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lower your car insurance

Lower your Car Insurance premiums

Whenever your about to purchase a new car apart from focussing on the make, engine size and colour of the new car, don’t forget about insurance or nowadays with petrol prices being so high, the miles per gallon, the higher it is the less you will pay in petrol prices.

Always ask before you buy a car about the insurance classification of the car you’re considering buying.The current classification bands are 1-20 (with 20 the highest) with the most expensive or rare cars in the top bracket.

The lower the insurance classification the lower the car insurance premium should be.

How to reduce your insurance premium

If you renew your car insurance every year with the same insurer, then now is a good time to conduct a review of your insurer and search for a more competitive alternative. A driver’s profile will constantly change (your age, occupation, address, type of car) and these factors will affect your premium and the type of insurer capable of offering the most competitive product and price.

 

Here are some ways you could save yourself hundreds of pounds on your car insurance.

1. Purchase online:

Many companies offer discounts when you buy online. Also see if you can pat your insurance monthly, to spread the cost, but make sure you don't end up paying more in total over the year for this feature.

2. Shop around:

When you buy car insurance the golden rule, is to get a number of quotes so can make comparisons on the price and level of cover provided.

3. Don’t modify your car:

Modifying your car will affect your premium. Manufacturers work closely with insurers so that a particular model of car can be insured to a standard. If you modify the car, then the factors on which your premium has been based will have changed and the number of insurers that will insure you is cut dramatically.

4. Drive carefully:

Careful drivers who build up a history of no claims will be rewarded with lower premiums, so it pays not to treat the roads as a race track!

5. Security:

Fit an alarm, an immobiliser or use a steering lock. Store your car in a garage, if you have one, don’t park it on the road. If you have a removable stereo, make sure that you remove it from the car.

6. Voluntary excess:

If you agree to accept a voluntary excess (how much you agree to pay if you have an accident), your premium will be reduced.

7. Low mileage discounts:

If your annual mileage is low, inform you insurer as this can cut the cost of your insurance by up to 15%. Using your car to commute to work will make your premium more expensive.

8. Don’t lie:

When you enter into a contract with an insurer it is entered into in ‘utmost good faith’. If you lie like this, you can allow an insurer to refuse payment if you make a claim. During the policy period, you must keep the insurer up to date with any information which may affect your premium. For example, if you change address then you are obliged to inform your insurer. If you are caught speeding and points are applied to your licence you must inform the insurer. Any modifications to the vehicle must be reported to the insurer.

9. Don’t automatically buy comprehensive insurance:

If your car has a low value you can save a third off your premium by insuring your car for Third Party Fire & Theft.

10. Don’t buy a high performance car if you are under 30:

If you are under 30 and drive a sports car then expect a high premium, especially if you are male. Insurers will take numerous factors into account including your age and the group rating system of the vehicle to be insured. Most family cars fall into groups 6 to 12, unless they have high-powered engines. The different groups available range from group 1 (the lowest) to group 20 (the highest).

Related Sites of Interest

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