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How to Reduce the Cost of your
Car Insurance
It is obviously desirable to reduce your premium but remember to think
about service and policy coverage as well. It can be worth spending a
little more for better service.
You also need your insurance company to be as helpful as possible in
the event of you having to make a claim. However, here are some basic
tips to help you cut the cost of your cover:
- The importance of shopping around should not be underestimated. 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.
- 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 19 with group 1 cars being the cheapest to insure.
- 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 your insurance company offers voluntary excess, choose the highest
excess you can afford. This can reduce your premium.
- Ask about discounts for Advanced Driving qualifications. Why not
visit the Institute of Advanced Motorists at http://www.iam.org.uk for
more information.
- 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.
- 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.
- Garaging your car can reduce premiums considerably. If you have a
garage use it!
- If applicable ask for discounts for being an older driver. Some companies
design policies specifically for the over 50's.
- 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.
- If you do not use your car very much you may be entitled to a discount
for low annual mileage.
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