Car
Insurance - How Can You Lower Your Premiums?
by: Michael
Challiner Many factors influence
the premium for your Motor insurance policy. Your
insurer will have asked you many questions whilst
producing your quote - some of which will affect
your premium and some will not. Below we discuss
the key variables that are within the policyholder's
control.
Consolidating policies
By insuring a number of vehicles with the same
insurer, or by trying to take out home and life
insurance through your car insurer, you may be
able to secure a 'bulk buy' discount.
Location
A big influence on the cost of your car insurance
is where you live. The chance of your car being
broken into or stolen is a key concern for the
insurer. More urban areas traditionally facing
greater risk of theft and therefore tend to be
more expensive than countryside locations.
Excess
By agreeing to pay a greater excess on each claim
you can reduce your car insurance premiums. This
is because you are reducing the liability of the
insurer and therefore in return they are able
to offer you a lower premium.
Your Vehicle
The cheaper and slower your vehicle the lower
your premiums are likely to be. If you are looking
to buy a new vehicle make sure you fully consider
the cost of insurance - you may be able to buy
the car but can you afford to run it?
Mileage
You can control your insurance premiums by restricting
your annual mileage. However, be aware that if
you exceed the restricted number of miles you'll
then become uninsured!
Parking
Where you park your vehicle overnight is also
very important to the insurers. If it is kept
in a locked garage, you should be offered a lower
premium than if you leave it unattended in the
street.
Security
Security devices that prevent or hinder theft
may also reduce your premium. Common examples
include alarms and immobilisers, however, be aware
that as we improve the quality of our security
devices the thieves just become better at bypassing
them.
No Claims Discount
Save up your no claims discount by avoiding making
small claims upon your policy. After a set number
of years, 4 or 5 typically, you'll often be offered
the option to pay an additional small premium
to protect your no claims bonus. This can prove
very helpful if you subsequently end up having
an accident.
Advanced driving skills
By taking an advanced driving course you may
also be able to reduce your premiums. The Institute
for Advanced Motorists and the Royal Society for
Prevention of Accidents each offer membership
which provides you with discounts for both the
cost of driving courses and your car insurance
premiums. Two key variables NOT within the policyholder's
control.
Your Sex.
Women are statistically less likely to have an
accident and, if they do, it's less likely to
be serious. Because of these statistics women
benefit from lower premiums. It is also worth
noting that if you represent one half of a couple
you should consider having the female as the primary
driver with the male as the second driver.
Your Age
The older you are, the less likely you are to
make a claim. As a result insurance companies
charge lower premiums for more mature drivers.
One final piece of advice.
A large percentage of car insurance is now sold
on the Internet. That's because it's convenient
and cheap. Many insurers now give a further 10%-15%
discount if you buy online. |
