Type of Cover
The 3 main types of car insurance cover are third party, third party, fire and theft and fully comprehensive. Further details of types of cover.
Voluntary Excess
Significant savings on your car insurance premium can be made if you opt for paying a larger excess (the amount you have to paytowards a claim). All policies carry a minimum level of excess which everybody has to pay but you can increase this amount to lower your insurance cost. Remember you will have a larger amount to pay yourself if you do make a claim.
No Claims Discount
Each year that you do not make a claim on your insurance is good news. This means that future insurance premiums will be reduced as your driving history improves and shows the insurance company that you are less of a risk. No claims discounts can range from between 30% and 70%.
No Claims Discount Protection
For a small additional cost drivers can protect their no claims bonus. This allows you a certain number of claims before your no claims discount is affected.
Vehicle Security
Most new cars are supplied with security devices such as an alarm or immobiliser which can reduce your premium. If you have an older car it is worth considering installing these.
Overnight Parking
Most insurance companies give you a discount if your car is parked overnight in a garage or driveway instead of in the street.
Insurance Groups
UK insurance companies have a car group rating system which enables them to calculate the amount of risk for each vehicle. The higher the group rating the more you will have to pay for insurance.
Advanced Drivers
Additional driver training such as the advanced driving test may help you obtain a discount.
Young Drivers
If you are a young driver you are likely to pay high premiums for your car insurance until you can prove to the company that you are less of a risk. Before you have any no claims discount on your policy one way of minimising your cost is to drive a lower risk vehicle.
Over 50's
There are some car insurance providers that specialise in the over 50's market who are rewarded by lower costs for proving their driving experience.
Shop Around
You should shop around for car insurance every year and change company if it would be to your advantage. Many companies offer new customers the best deals and then increase their premiums in later years.
Payment Methods
It is best to pay your car insurance in one lump sum if possible. Paying by instalments can increas your cost.
Buying Online
It is best to buy your car insurance online as most companies offer a discount when purchaing online because their overheads are lower. Discounts can range from between 5% and 20%.
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