Reduce your insurance premium - LookingForALoan.co.uk
Reduce your insurance premium - LookingForALoan.co.uk
Car insurance can provide vital peace of mind when you need it the most. According to figures from the Department of Transport more than 30,000 people were killed or seriously injured on the UK`s roads in 2007 alone. It`s clear that accidents do happen and car insurance can not only cover you for injuries to yourself and others, but could repair your vehicle and get you back on the road as soon as possible.
|
|
|
|
How to reduce your insurance premium
Car insurance can provide vital peace of mind when you need it the most. According to figures from the Department of Transport more than 30,000 people were killed or seriously injured on the UK`s roads in 2007 alone. It`s clear that accidents do happen and car insurance can not only cover you for injuries to yourself and others, but could repair your vehicle and get you back on the road as soon as possible.
Nevertheless, it can be expensive – with a typical comprehensive policy costing in excess of £700 according to the AA British Insurance Premium Index in July 2008. So how can you drive costs down?
Which type of cover is right for you?
The first step is to ensure you are choosing the right level of cover:
• Third party only
Provides cover for injuries to others; damage to other`s property; liability for accidents arising due to a caravan or trailer attached to the car; and accidents caused by passengers. This is the minimum cover requirement in the UK.
• Third party fire and theft
Third party cover with additional security in case your car is damaged by fire or stolen.
• Comprehensive cover
The most complete form of car insurance, this will typically cover accidental damage, personal injury, personal effects in the car and medical expenses. It may also include policy options such as legal assistance or a courtesy car. Options and premiums vary from insurer to insurer.
Clearly the more cover you take out, the better protected you are and the more peace of mind you have. However, depending on your circumstances, you may decide that the more basic cover levels are better suited to your needs.
How to reduce insurance premiums
There are many ways you can reduce car insurance premiums including:
• Shop around online
Comparison websites can compare dozens of quotes in seconds, saving you time and money. Buying online will also save money, as most insurers offer discounts to internet customers due to reduced overheads.
• Drive a conventional vehicle
Cars with low insurance groups typically cost less to insure as they have lower repair and replacement costs than those with high insurance groups. Also avoid modifications, as they increase your level of risk and may invalidate your policy if you don`t declare them.
• Improve security
Park your car in a garage at night if possible. Fit a car alarm, immobiliser or a tracker to earn discounts from many insurers.
• Pay annually
Avoid paying interest charges by paying your premium upfront and in full, rather than by monthly instalments.
• Avoid claims and convictions
Two or more speeding offences could cause your premiums to rise by 74 per cent so stay within the law whilst most insurers will offer a no claims discount if you are able to build up a claim-free driving history.
• Adjust your excess
The higher your excess (the money you pay in the event of an accident), the lower your premium will be. Only set it at a level you can comfortably afford, however.
• Take and advanced driving course
If you`re a new driver, take a Pass Plus course and you could earn a discount in the region of 35 per cent.
• Limit your mileage
Agreeing to mileage limits or to drive at certain times of the day could slash premiums if convenient.
No-claims bonuses and renewals
If you have an accident that was your fault and you make a claim on your car insurance, your premiums will rise at renewal time - so drive safely to try and stay accident free. Most insurers offer no-claims bonuses which reward safe drivers – these can even be protected with some policies.
Generally even with no-claims bonuses in place, renewal quotes increase year on year and what was originally a cheap policy may not stay competitive – so mark down your renewal date and use it as a prompt to shop around for car insurance. |
|
|
|
|
|
|
|
 |
