How to Cut the Costs of Car Insurance
Tips That May Help Drivers Get Cheap Auto Insurance
Aug 29, 2009
Car insurance policies may all be designed to offer the same basic kinds of protection to drivers and vehicles but their costs can vary significantly. The charges made here may well depend on the driver, their track record, the vehicle and the insurance company itself. Keeping costs low, whilst still getting good coverage, can save considerable sums. So, how can drivers get the benefits of discount car insurance?
Saving Money on Car Insurance Costs
In basic terms insurers assess the costs of a car insurance policy based on certain factors:
- The driver(s) of the vehicle- how old they are, what their driving record is like and whether they have had any accidents or driving problems.
- The vehicle itself- what kind of model is being insured, how old it is and how much it is worth.
- The likelihood of claims being made - how the car is stored/protected and how it is used.
Insuring a driver and a car is all about cost and risk to the insurer. If a driver can take steps to potentially minimise these potential costs and to look like less of a risk then they may find that their premium costs are lowered. There are various ways to achieve this including:
- Choosing a lower spec vehicle- a high cost, high maintenance car will cost more to insure than a standard model. Choosing smaller engined cars, for example, may work out cheaper than insuring high performance models.
- Driving less- many insurers will cut car insurance premium costs for drivers who don't use their cars that frequently.
- Storing the car safely- drivers that can prove that they store their cars in a garage on on their drive will generally be given lower premiums than those that have to park on the street.
- Keeping a clean record- a driver who has a clean sheet where accidents and incidents are concerned will build up a good no-claims bonus. The more years of no-claims a driver has, the cheaper a policy may be.
- Protecting the car- having a good security system and a GPS tracking device fitted into the car can make it harder to steal and easier to recover which can cut costs.
- Limiting the number of named drivers- insuring a car for one driver will be cheaper than insuring it for multiple drivers. Adding a young and inexperienced driver to a policy could see premium costs go through the roof.
- Taking courses and training- there are a variety of advanced driving courses that drivers can take on a voluntary basis (e.g., the Pass Plus scheme). Many insurers will give discounts to drivers that have taken an accredited course to improve their driving skills.
- Taking a higher excess- all policies will come with an excess (the amount the driver has to pay before the insurer kicks in). Taking a higher excess could cut costs for the insurer and they may offer lower premiums in return.
- Shopping around- using a car insurance supermarket to find and compare a variety of quotes can save money.
Most drivers have the ability to get some form of discount car insurance. Many actually pay more than they need to for a car insurance policy simply because they don't realise that savings can be made in this way. Given these savings it may well be worth thinking about what can be done to cut costs here.
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