You are about to buy the car you’ve always wanted and want to know which insurance company is the best for you being affordable and still have the coverage you require. But before you buy that car, the following must be taken into account:
Many factors have an influence the premium for your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote – some of which will affect your premium and some will not. Below we discuss the key variables that are within the policyholder’s control.
By insuring a number of vehicles with the same insurer, or by trying to take out home and life insurance through your car insurer, you may be able to secure a ‘bulk buy’ discount in save money in the process.
A big influence on the cost of your car insurance is where you live. The chance of your car being broken into or stolen is a key concern for the insurer. More urban areas traditionally face greater risk of theft and therefore tend to be more expensive than countryside locations.
By agreeing to pay a greater excess on each claim you can reduce your car insurance premiums. This is because you are reducing the liability of the insurer and therefore in return they are able to propose a lower premium for you.
The cheaper and slower your vehicle the lower your premiums are likely to be. If you are looking to buy a new vehicle make sure you fully consider the cost of insurance – you may be able to buy the car but can you afford to run it? The colour of your vehicle also plays a role in your premiums: red cars tend to lower your premiums whilst black vehicles raise your premiums.
You can control your insurance premiums by restricting your annual mileage. However, be aware that if you exceed the restricted number of miles you will then be uninsured!
Where you park your vehicle overnight is very important to the insurers. If it is kept in a locked garage, you should be offered a lower premium than if you depart it unattended in the street.
Security-devices that prevent or hinder theft may also reduce your premium. Common examples include car alarms and immobilisers, ect. Be aware, however, that as we improve the quality of our security devices the thieves just become better at bypassing them.
No Claims Discount
Save up your no claims discount by avoiding making small claims upon your policy. After a set number of years, 4 or 5 typically, you’ll often be offered the option to pay an additional small premium to protect your no claims bonus. This can prove very useful if you subsequently end up having an accident.
Advanced driving skills
By taking an advanced driving course you may also be able to reduce your premiums. The Institute for Advanced Motorists and the Royal Society for Prevention of Accidents each offer memberships which provides you with discounts for both the expense of driving courses as well as your car insurance premiums.
Two key variables are NOT within the policyholder’s control, namely:
Women are statistically less likely to have an accident and, if they do, it’s less likely to be serious. Because of these statistics, women profit from lower premiums. It is also worth noting that if you represent one half of a couple you should consider having the female as the primary driver with the male as the second driver.
The older you are, the less probable it is that you are to make a claim. As a result insurance companies charge lower premiums for more mature drivers.
One final piece of advice
A large percentage of car insurance is now sold on the Internet. That’s because it’s convenient and cheap. Many insurers now give a further 10%-15% discount if you buy online.