It's essential to have the right cover in place if you drive a car - but is there any way to save money on this unavoidable expense? We share our top ten tips for reducing the cost of your car insurance.
Some types of insurance are more important than others, and with many of us trying to save money any way we can, it’s tempting to take a ‘pick and choose’ approach to the cover you need.
However, if you drive car insurance is something you must have in place. Not only is it a legal requirement, it’s also essential to know you’re covered should an accident or theft happen. That said car insurance isn’t something you should simply shell out for without a second thought to how much it’s costing.
It is possible to drive down the cost of your car insurance considerably by following a few simple steps– here are our top 10.
1. Shop around
This is the first thing you should do with any type of insurance nowadays, when the internet makes it so easy to compare car insurance quotes from different providers. No longer is it necessary or financially sensible to just accept your renewal or take the first quote you’re given.
This doesn’t always mean looking for the cheapest cover, but instead finding a policy that will suit your requirements precisely, at a price that will suit your budget. It’s free to get quotes from car insurance providers so you’ve nothing to lose in comparing as many as you can until you find the right one for you.
2. Buy online
Another great thing the internet has brought to those needing to find cheap car insurance is the ability to buy online. As well as making the whole process a lot easier for you, as you can arrange your insurance from the comfort of your desktop, buying online is also preferable to your insurer – it means less paperwork and hassle for them.
For this reason many car insurers offer significant discounts just for purchasing your policy online, so next time your car is up for renewal, opt for the online route.
3. Increase your voluntary excess
If you increase the amount you are willing to pay towards a claim before your insurer pays out, this can significantly reduce your car insurance premium. For example if you agreed to pay £100 in the event of a claim instead of £50, your insurer will charge you much less for your premiums.
However this must be balanced against the fact that if an accident or theft does happen and you need to make a claim, you’ll be faced with having to pay out more than if you had opted for a lower excess. You’ll also need to take into account any additional excess some insurers apply to claims if you’re a younger driver.
4. Make your car secure
The more secure your car is, the more your insurer will see you as low-risk and therefore charge you less for insurance. So wherever possible it can really pay to make your car as safe and secure as possible. It's well worth installing an immobiliser and alarm system (preferably Thatcham-approved as not all security systems are accepted by insurers). This will lessen the risk of your car being stolen and so will reduce your insurance premium.
5. Park it safely
Continuing in the same vein, where you park your car can make a significant difference to how safe your car is and therefore how much you’re charged for insurance. If your car is usually left parked at the side of a kerb, for example, it will be more vulnerable to theft and vandalism than if it was securely locked up in your garage.
Although this is not always possible depending on where you live, if you do have the means to stow your car away in a safer place, it’s a good idea to do so – your premiums will be less and your wallet will thank you for it.
6. Cut down your mileage
Again, although this is not always a realistic option if you are required to drive long miles for whatever reason, if you cut down the amount you drive you should see a reduction in your insurance cost.
The less you drive your car, the less vulnerable it is to breaking down, accidents, and so on – so your insurer will see you as lower-risk and charge you lower premiums. Make sure to declare on your policy exactly how much you do drive, and be careful not to over-estimate (although it’s advisable not to under-estimate either – always be truthful).
7. Name another driver
This will particularly apply if you are a younger driver. Insurance premiums can be especially high if you are a young, inexperienced driver, even higher if you happen to be male on top of that (risk statistics show that young male drivers are the demographic most likely to make the more expensive claims). So to help deal with this cost, name another driver on your policy.
This could be a parent who also uses your car, or another older driver. Having a more experienced person named on your insurance will make you a lower-risk customer and so will reduce your premiums. Also, if you drive an additional car, make sure to declare this on your policy – spreading your risk across more than one vehicle can reduce the cost of cover.
However it’s not advisable to get your parent insured as the main driver to save money if you’re a young driver, because if your insurer discovers that you are in fact the main driver it’s very likely they won’t pay out in the event of a claim.
8. Seek out a low-band car
If you are looking to buy a new car, it’s certainly worth bearing in mind how much it’s going to cost you to insure. Some cars are classified in lower insurance bands than others, so when choosing your new set of wheels it may be a good idea to enquire after its band before you buy.
Your car dealer or vendor should be able to tell you how costly your car is going to be to insure, so make sure you look into this and go for a car that won’t cost the earth to cover.
9. Get qualified
Of course your passed driving test proves you are qualified to drive, but there are additional tests available that will make you even more of an expert on the roads. The more qualified you are to drive, the more your insurer will see you as a trustworthy driver and will cut your premiums accordingly.
So if you want to become a better, safer driver and cut the cost of your car insurance in the meantime, it may be worth taking an advanced driving test such as the Pass Plus course – this can be especially beneficial for younger drivers.
10. Steer clear of modifications to your vehicle
If you want to bring the cost of your policy down further, avoid making modifications to your car. As well as making it a more obvious and attractive target to thieves and vandals, modified cars are also seen as more likely to be involved in an accident.
Source
Sunday, November 15, 2009
Wednesday, October 28, 2009
Save More Green After Going Green with Cheap Car Insurance Rates
Chicago, IL (Vocus/PRWEB ) August 1, 2009 -– Now that the Cash for Clunkers bill, officially known as the Car Allowance Rebate System (CARS), is up and running, consumers can also find cheaper car insurance premiums than with their older vehicle. CheapCarInsurance.org gives the latest details on CARS and explains ways consumers can find cheap car insurance rates.
CARS, signed into law by President Obama on June 24, is the 2009 program that is aimed at encouraging consumers to trade in their older, less fuel-efficient vehicles for one that is more fuel efficient by providing a $3,500 or $4,500 credit. Although older vehicles are generally less expensive to insure because of their lesser value, consumers can find cheaper car insurance premiums through additional discounts.
Many insurance agents will offer up to a 10% discount or even cheaper car insurance premiums for hybrid owners. This additional discount is due to the way insurance companies view hybrid drivers. Insurance companies base their rates on risk. Statistically, hybrid owners fall into the “preferred insured category,” which means they will receive the cheapest car insurance quotes.
Hybrid owners fall into this category because they are typically more mature drivers who are less likely to be in an accident and file a claim. Statistically, hybrid owners are married men and women between the ages of 41 and 60 who are financially stable and responsible citizens. This formula equates to less risk for the insurance company and the cheapest car insurance quotes for the driver.
In addition to going green and saving some green by purchasing a hybrid, consumers can also take a few additional step to be more eco-friendly and save on their car insurance premiums. By switching to paperless billing, people can cut down on wasted paper use, which saves trees and the insurer money. Generally, the insurance company will pass these savings on by offering additional discounts for people who pay online or have their payments automatically withdrawn. Moreover, carpooling will cut down on an individual’s carbon footprint and they may find cheaper car insurance premiums as they cut down on their personal mileage.
Source
CARS, signed into law by President Obama on June 24, is the 2009 program that is aimed at encouraging consumers to trade in their older, less fuel-efficient vehicles for one that is more fuel efficient by providing a $3,500 or $4,500 credit. Although older vehicles are generally less expensive to insure because of their lesser value, consumers can find cheaper car insurance premiums through additional discounts.
Many insurance agents will offer up to a 10% discount or even cheaper car insurance premiums for hybrid owners. This additional discount is due to the way insurance companies view hybrid drivers. Insurance companies base their rates on risk. Statistically, hybrid owners fall into the “preferred insured category,” which means they will receive the cheapest car insurance quotes.
Hybrid owners fall into this category because they are typically more mature drivers who are less likely to be in an accident and file a claim. Statistically, hybrid owners are married men and women between the ages of 41 and 60 who are financially stable and responsible citizens. This formula equates to less risk for the insurance company and the cheapest car insurance quotes for the driver.
In addition to going green and saving some green by purchasing a hybrid, consumers can also take a few additional step to be more eco-friendly and save on their car insurance premiums. By switching to paperless billing, people can cut down on wasted paper use, which saves trees and the insurer money. Generally, the insurance company will pass these savings on by offering additional discounts for people who pay online or have their payments automatically withdrawn. Moreover, carpooling will cut down on an individual’s carbon footprint and they may find cheaper car insurance premiums as they cut down on their personal mileage.
Source
Thursday, October 15, 2009
Motorists now spend longer looking for quotes
The average UK motorist spends two hours searching online for a car insurance quote, according to a survey by Swinton, the UK's leading high street retailer of car insurance.
The poll of 1,000 Swinton's insurance customers found that motorists are spending more time online looking for cheap car insurance, than they were doing this time last year. In May 2008 drivers spent on average one and a half hours to find an insurance policy.
Over recent years the length of time spent by motorists searching for a car insurance quote has dropped significantly, each year reducing by between five and fifteen minutes. This is the first time infive years that has seen this trend change, and Swinton is attributing the turn around on financial pressures caused by the recession.
Steve Chelton, Insurer Development Manager, for Swinton said:
"The increased use and availability of the internet has had a massive impact on the car insurance industry."
Source
The poll of 1,000 Swinton's insurance customers found that motorists are spending more time online looking for cheap car insurance, than they were doing this time last year. In May 2008 drivers spent on average one and a half hours to find an insurance policy.
Over recent years the length of time spent by motorists searching for a car insurance quote has dropped significantly, each year reducing by between five and fifteen minutes. This is the first time infive years that has seen this trend change, and Swinton is attributing the turn around on financial pressures caused by the recession.
Steve Chelton, Insurer Development Manager, for Swinton said:
"The increased use and availability of the internet has had a massive impact on the car insurance industry."
Source
Monday, September 28, 2009
What do car insurance comparison websites offer?
Car insurance comparison websites seek to quickly and easily compare car insurance quotes for you, helping you get the best cover for your needs at the best price.
Car insurance comparison sites have really transformed the buying process for car insurance online.
They were established at a time when the number of online car insurance providers was rapidly growing but to compare quotes you had to enter all your details and answer questions on each site.
Taking many minutes per quote meant this was very time consuming and not a very satisfactory way of working.
So car insurance comparison sites were established – enter your details once and the comparison site then collates quotes from a range of different companies.
Try for yourself, compare car insurance quotes, you’ll see just how easy it is.
The numerous quotes are presented to you with differing information, from the price, to key aspects of the policy offered.
Whilst many people choose their car insurance based on price, it’s important to consider other policy requirements, such as a need for a courtesy car, the level of excess you want etc.
Our article on ‘Questions to ask as you choose your car insurance‘, might help with assessing your policy requirements.
Some comparison sites now focus more on the policy requirements and being able to show quotes based on features that are important for you, not just on the cheapest price.
Since the first site was established, some 15 years ago, many more have entered. Some of the main sites are:
beatthatQuote.com
Comparethemarket.com
Confused.com
Gocompare.com
Moneysupermarket.com
uSwitch.com
Tescocompare.com
None cover the entire car insurance market and as you would expect some are better than others.
In some ways this proliferation of comparison sites starts to negate their value in that in order to get the best car insurance you really need to visit multiple sites.
Comparison sites receive commission from the insurance company or broker you buy car insurance from. This is not generally made clear on the sites.
Not all car insurance providers participate in comparison sites, Direct Line for example don’t. This means to get a quote from these you’ll need to use their site directly.
Recognising that there hasn’t been any real control of comparison websites a Comparison Consortium has been established.
Many of the main comparison site companies are involved in this.
beatthatQuote.com this week became the first website to get accreditation for adhering to the Comparison Consortium’s Code of Practice.
This code has been established to ensure greater clarity to customers and sites adhering to it have been confirmed to operate at the highest industry standards, giving consumers clear and transparent information.
Source
Car insurance comparison sites have really transformed the buying process for car insurance online.
They were established at a time when the number of online car insurance providers was rapidly growing but to compare quotes you had to enter all your details and answer questions on each site.
Taking many minutes per quote meant this was very time consuming and not a very satisfactory way of working.
So car insurance comparison sites were established – enter your details once and the comparison site then collates quotes from a range of different companies.
Try for yourself, compare car insurance quotes, you’ll see just how easy it is.
The numerous quotes are presented to you with differing information, from the price, to key aspects of the policy offered.
Whilst many people choose their car insurance based on price, it’s important to consider other policy requirements, such as a need for a courtesy car, the level of excess you want etc.
Our article on ‘Questions to ask as you choose your car insurance‘, might help with assessing your policy requirements.
Some comparison sites now focus more on the policy requirements and being able to show quotes based on features that are important for you, not just on the cheapest price.
Since the first site was established, some 15 years ago, many more have entered. Some of the main sites are:
beatthatQuote.com
Comparethemarket.com
Confused.com
Gocompare.com
Moneysupermarket.com
uSwitch.com
Tescocompare.com
None cover the entire car insurance market and as you would expect some are better than others.
In some ways this proliferation of comparison sites starts to negate their value in that in order to get the best car insurance you really need to visit multiple sites.
Comparison sites receive commission from the insurance company or broker you buy car insurance from. This is not generally made clear on the sites.
Not all car insurance providers participate in comparison sites, Direct Line for example don’t. This means to get a quote from these you’ll need to use their site directly.
Recognising that there hasn’t been any real control of comparison websites a Comparison Consortium has been established.
Many of the main comparison site companies are involved in this.
beatthatQuote.com this week became the first website to get accreditation for adhering to the Comparison Consortium’s Code of Practice.
This code has been established to ensure greater clarity to customers and sites adhering to it have been confirmed to operate at the highest industry standards, giving consumers clear and transparent information.
Source
Tuesday, September 15, 2009
Going to university? How to get the best car insurance quotes
With over 500,000 students getting their A-level results today; many will be venturing off to college or university and probably leaving home for the first time. Many will also be looking to take their car with them, unaware that as they move into student accommodation or halls of residence their car insurance premiums could increase.
Moneyextra.com has put together a list of the top 5 tips for students to follow to help fight any increase in premiums that may arise as a result of leaving home to study:
1. Consider how many miles you will be driving. When buying your car insurance the number of miles driven per year will have a major effect on your premium, so be accurate and make sure you don’t over estimate. Although be honest, if you “lie” to your insurer you could potentially invalidate a claim.
2. Look at where it is parked overnight. If you’re lucky enough to have off road parking or even a garage at your accommodation then use it as this will help to reduce your premium. If the vehicle is kept on the road, look to add some extra security such as alarms and immobilisers (if not already fitted) and steering locks. You may have no option but to park on the road, however you can still help reduce your annual costs by adding extra security.
3. If you are the main driver or registered keeper of the car, don’t insure it in your parents name and put yourself down as a named driver. As well as being false economy as you are just delaying the building up of your no-claims discount, more importantly this is illegal and is known as “fronting” and if you were to be in an accident it could mean the claim is not paid. Worse still, if it’s proven you’re guilty of fronting you are open to prosecution which is likely to be around 3-6 points on your licence and a hefty fine.
4. If you’re a new driver or under 25 consider taking the Pass Plus test. This will consist of some additional lessons which see’s you experience motorways, night driving and towns to name a few different situations. By completing the Pass Plus test you can then get discounts with various insurers of anything from 5% of your car insurance premium upwards.
5. Shop around for your car insurance policy and consider paying a higher voluntary excess in the event of a claim. Although you pay out more if you claim, your premium can reduce quite considerably if you agree to share more of the risk with your car insurance company
Younger drivers may want to also consider the type of car they buy. The GTi badge and the spoilers may look attractive, but the insurance premiums for younger drivers of such cars aren’t quite as appealing. By quickly looking at the insurance group applicable to the vehicle type, and avoiding anything that has “Sport” or “GT” in its name.
Whether you’re going to university, or starting your first step onto the career ladder this autumn, younger drivers can make some significant savings by shopping around for their car insurance and following our tips to get cheaper premiums.
Source
Moneyextra.com has put together a list of the top 5 tips for students to follow to help fight any increase in premiums that may arise as a result of leaving home to study:
1. Consider how many miles you will be driving. When buying your car insurance the number of miles driven per year will have a major effect on your premium, so be accurate and make sure you don’t over estimate. Although be honest, if you “lie” to your insurer you could potentially invalidate a claim.
2. Look at where it is parked overnight. If you’re lucky enough to have off road parking or even a garage at your accommodation then use it as this will help to reduce your premium. If the vehicle is kept on the road, look to add some extra security such as alarms and immobilisers (if not already fitted) and steering locks. You may have no option but to park on the road, however you can still help reduce your annual costs by adding extra security.
3. If you are the main driver or registered keeper of the car, don’t insure it in your parents name and put yourself down as a named driver. As well as being false economy as you are just delaying the building up of your no-claims discount, more importantly this is illegal and is known as “fronting” and if you were to be in an accident it could mean the claim is not paid. Worse still, if it’s proven you’re guilty of fronting you are open to prosecution which is likely to be around 3-6 points on your licence and a hefty fine.
4. If you’re a new driver or under 25 consider taking the Pass Plus test. This will consist of some additional lessons which see’s you experience motorways, night driving and towns to name a few different situations. By completing the Pass Plus test you can then get discounts with various insurers of anything from 5% of your car insurance premium upwards.
5. Shop around for your car insurance policy and consider paying a higher voluntary excess in the event of a claim. Although you pay out more if you claim, your premium can reduce quite considerably if you agree to share more of the risk with your car insurance company
Younger drivers may want to also consider the type of car they buy. The GTi badge and the spoilers may look attractive, but the insurance premiums for younger drivers of such cars aren’t quite as appealing. By quickly looking at the insurance group applicable to the vehicle type, and avoiding anything that has “Sport” or “GT” in its name.
Whether you’re going to university, or starting your first step onto the career ladder this autumn, younger drivers can make some significant savings by shopping around for their car insurance and following our tips to get cheaper premiums.
Source
Friday, August 28, 2009
Finding the Most Inexpensive Car Insurance Quote
Are you thinking of getting car insurance? Are you looking for cheaper ones with the same terms as other more expensive ones? Do you know that it is possible to find cheap car insurance quotes? Have you ever thought of the fact that it is possible your neighbour is getting more 'bang for his insurance buck' than you are for a far lesser rate than you are currently paying? If you answered in the affirmative to one of the questions asked above, then you need to read the following tips as they will put you on the path to getting cheaper or inexpensive car insurance quote.
1. Look Around Before making your Choice
Rushing to get a car insurance is not the best idea particularly when you have not done your homework. To get the best bargain, take a look around. Call up as many car insurance companies as possible. The norm is to call three. But in your best interest, call at least 5.
This will give you a wide array of choices to pick from. To do this effectively, you can check the business directory or visit the state's insurance department. All insurance companies often have to register with them before they can become operational. The department can provide you with a list of the many companies. If you live in states like California or New Jersey, car insurance is often more expensive. When investigating the company, look for details such as popularity and capital base. This will give you an idea of their financial health.
2. Make a comparison on different quotes before buying a vehicle
The kinds of cars you drive can often be responsible for higher insurance quotes. For example, new car editions, sports cars, and model cars are often easily stolen and therefore often attract higher insurance quotes. So, visit any insurance company and get their different quotes on different cars and then go buy your car. This will at least help you know what you will get when you eventually go looking for the quotes later on.
3. Accessories and Anti-theft devices
If your car has more accessories that make it safer such as air bags, anti-theft devices and car alarms, gprs tracking system and other accessories, this can positively affect the insurance quotes as insurance companies are ;likely to look more favourable on any of these.
4. The Age of the car
It is more expensive insuring newer cars than the older ones. If you do not really need a new car, why bother buying one. Just a thought anyways. But if you insist on buying one, know that new cars will cost you more. You could easily look up the highest value your car will attract if it is wrecked in the Kelley's Blue Book. This will ensure you know how much your car's worth by the insurer's valuation.
5. Be sure to consider discounts
Most insurance companies often offer discounts. Ask for it from them. Some companies offer discounts for good driving records, low mileage etc.
Source
1. Look Around Before making your Choice
Rushing to get a car insurance is not the best idea particularly when you have not done your homework. To get the best bargain, take a look around. Call up as many car insurance companies as possible. The norm is to call three. But in your best interest, call at least 5.
This will give you a wide array of choices to pick from. To do this effectively, you can check the business directory or visit the state's insurance department. All insurance companies often have to register with them before they can become operational. The department can provide you with a list of the many companies. If you live in states like California or New Jersey, car insurance is often more expensive. When investigating the company, look for details such as popularity and capital base. This will give you an idea of their financial health.
2. Make a comparison on different quotes before buying a vehicle
The kinds of cars you drive can often be responsible for higher insurance quotes. For example, new car editions, sports cars, and model cars are often easily stolen and therefore often attract higher insurance quotes. So, visit any insurance company and get their different quotes on different cars and then go buy your car. This will at least help you know what you will get when you eventually go looking for the quotes later on.
3. Accessories and Anti-theft devices
If your car has more accessories that make it safer such as air bags, anti-theft devices and car alarms, gprs tracking system and other accessories, this can positively affect the insurance quotes as insurance companies are ;likely to look more favourable on any of these.
4. The Age of the car
It is more expensive insuring newer cars than the older ones. If you do not really need a new car, why bother buying one. Just a thought anyways. But if you insist on buying one, know that new cars will cost you more. You could easily look up the highest value your car will attract if it is wrecked in the Kelley's Blue Book. This will ensure you know how much your car's worth by the insurer's valuation.
5. Be sure to consider discounts
Most insurance companies often offer discounts. Ask for it from them. Some companies offer discounts for good driving records, low mileage etc.
Source
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