Monday, December 12, 2011

How To Keep Your Car Insurance Cost Down

Owning and maintaining a car is expensive isn’t it? There’s the ever increasing cost of fuel, tax, car maintenance and even the cost of inner city driving with parking and congestion charges. Not only that but you also have to pay car insurance, which if left un-researched can also cost you a lot.

Whilst there isn’t a lot you can do about the rising cost of fuel or the amount you have to pay on car tax, there are many ways to ensure that the cost of your car insurance is kept down. It’s an easy trap to fall into – you research a few car insurance companies, get some quotes and go with the cheapest – you end up staying with the same insurer, renewing each year and thinking nothing of it.

It becomes easier and easier to just stay with the same provider doesn’t it? However think back to the effort you put in finding your insurer for the first time, it paid dividends then, so why not do the same every year? This is a sure fire way to keep your car insurance down.

No Claims Bonus

The most obvious way to lower your premiums is to build up a sizeable no claims bonus – insurance companies will reward drivers who have spent years driving without claiming a penny. This takes time and careful driving and you need to build up trust with your insurance provider. Therefore for new inexperienced drivers, this isn’t always an option, but at the very least it’s a good long term goal to ensure that you don’t pay through the roof.

Buy Online

The first port of call for any new comer to car insurance is to look online. Even for those who are looking to renew their insurance policy, the internet provides a rich source of insurance websites and price comparison websites. The money that you can save from booking online is significant, with some offering a 10% discount for first time customers. Insurers can offer lower premiums online because of the associated reduction in costs and the sheer amount of competitors vying for your custom.

Know What You Need

Go through your policy details and make sure that you’re ruthless in what you need and what you don’t need. Any additional extras, such as a breakdown service when you may already have this covered need to be taken off the policy. You may want to call the insurance provider just to clarify a few details such as mileage, use of vehicle, driving experience and where the car is kept. Be honest, as any untruths could invalidate your claim and cost you more in the long run.

Ensure Protection

When applying for a car insurance policy, you will be asked certain questions over the safety or protection of the vehicle, such as “where is the car kept overnight?” or “Is the car alarmed?” Now as mentioned, you need to be honest in your answers, so if the car isn’t alarmed and you don’t keep it in the garage then you’ll need to state this. However it won’t hurt to ensure that your car is a lot safer and protected over night – this will show the insurer that your car is at less risk of being broken into or stolen.

Type of Car

For any new driver, especially those under the age of 25, the cost of car insurance can be quite frightening. However the cost is not only calculated by the risk you pose, but also the risk your car posses. Therefore, if you have a powerful brand new car, then it is likely to be placed in a high insurance bracket. If you purchase a car that has a relatively small engine size, and is more safety conscious than speed or style conscious, then this can dramatically reduce your insurance premium.

By: Vincent A Rogers
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