Insurance: a Pain in the Exhaust??!
By Sultana Maya
How many of you love your cars? – Raise your hands. Hmm I’m guessing an array of hands will be thrown into the air as this is being read. Now raise your hands if you love paying car insurance. Yep there it goes, the array of hands has descended quicker then I can say “confused.com”. Why? Because car insurance is a pain that’s why!
Sure it’s the law to have car insurance and it protects us from losing money during potential accidents, but nevertheless, for us students insurance has proven to be more than excessive! But don’t fear. With just a few minor adjustments to your method, you can save hundreds of pounds on your annual premium...
Security Devices
Fitting one or more security devices to your vehicle can result in cheaper car insurance premiums. All major insurers insist on Thatcham approved security equipment, and expect an alarm at the minimum. However other security measures such as immobilisers and trackers being fitted to your vehicle will reduce your premium because the insurers know your car has a lower risk of being broken into or stolen. The prices of these depend on your vehicle make and mode; however it will decrease your premium for years to come so it’s a very worthwhile investment!
Excess
A very simple way to cut your insurance premiums is to accept a higher voluntary excess. So for example if an insurer’s compulsory excess amount is £250, and you add a voluntary amount of £100, (making your excess amount £350), your premium will drop in price. This is because you're taking on more of the risk so you get a discount. Though this is a simple method, be aware that it is a bit of a gamble because if you do need to claim in the future you will be paying a higher excess. For those of you who are careful drivers and live in safe neighbourhoods and are therefore less at risk from third party damage, this is a great way to reduce your premium!
Annual Mileage
For those of us who do not spend more time driving around in our cars than we do at home (that’s not many of us lets be honest!)... You’re in luck! If your annual mileage is 5,000 miles or less, most insurers lower the price of the premium, because they know you are not driving a heck of a lot. If you don’t notice prices going down even though you are entering a low annual mileage, give the insurers a call and ask for a lower premium. Some companies don’t offer it right away but if you ask they will accept!
Named Drivers
Now this one can work either to your benefit or disadvantage. Adding a named driver to your policy can either increase or decrease your premium depending on the named driver’s age, gender, past history and also the actual car you are insuring. Having a new or young named driver (under 25 years) will increase your premium however having someone older and experienced in most cases reduces premiums, especially if they have a no claims bonus certificate. Remember only add named drivers if they will actually be driving the car!
Shop Around Before Buying!
Perhaps the most important tip – don’t just stick to your renewal quote! Every year make sure you shop around before committing to an insurer because you could be missing out on a cheaper deal. The explosion of price comparison sites which I’m sure you’re all aware of is a great help when shopping around – work the system!
