insurance comparison websites can do the work for you, comparing deals from as many as 90 different providers with one search so you can find a policy and quote to suit your needs.

How to make a car insurance claim

If an accident occurs, don`t leave the scene. Instead, calmly deal with the situation, note down the contact details of any third parties involved and if possible note contact numbers for witnesses and take photographs.

From there, call your car insurance provider as soon as possible to begin the claims process. Follow its instructions carefully and make sure you are honest so you don`t risk invalidating a claim.

[Please note that the deals quoted were available at the time of writing, 10.02.09, and are subject to change]