Cheaper Car Insurance

Category: Car insurance
Date: 1/14/2008

Depending on the car insurer and the policy that you choose, there is a range of possible ways to lower the cost of your insurance policy. In general:

• Don't just stick to the same provider. Shop around to get as many quotes as possible.
• Don't just choose the cheapest policy you find either, a policy that is just a few pounds more may give you lots of extra benefits.

Age and experience

• Statistically, the younger and less experienced driver you are, the more likely you are to have an accident.
• Older drivers with more driving experience, like those aged over 50 can benefit from lower insurance policies especially designed for them.
• Younger drivers, those aged 25 or under may find that completing a 'Pass Plus' course will lower their premiums by up to 35%, and all drivers will benefit from passing the Advanced driving test.

Gender

• According to statistics, males are more likely to have an accident than women.

Your address

• Insurance companies have access to data that shows the area you live. The more traffic in your area or how much crime there is, such as inner city areas tend to attract higher policy premiums.

Security

• The more secure your vehicle is, the better. Parking in a garage when not in use will lower your premiums. As will fitting it with alarms, immobilisers or steering locks.

Vehicle value

• In general, the lower the value of your car, the lower the price of your insurance. It could be worth choosing a car in a cheaper insurance bracket.
• Making modifications to the engine, or adding extras to it will increase your insurance bill.
• For more specialist vehicles, such as classic or sports cars it could be worth considering specialist insurers.

Mileage

• Insurance companies believe that the more miles you drive, the more likely you are to have an accident. If you can reduce the amount of miles you drive and lower your premium.

Voluntary Excess

• The more you are willing to pay when the less your premium will be

Claims

• The more claims you have made the higher your premium will be, unless of course you have no-claims discount.
  The driver.
• Don't just set up an 'any-driver' policy, you could save yourself money by only having named drivers insured for the use of your car.

Penalty points

• Speeding fines and points on your licence will push up your policy premiums.
• A speeding conviction can double or even treble your insurance premium

Payment

• Setting up a direct debit to pay for your insurance could work out more expensive than paying for the insurance with a lump sum. Some companies will charge added interest.
• If you have home insurance or life insurance with a company that offers car insurance too, you could make a saving by bundling them together.