Motor Insurance - Driving a Hard Bargain

A familiar old topic of discussion, however one which is sensible to reiterate to our readers.

Lowering your car insurance premium (without reducing the level of cover) should be the goal of every motorist. There are three factors which make a big difference to the price you pay for your motor policy:

1. Age
2. Gender
3. Your address.

Unfortunately, besides moving house (and postcode area) there is nothing you or anybody else can change about the above. So, what we need to focus on are the factors insurers use when determining your premium - that we can do something about.

1. Shop around! Approximately three quarters of all drivers will renew with their existing insurer. No, no, no! By all means if you are happy with your current insurer - stay with them - but only after considering quotes (with like-for-like cover) from othe providers. It could save you 25% over your current premium!

2. If you haven’t previously considered buying your new policy on the internet, then now is the time to take the plunge. It could mean savings of up to 15%.

3. Choose your new vehicle with care, with one eye on the car insurance group the car will fall into. Each group is assigned a number from 1 to 20, enabling each vehicle model to be accurately banded with cars of similar characteristics. The insurance group number rises according to relevant engine size, and performance of the car. The higher the insurance group the more relatively expensive it is likely to be to insure the vehicle!

4. Where do you leave your vehicle overnight? Garaging your car or parking off-street could cut your premium by up to 10%. Insurers will also take into conisderation if you fit a security device such as a steering lock or immobiliser.

5. If your car is of low value consider taking out third party fire and theft insurance as against fully comprehensive cover.

6. Insurance companies spend millions of pounds every year on expensive television, newspaper and glossy magazine advertising. Be wary of extravagant claims for a lower premium and generally sceptical over specialist insurers, who claim to offer the best deal just because they serve only a particular niche of the market.

7. Consider the savings and cover levels offered by policies such as Norwich Union Simple Cover, or Pay As You Drive car insurance.

8. Young drivers are traditionally hammered when insuring their vehicle. Unfortunately insurers are unlikely to devise a policy which significantly undercuts what is already available. One option if you are in your teens or early twenties could be to piggyback on your parents’ motor insurance.

9. Spreading the cost of your policy using direct debit over 10/12 months can seem like a sensible option. However, most insurance companies will charge you extra for the privilege. Where possible always pay your premium in full.

10. HAGGLE for the best price - If you don’t ask you won’t get!