15 Ways to Lower Your Car Insurance Quote
by: Andrew Bowen
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.
Get a cheap UK car insurance quote from
http://www.acceptdirect.co.uk
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 penalized
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.
Andrew Bowen is the CEO of Accept Direct Limited. Accept Direct
sell low cost UK car insurance through their website
http://www.acceptdirect.co.uk
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