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.
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