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How to reduce the cost of car insurance

Less desirable and low-value cars are cheaper to insure

When I was 17 I wanted to own a Ferrari and live life in the fast lane. Even if you could have paid for the car, then you couldn’t have paid the insurance to cover it. At 17 you are new to the world of driving and statistically more likely to file an insurance claim. Mixing high powered cars with inexperienced drivers is not something auto insurance companies like very much, the possibility of a claim skyrockets with the price of the premium following it. When you’re young and inexperienced, buy a low-value, fuel-efficient car to try to keep your auto insurance premium to a minimum. If it is worth less, then it will cost less to repair / replace when in your youthful exuberance you spoil it. Actually, the same logic applies to everyone, the lower the value of the vehicle and the lower the car insurance policy in most cases. Sports and premium cars will always cost more to repair in an accident, so insurance will reflect that. New cars now come with countless anti-theft devices and driver aids that, in many cases, will help lower the cost of insurance, so keep an eye on the spec sheet when shopping around for a new car. A good rule of thumb is that less desirable, low-value cars are cheaper to insure.

Age is a concern

I mentioned it earlier and it bears repeating. Generally, the younger you are, the higher your auto insurance premium. This is due to inexperience and a youthful belief that bad things will never happen to you. Statistics say otherwise, which is often a shock to an unsuspecting young driver who ends up in an accident wondering how it happened to him … Driving experience and age are generally linked and that leads to a method to lower the premium. your insurance, whatever. How old you are will benefit from advanced driving courses, and many auto insurers offer discounts for these qualifications. It may only be a five to 10 per cent savings for the course, but with a £ 1000 premium it is worth saving and it will stay with you for years, so it should be a good investment, not to mention it will make you a better driver. .

Keep adding to the no-claims bonus

The more years you can accumulate without making a claim, the better, as most auto insurers will offer a discount on your insurance for this. You are effectively proving that it is a good deal and because you have not made any claims, it is a good risk for them to underwrite it. There is nothing you can do here except keep your nose clean and not make a claim. If you own a low-value vehicle and you dented it when parking, it is recommended that you do not make a claim on comprehensive insurance because it would reduce your no-claim bonus, probably for a small amount of money and you may even end up paying most of it. depending on the excess. In that case, as long as you haven’t caused damage to any other vehicle or property, rest assured, fix it yourself, and your savings on the no-claims bonus will be sweet the following year, eventually, when you’ve accumulated three or more years. no-claims bonus, you can protect your bonus, which means that even if you make a subsequent claim, you will not lose your bonus.

Convictions ain’t cool

If you’re a downtown teen, then an ASBO can be a badge of honor. However, insurers are less impressed by convictions, so it’s best to avoid them if you can. However, minor speeding violations are not in the same category as serial killer, so if you have a couple of points it won’t be the end of the world or have a huge influence on your premium depending on the insurer. .

If you have a garage, use it

What are garages for? If you ask the average person, they will probably tell you to put away all the children’s toys, the home gym, the bikes, the freezer, and the dryer. I have news for all of you; the garage is designed to house your vehicle when you are not using it. The fact that you put a physical barrier between any opportunistic thief and your car is a really good thing and auto insurance companies will recognize this and lower your premium if you park in a garage overnight. Using your garage will save you money; there is nothing easier than that.

Anti-theft devices

Most modern cars come with factory installed immobilizer and alarms, and if you notify your insurer, they will verify they meet approved standards and apply discounts if applicable. You can get other devices that move in the passenger footwell until you park and then generally attach to the steering wheel or gear stick. These are mechanical devices and some attract more discounts if used, just do your homework before buying. Thatcham is the organization that rates safety devices and overall a decent mechanical safety device will meet Thatcham’s approval very prominently along with any premium discounts you may expect, so choose wisely.

Use a trusted broker

Car insurance is big business with around 30 million vehicles on UK roads, so there are a host of car insurance companies to choose from. Ironically, the big names you are familiar with are probably on your head due to massive marketing campaigns on TV, online, etc. Regardless of the message, those marketing campaigns have to be paid for and that means they may not have the best rates, although the sheer scale of some of these companies means prices will be high due to purchasing or subscription power. The best advice is to compare a couple of different prices from different companies. Call the insurer and then call a comparable competitor and then maybe a small auto insurance broker. Each one will ask you if you already have a price and you should tell them what it is. Generally, if they want the business, they know what to beat. By the time a broker tells you that they cannot match the price, it is likely that they are close to the best price on the market or that they are talking to a broker who is not a specialist in the area.

A word of caution about price comparison sites

There are many price comparison sites that promise to lower the cost of your insurance policy: Money Supermarket, Go Compare, Confused, etc. They certainly help lower the cost of insurance, as most of the major players fight for business on the same platform. Where these price comparison sites don’t work that well is actually advising you on the type of policy that is best for you or your car. Would comprehensive be cheaper and more suitable than third party fire and theft? The point is, you can’t ask the price comparison site for advice – that’s where auto brokers have the upper hand. Compare it to buying a new home, would you buy one without a survey? You could do it and then when it dives into the sea, you’ll be praying that your insurance covers it … the point is, you also shouldn’t buy insurance without talking to an expert.

Pick up the phone

The internet is a great buying and selling tool, you know my feelings about previous articles … but I suggest that if you talk to a real person in a brokerage, then you have a much better chance of getting cheaper car insurance. They can ask more questions, clarify their requirements, and if necessary, they can even delegate the fee (set the price themselves) if they really want the business. There is no substitute for human contact, just make sure you speak to at least three different brokers for a real comparison.

Do you have a good zip code?

If you live in a ZIP code where there are few theft and claims, your insurance premium will be lower than living in a place that is a known hotspot for crime. If you can afford it, move to a posh area and you’ll benefit from lower insurance premiums. It sure is not the easiest way to save on the cost of insurance …

Mileage and usage

The more miles you drive, the more likely you are to be involved in a claim. They are simple statistics. The fewer miles you cover, the less your insurance premium should cost. However, do not lie, if you exceed the indicated mileage by a distance, it could invalidate your insurance.

Married with children?

Insurers like to sell auto insurance to mortgaged married couples with children and jobs. It is very easy to check your credit and generally shows responsible behavior that suggests less risk to the insurer. That can lower your car insurance price.

Do not modify your car

We all see the bling bling cars lurking in supermarket parking lots late at night and if you like tacky neon colors and noisy tailpipes it’s not here or there, the fact is, it’s likely any type of modification increases your auto insurance premium. Modifications can attract attention, invalidate warranties, and in the case of noisy exhausts, they can also be illegal (if they exceed the noise limit). If it’s illegal, it could also invalidate your insurance. The fact is, automakers spend a lot of time developing their products to work well, and if you modify them, all is lost and your insurer will scratch its head wondering how much it should charge, and it will almost always be more. than a standard vehicle.

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