Car Insurance Articles

10 Ways To Cut Your Car Insurance

February 10, 2008 11:40 pm Mark Reducing Your Premiums

As the average cost of car insurance continues to spiral higher and higher we are seeing a massive increase in online competition, with more and more car insurance companies and brokers vying for your business. 

You need to make use of these services if you are to stand any chance of reducing your premiums, because if you sit back and stay with the same insurance company for ever, the chances are you will never even see the offers in the market.  So how can you reduce your premiums?

Check out all of the competition.  Like financial affairs, too many people tend to stay with the same insurance company for years, simply because they cannot be bothered to look around.  Rest assured, if you don’t ask for a better deal and check out the competition they will not come to you!

Security.  Did you know that by adding an extra security precaution to your car, you should be in line for a discount on your premiums.  Let us not forget that the insurance industry is a risk related industry, the risk of your car being in an accident and the risk of your car being stolen.  If you can reduce any of the risks associated with your vehicle, this will reduce your premiums.

Excess.  The larger the excess you are willing to pay on your car, the less the premiums will be simply because you are reducing the liability of the insurance company.  A low excess offers more risk that you will claim, a higher excess means there will need to be a larger claim to make it worthwhile to you.

Low mileage.  If you only use you car for short journeys, then you should be telling your car insurance company.  The fewer miles which you drive the less chance of having an accident – it’s simple!

Pay your premiums in full.  If you pay your premiums by monthly direct debit the chances are that you will pay more than someone who pays a lump sum for the full year.  The difference can be in excess of 20% in some cases, so be very careful.

Stick to the laws of the road! While this may seem the most obvious piece of advice, it is the best you will ever hear.  The more offences you commit on the road the higher the perceived risk that you will have an accident, and the higher your premiums.  If you stick to the laws of the road then you can very quickly build up your no claims bonus and see your premiums discounted year on year.

Buy your car insurance policies online.  If you ring your local insurance company and they give you a quote over the phone, all you need to do is log onto their website and enter your details.  You should be eligible for the same car insurance policy they quoted over the phone, but many online insurance companies will give you a 10% discount as standard – with some offering higher discounts.

Do not go for high powered cars.  The higher the power of your car the higher your car insurance premiums will be, its simple – the more power the more chance of an accident or your car being stolen.  If you need a high powered car at some stage of your life try and wait until you get a little older and have “saved up” your no claims bonus. 

Pick the type of policy which best fits your needs.  As many people will know, there are in essence 3 different types of car insurance policy from the basic 3rd party to third party fire and theft to full comprehensive.  If you do not need fully comprehensive, or you cannot afford it, go for one of the cheaper options – the difference can be startling, although the levels of cover are very different as well.

Green cars.  The car insurance industry is very much trying to be seen to be leading the way with eco friendly travel.  As a consequence many car insurers will offer substantial discounts to so called “green cars” which are environmentally friendly.

These are just a few of the ways in which you can reduce your car insurance premiums, and while on their own they may not seem much, if you add them together they can lead to some rather large savings.  Good luck!