Keeping those Car Insurance Costs Down

We all know how exorbitant the cost of our car insurance can be. Year after year drivers try to find better deals to renew their policies under. There are various ways in which you can reduce your insurance bill and come up with cheaper quotes. It is always worth changing the selected options in quotations to see how much it changes your quotes.

Third Party or Fully Comprehensive?

It always used to be the case that Third Party Insurance was cheaper than the Fully Comprehensive option. This is no longer necessarily the case so never make this assumption and get quotes for both. Very often you will find that a Fully Comprehensive policy will be the cheaper option. Why? Because the costs are calculated by Actuaries who work out their figures by assessing risk. It is considered that people who take out Third Party polices tend to be a higher risk group and as a result care less about their cars, making the likelihood of a claim higher. They therefore load the cost of this type of insurance. Be aware that many insurers will only offer fully comprehensive policies to cover more valuable vehicles anyway.

Compare Your Options:

Always do your research and compare lots of different companies’ quotes. There are now several comparison sites that will automatically go and compare quotes for things like car loans and insurance. Always get advice on your car loan options when this is what you are looking for. When looking at insurance make sure that you understand what is included in the policy which you are being offered. It is too late to read the small print when you need to make a claim.

Reduce Your Risk:

The easiest way to reduce quotes is to lower the insurer’s perception of your risk. If they think that you are more likely to make claims and cost them money then of course the quote will be higher. There are several common sense ways to do this:

  • Buy a smaller car – quotes are based on things like the engine size and value of your car, expect to pay more if you have a large vehicle
  • Always park your car in a garage or driveway – this lessens the risk of theft and can reduce the quote by between 3-7%
  • For drivers under 25 or high risk drivers add a 2nd driver with a good insurance record
  • Do not get speeding fines or get caught on a mobile device – this can lead to hefty rises in your insurance
  • Don’t modify the car – modified cars are considered more risky as they are not built to the same safety specifications and are more likely to be in accidents
  • Reduce your mileage – the less miles you do the less likely you are to have to claim
  • Always tell your insurance company of any changes in circumstances. If you have to claim and have not this is considered fraudulent and will affect your ability to take out insurance in the future

The main word here is research. Always check your market and don’t make assumptions, they may cost you. When buying a car it is worth considering looking at insurance quotes at the same time as looking at things like used car loans. This will give you a good idea of what to expect when you actually purchase your car. Take advantage of any offers like free insurance when buying cars too. You will be grateful for the pennies saved.

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