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 penalised 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.
_______________
About The Author
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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