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The
Best Articles and Resources About Car Insurance
Affordable Car Insurance
15 Ways
to lower your car insurance
quote
by Andrew Bowen
15 Ways to lower
your car insurance
quote
1.Shop around
The difference in
price between
various companies
can be significant.
What one company may
consider a high risk
factor another
company may not view
as so important.
Insurance companies
arrive at a price
for your
car insurance by
adding or
discounting money
after each answer
you give to the
questions they ask
you. Each company
has its own rules as
to what they
consider should
increase or decrease
your premium. By
shopping around you
get a better list of
prices to compare.
2.Buy a lower group
car
One of the important
factors that
insurance companies
take into account is
of course your
vehicle. There are
thousands of
different cars on
the road so
companies divide
them up into groups.
Most companies will
adopt the ABI
(Association of
British Insurers)
group rating. This
splits up vehicles
into 20 different
groups. Generally
speaking the higher
the group rating for
your vehicle, the
higher your premium
will be. Some
companies may also
combine your driving
experience with the
vehicle group to get
a better idea of how
high the risk is.
This is one of the
reasons why young
drivers should
consider buying a
lower group car if
they want to lower
their insurance
cost.
3.Consider Third
Party Only cover
A Third Party Only
insurance policy is
the minimum amount
of cover legally
required - it is
also the cheapest.
Generally speaking
you should consider
opting for this type
of policy if your
vehicle is of low
value. In the
unfortunate event of
having an accident,
any damage to a
third party vehicle
will be covered but
any damage to your
vehicle is not.
However, if your
vehicle is of little
value then you may
not be too
concerned. It may
not be worth paying
extra for a Fully
Comprehensive policy
in these
circumstances.
4.Maintain a good
credit rating
More and more
insurance companies
are adopting credit
scoring techniques
as part of the
overall calculation
of your car
insurance premium.
By keeping a good
credit history you
may avoid any
additional premium
that companies add
to your price for
having a bad credit
score.
5.Buy on the web
Many insurance
providers now offer
some good discounts
for buying the
policy over the
internet. The theory
is that by
purchasing your
insurance over the
web, you are saving
the company money by
not requiring
telesales agent time
and incurring
free-phone costs.
This saving is
passed on to you in
the form of a
discount for buying
online. If you have
got prices by
telephone then check
your quote again on
their website, you
may be surprised at
how much cheaper it
is.
6.Have a higher
voluntary excess
During the quotation
process you will be
asked how much
voluntary excess you
want to have.
Insurance companies
will generally
include a compulsory
excess amount on the
policy but give you
the opportunity to
increase this if you
wish. The more the
voluntary excess the
lower your premium
should be. However,
in the event of a
claim, you will have
to pay a higher
amount yourself, up
to the total amount
of excess on your
policy.
7.Reduce your annual
mileage
How many miles you
do a year is a
common question that
can affect your car
insurance premium.
The more miles you
do the more your
premium is likely to
be. Quotation
systems and
telephone agents
will often suggest
an amount of miles
for you. Try and
work out how many
miles you will
genuinely do. It may
be less than the
amount suggested. Of
course, you should
always give an
honest answer to
this and other
questions.
8.Keep a clean
driving record
This may be easier
said than done.
However, by having
few or preferably no
driving convictions,
you can avoid being
penalised by
increases in your
car insurance
premium. Getting
caught with a
speeding fine is
often not the only
financial penalty
you incur. Insurance
companies take very
seriously all
driving convictions
and it is usually an
important part of
their rating
process. You can
expect an increase
in the cost of your
insurance if you do
get caught with a
driving conviction,
so it pays to be a
safe driver.
9.Keep claim free
This ties in neatly
with number 8 above.
The biggest factor
affecting the cost
of your car
insurance premium is
how many No Claims
Bonus Years you
have. Full No Claims
Bonus is generally
considered by most
companies to be five
years or more, this
can give you huge
discounts, in some
cases up to 75%. By
being a safe driver
and avoiding
potential claims,
you can continually
benefit by building
up your number of
claim free years.
Every additional No
Claims Bonus year
you get, the lower
your car insurance
cost should be. Some
companies give you
the option of paying
a bit more on your
premium to protect
your No Claims
Bonus.
10.Be realistic
about the value of
your car
Most of us have an
inflated view as to
what our car is
worth. When asked
the value of your
vehicle during the
insurance quotation
process, people will
often state an
amount that is
unrealistic and
above the real value
of the car. People
do this as they
believe that this is
what they will get
back from the
insurance company in
the event of a
claim. The reality
is that the company
will only pay out
what the car is
worth at the time of
the claim and not
what you stated for
the quote. In fact,
by giving a high and
unrealistic value,
you can increase
your car insurance
premium as this is
often a factor
affecting your final
price.
11.Remove
unnecessary named
drivers
Additional drivers
on your policy
usually mean a
higher premium. A
lot of people add a
number of extra
drivers on the
policy just in case
that person needs to
drive the car.
However, having all
these drivers will
push up the cost. By
only naming drivers
on the policy that
will definitely
driver the car, you
can lower the final
cost. If you find
that an unnamed
driver needs to
drive the vehicle
then most companies
will allow you to
temporarily add a
new named driver for
a small cost.
12.Improve your car
security
Theft of and from
your vehicle are
important
considerations when
insurance companies
calculate your
price. Most
companies will give
you a discount for
having better
security of your
vehicle. An alarm
and immobiliser will
usually attract a
small discount
whilst having a
tracker device
installed may give
you a larger
reduction. Some
companies may insist
on having such
devices installed on
more expensive and
desirable cars
before they even
consider offering
you a price.
13.Take an advanced
driving test
Although not
compulsory, taking
an advanced driving
test can not only
improve your driving
skills but also help
to lower your car
insurance premium.
Some companies look
favourably on people
who have taken the
advanced test as it
shows commitment to
safe driving thus
lowering the chance
of having a motoring
accident.
14.Pay your premium
in one go
By paying for your
car insurance all in
one go, you can
avoid paying
additional interest
charges that would
be added on if you
opted to pay by
instalments. The
interest charges can
be quite
significant, so if
your finances allow,
you can save a good
amount of money by
paying for the whole
lot up front. In
some cases,
companies may even
give you a small
discount for doing
this.
15.Get married
Okay so this may
seem like a dramatic
final way to lower
your premium.
However, a number of
insurance companies
offer lower premiums
when your named
drivers are insured
and spouse as
opposed to two
unmarried drivers.
Some companies
believe that this
shows an element of
stability which is a
hallmark of safer
drivers and give you
a discount on this
basis.
Copyright © 2004
Accept Direct
Limited
http://www.acceptdirect.co.uk
About the Author
Andrew Bowen is the
CEO of Accept Direct
Limited. Accept
Direct sell UK car
insurance through
their website
http://www.acceptdirect.co.uk |
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