Tips for low premium |
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| Tips for reducing car insurance premiums |
- Young and newly qualified drivers can boost their no-claims bonus by taking an
additional test called Pass Plus. Some companies will credit people who have
passed Pass Plus with an extra year's no claims bonus.
- Drivers who don't have full no-claims bonus can build their bonus up quicker
with a policy from some companies called Bonus Accelerator. This policy runs for
10 months rather than the usual 12. At the end of those 10 months, provided no
'fault' claims have been made, you get a full year's no claims bonus. So, somebody starting out with zero no-claims can build up to the maximum five years
no-claims bonus in just four years.
Be Careful if you choose this scheme You usually have to stay with the same
insurance company throughout, in order to build up your maximum no-claims bonus.
Companies don't usually allow you to carry a 10 months policy over from one
company to another, so please check before you sign up for this type of scheme.
- Buy a smaller-engined car.
If insuring your prospective car is proving too expensive, consider buying a car
with a smaller engine. Remember that buying a cheaper car will not make a huge
difference to your premiums.
If you or your spouse buy a second car, you may be able to get an introductory
bonus on the new car. This means that your insurer may give you the same
no-claims bonus on the second car as you have on the first, provided you insure
both cars with the same company. It is best to check this with your insurer
first because not all companies offer this facility, and the conditions for
introductory bonus vary between companies.
- If your insurance company offers voluntary excess, choose the highest excess
you can afford. This can reduce your premium. Taking a higher Voluntary excess ( The amount of money you have to pay the
insurance company if you have to make a claim) than the standard £100 could give
you a substantial discount on their premium.
- If you do not use your car very much you may be entitled to a discount for low
annual mileage. Declare your mileage! Telling your insurer how many miles you do, especially if
it is below average, they do in a year, and simply let the salesperson plug in
an average of, say, 12,000 miles. That's 230 miles a week. If you do less than
that, you could be missing out on potential savings by not letting your insurer
know.
- Similarly, if you don't use your car to travel to work, let your insurer know.
You may be paying for cover you don't need.
- If you have access to a garage or driveway at night, use them. Using off street
parking, rather than leaving your car on the street will attract a discount with
most insurers.
- Insurers prefer prevention rather than claims, so vehicles fitted with an engine
immobiliser or alarm may qualify for a discount. The devices which qualify for a
discount vary from insurer to insurer, so make sure you check before getting any
device fitted.
- Women can often get cheaper car insurance than their male counterparts.
Statistically speaking women are seen as better drivers. Although male
drivers often find this hard to believe, the facts are derived from the
collection of claims data over several years - decades in fact by car insurance
companies.
However, despite the fact that women are statistically seen as better drivers,
they generally have the same number of accidents as men. It is the severity of
the accident that is very different between the sexes. Typically an insurance
company has to pay out a lot more to fix a car when a man has had an accident -
the car has to be extensively repaired or even written off. Women’s accidents
tend to require less repair because their accidents are often caused by bumping
into somebody, reversing into the garage - that type of thing.
- Go and get a on-line quotation from the Insurance Centre
Click the banner on the left and find the unique quotation system which can
access over 450 policies from the UK's most respected and competitive insurance
providers, saving you time and money.
Different insurance companies target different customers, so make sure you are
using the best company for you. There are companies who specialise in policies
for young drivers for example.
Buying via the internet can save you money as online companies generally have
lower overheads. You are more likely to get low cost car
insurance UK online than by any other method.
Some other important points to remember :
- Fit insurance approved anti-theft devices to your vehicle. Approved alarms and
immobilisers can significantly reduce premiums.
- Insure all your cars with the same company as this may entitle you to a
multi-car discount.
- If you need other types of insurance, check if your insurance company offers
discounts for taking out home and motor insurance with them.
- Check the insurance group of any new car you are considering purchasing.
Premiums can vary greatly on seemingly similar vehicles. Groups run from 1 to 20
with group 1 cars being the cheapest to insure. A reliable, low
profile vehicle is the best type to have if you want low cost car insurance UK.
- Be aware of the value of your car. If you can afford to replace an older car,
perhaps you don't require a comprehensive cover. Even if it is completely
written off, the most you will get if your car is in an accident is its market
value, which may only be a few hundred pounds. Weigh that against what you would
save on your insurance bill.
- If you have a car specifically for the younger drivers in your household, make
sure it is an older, less valuable car.
- Modifications to vehicles can sometimes mean higher premiums. Check with your
insurance company before making any modifications; they could mean forfeiting
low cost car insurance UK.
- Be very careful about losing some, or all of your No Claim Discount. It makes a
huge difference to premiums. You need to carefully consider the financial impact
of making a claim. Remember that the purpose of insurance is to protect you from
major incidents, not minor bumps and scrapes.
- If applicable ask for discounts for being an older driver. Some companies design
policies specifically for the over 50's that reward experience with low cost car
insurance UK.
- Driving an imported car with parts that are expensive and hard to replace will
increase your premiums. In this case shopping around is even more important.
Check the "Specialist Insurance" category in our directory for details of
insurers who can offer you the best deals.
- UK car insurance brokers act on behalf of customers and are able to provide car
insurance quotes from a panel of leading insurance providers.
- There are now insurance companies that specialise in providing student car
insurance, although the cost of this can vary depending on the type of policy
required.
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Rules and regulations - Latest 2007 
