Lowering Your Car Insurance Premiums
In recent years, average car insurance premiums have been practically at a stand still. The main reason is price competition. With over 100 insurance companies fighting for your business competition is fierce. This being said, there are always bargains to be found because companies cut their premiums to try and attract motorists with the hope that you will remain loyal and stay with them in the following years. Every year, only 23% of motorists renew their insurance with their existing insurer.
The internet has created a revolution in marketing car insurance over the past few years. It provides a simple way to shop around without having to make numerous phone calls and without spending time sitting through automated phone systems.
Cheap Isn’t Always Best
It is important to remember that the lowest premium isn’t always the best. Some insurers recently have pushed up the level of claims excess that they want you to pay because this helps them provide a much lower quote. Make sure you also check if a courtesy car will be provided if your car is in for repair. You might also want to see if your covered for legal insurances or automatic windscreen replacement.
Here are some tips on keeping your premiums low;
- It is a good idea to group all of your insurance policies – car, home etc. – at one company, this way you will earn a multi-line discount, usually good for up to 10% off your total premium.
- If your car is payed for and old, considering eliminating your collision coverage is a smart move. Collision coverage is the coverage that pays for damage which you cause to your own vehicle and it makes up a large portion of your insurance cost.
- If you are considering buying a new vehicle, make sure you get a quote on how much it will cost to insure the new vehicle. The make, model, and year of the vehicle can affect your premiums considerably. Smart shopping can really pay off.
- Garage your car at night. Insurance companies know that if a car is left on the road at night it is much more venerable to damage or theft. If you don’t have a garage, if possible keep it on your drive.
- Updating the estimate of your mileage annually. If you’ve changed your job or moved home meaning you have shorter commuting journeys. If so, your premiums should be lower.
- Getting married can save you money on your car insurance, particularly if you’re male and under 30.
- If you are under 25, if possible add an older driver with a good driving record onto your policy as a named driver. But make sure they are not too old – premiums start to rise again after the age of 60!
- Consider paying a higher accident excess. The average is about £100. If you are prepared to increase your claims excess, your premium will fall significantly.
- If you are a new driver, improve your driving skills by taking a few more lessons. New drivers can cut their insurance costs by as much as 35% by taking Pass Plus Lessons, which involve giving you extra training for driving in rush hour traffic, night driving and motorway driving. These lessons usually cost between £15 and £30 per hour.
- If your car is old or cheap, you might try considering buying 3rd Party cover. Get quotes for 3rd Party and comprehensive insurance to weigh up the savings.
- Although its hard, try not to speed! Most insurance companies will ignore one fixed penalty fine but if you get more your premium will rise.
- 12. If you’re considering a high spec or performance car consider that they tend to attract thieves and are more expensive to repair – which means they will always cost more to insure.
- Have you got 4 or more years no claims discount? Pay the extra and get your discount protected.
- If you get an alarm or engine immobiliser fitted it could save you between 5-8%.
- Fit a satellite navigation system. Insurers will be giving discounts soon if drivers have a sat nav fitted. Insurance companies are starting to notice that sat navs can cut the accident rate by getting drivers to concentrate on the road more.
If you have 2 or more vehicles in your home, some insurance companies will give discounts for insuring them all in one policy.