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5 Tips For Controlling Your Car Insurance Premiums
By admin | December 25, 2007
We all want the best quality car insurance for the lowest price. But with so much choice and a lack of understanding about how motor insurance is priced, most of us either take the path of least resistance and renew with our current insurer or just end up paying too much and hoping for the best.
Well, if you’re looking to get lowest premiums possible - without sacrificing the level of cover you want - there are some little-known tricks you can use. Ask yourself these five questions before you get any quotes…
- How much do you drive?
One of the factors that affects your insurance premium is the amount of driving that you do. The more you drive, the more you’ll pay. Keep in mind though, that the premium rises kick in at specific levels, so pay attention to the numbers that you enter when applying for car insurance online. Where it asks you to estimate how many miles you drive in a year, round DOWN from the nearest thousand - 9,900 instead of 10,000, for example. Chances are that you’ll shave a bit off your premium. - Where do you buy your insurance?
Most major insurers will discount your premium by as much as 10% if you buy your insurance from them online. It saves them money and time, after all, so they can pass the savings on to you. In addition, if you already pay for home insurance or life insurance, your current insurer may give you a discount for keeping it all in the family, so to speak. - How do you pay for your car insurance?
Most people know that if you pay for your annual premium all in one go, you’ll save money. When you choose to pay in monthly installments, some insurers charge you interest. Did you know, though, that you can also save money if you agree to pay in installments by direct debit? Check with your insurer to find out if they offer a discount for agreeing to pay your car insurance by direct debit or automatic credit card charge each month. It can work out nearly as cheap as paying it all up front. - Am I special?
The newest trend in car insurance is in ’specialty’ insurance policies and companies that cater to specific demographics. Insurance companies base most of their pricing decisions on statistics. Do you belong to a group that statistically has fewer accidents than the general public? Do you belong to an organization, club or group that may have worked out a special deal with an insurance company? You may get lower premiums with some companies because you’re a woman, or because you’re over 50, or because you save with a particular bank. So, think about which companies you already buy from and use this to your advantage. - Can you improve your driving skills?
Even if you’ve been driving for decades, taking an advanced driving course can lower your premiums for years to come. Anything you do that reduces the risk to the insurer will lower your premiums, so check with your insurer to find out how much you can save if you enroll in and complete a course in advanced driving.
There are other common sense suggestions that can help you avoid higher insurance charges as well. Whenever possible, do business directly with the insurance company instead of going through a broker. When applying for insurance online, decide what type of cover you want and whether a host of extra’s is of any value to you. Some policies provide basic comprehensive cover at low price and strip out all of the options that many drivers don’t use. Shop around and compare policies and premiums to be sure you’re getting the best price. If you follow these tips and tricks, you’ll find yourself paying considerably less for your car insurance at renewal time.
For more insurance tips visit UK Insurance Index where you’ll also find customer reviews and links to the most popular insurers such as Norwich Union Simple Cover and Swiftcover.com. You can also share your insurance tips and experiences at the Squidoo buying insurance online lens.
Tags: auto, Car Insurance, motor
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Topics: Insurance |