Although car insurance is compulsory, it's not necessary to pay a penny more than you have to.
A few simple steps combined with some time surfing for low cost car insurance really can save you hundreds.
STEP 1 - EXCESS
The easiest way to cut your insurance premiums is to accept a higher voluntary excess. An insurer's standard excess may be £150; but if you meet the first £250 of any claim, you'll see a reduction in your premium. This is because you're taking on more of the risk so you get a discount. But it's a gamble, be aware that you might have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.
STEP 2 - SECURITY
Fitting security devices can also result in cheaper car insurance premiums. All major insurers insist on Thatcham rated security equipment, usually a minimum of an alarm. If you live in a high-risk area for car crime, it makes sense to fit extra security. It saves you money when your insurance renewal is due and gives you extra peace of mind.
If you have a garage, clear out the clutter and use it. A car parked in a garage reduces the risk of damage and theft which will be reflected in your premiums.
STEP 3 - ANNUAL MILEAGE
If your annual mileage is, 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions. Many insurers won't offer this option as standard but will agree a discount if you ask.
STEP 4 - NAMED DRIVERS
Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. Adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is female!
STEP 5 - SHOP AROUND FOR GOOD RATES
The biggest potential savings come from shopping around. This has been made much easier with the explosion of the internet and price comparison sites. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s). Start off using at least two car insurance quote comparison sites like Moneysupermarket, Compare the Market, Confused and Tesco Compare, take their best quotes and go direct to the cheapest car insurance companies for more specific quotations.
PLEASE NOTE: The guidance published in this article is for information only and does not constitute financial advice or a recommendation of any particular car insurance product or company. If you are in any doubt please consult an independent insurance adviser. A database of advisers in your area is available at www.unbiased.co.uk
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