Car Insurance – The 5 Biggest Hazards to Low-Cost Premiums

Car insurance is a legal requirement to drive on the roads. However, many of us are paying more than we need to. Here are five tips to help you keep your costs to a minimum.

While most of us groan at the thought of paying our car insurance, it is possible to reduce your costs with a bit of careful thinking. Here are five ways to help you reduce your premiums.

1)      The most obvious way to reduce your premiums is to park and drive carefully. Insurers determine your premiums in accordance with the level of risk you pose to them. If you can lower your potential risk to an insurer, your premiums will follow. For example, where you park can have an impact on the likelihood of damage and theft to your car. Parking in a garage or on a driveway acts as a deterrent to thieves and the chances of accidental damage occurring are minimalised.

2)      If you are under 25, the cost of your premiums is going to be high. Statistically, young men under the age of 25 are far more likely to be involved in an accident than other drivers and the premiums reflect this. However, if you add a second driver to the policy who has a good driving record, then this can balance out the equation, leading to lower premiums. It is important that the second driver is not put down as the main driver as, if you have a crash and come to make a claim, your policy will be invalid and you could be charged with insurance fraud.

3)      Choosing the right car can also impact on your car insurance premiums. If you drive a car that is top of the range, has a huge engine and is fresh from the forecourt, then your premiums are going to be high. Cars such as these are very attractive to thieves, more likely to be driven at high speeds and, therefore, are more likely to be involved in accidents. Choosing a more modest car with a smaller engine and that is a couple of years old can drastically reduce your monthly payments.

4)      Insurers are very concerned about how safe and secure your vehicle is. Installing security devices shows insurers that you are serious about looking after your assets and want to protect them. Cars without immobilisers or anti-theft devices are easier for thieves to steal and this risk is reflected in your car insurance premiums. There are a number of anti-theft devices available, including some high-tech options such as GPS tracking systems. If you have one fitted, be sure to inform your insurer, as it may impact positively on your costs.

5)      While it may not be possible to gain an extensive knowledge of car insurance, knowing the type of policy that is best for you can help. You may not need all the frills and extras that some policies offer. Instead it might be better to choose one that offers the basics. Before choosing your insurance, consider who uses the car and what for. A little thought about the car’s use might influence your decisions. If your car is worth less than £1,000, then you might find Third Party a cost-effective solution. For those with more expensive cars, Fully Comprehensive car insurance offers a greater degree of coverage.

So how do you choose the best policy for your circumstances?

There are literally hundreds of companies competing for your custom, each offering different perks, deals and premiums. Online comparison sites offer a quick and convenient way of weighing up the salient points of each policy.

Instead of getting individual quotes from different providers, comparison sites allow you to see how much a car insurance policy will cost you when compared to others. There are no salesmen involved and there is no jargon to decode. These sites offer an independent assessment of each policy and display the most important information in an easy-to-read format.

Buying your insurance through a comparison site gives you a quick and easy way of finding the best insurance deals around, and can help to keep your insurance premiums down.


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Author: Chris Auty

Voted the Breakthrough Blogger of 2013 by SEAT and the Guild of Motoring Writers , Chris has lived and breathed cars since he was old enough to say 'faster'. With a penchant for hot hatches and an allergy to public transport, he would much prefer to drive a bad car than never drive at all. Fortunately his family has learned to put up with this obsession and the internet has provided a channel for his ramblings.

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