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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.
About the Author:
Michael Challiner has 15 years experience in financial services marketing at
senior level. Michael now works as the editor of http://www.life-assurance-bureau.co.uk/car-insurance/
Futher reading
http://www.life-assurance-bureau.co.uk/car-insurance/faqs/car-insurance-faq-home.htm
Futher reading http://www.one-stop-car-insurance-shop.co.uk
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