How to Reduce Your Car Insurance Premium
Paying high car insurance premiums can be very frustrating, and especially if you consider yourself to be a safe driver; the rate of insurance premiums and related policies can be shaped by wider trend and accident claims, and by long standing assumptions that young drivers are a higher risk than older drivers on the road – while the UK government are trying to impose more safe driving courses to reduce insurance premiums, it’s still worth considering some methods by which you can try to reduce how much you pay for your car insurance in the future.
Consider Black Box Insurance
One way to lower your premiums is to use black box, or telemetric insurance; this involves having a device fitted to your car that records your driving performance, and creates a record of your braking, speed, and route, which insurance companies can then use to work out a more accurate premium for you.
Multi Car Insurance
This can be a good idea if you’re part of a family that has several cars, or if you live with other people that all have cars. Having a multi car insurance policy can mean that you get discounts on individual premiums, while still being able to protect your own no claims discounts.
Accept a Higher Excess
You can reduce your car insurance premium by agreeing to pay a higher excess in the event of a claim; while this is a bit of a gamble, it can work out in terms of the ratio between your claim and the excess you choose.
Park in a Garage
If you can, park your car overnight, as this can make less of a risk to insurers. A private garage is best, but a public garage with security can also be a good idea.
Get Extra Security Devices
Adding security devices to your car can reduce your premiums if you can show a commitment to reducing the risk of theft or damage. Immobilisers and a more advanced car alarm can be particularly useful, as can a GPS tracker for your car being installed on your smartphone or laptop.
Set Mileage Limits on Your Driving
It’s possible to agree a set mileage limit with your insurance company; this can be a good idea if you only drive your car over short distances, which might include going to and from work every day.
Improve Your Credit Score
One reason for insurers hitting you with a high premium might be that you have a low credit score, which can be caused by past debts. Try to pay off any existing debts, and reduce your spending or applications on credit cards. Getting on the electoral register can also make you appear more reliable to different credit agencies.
Get a Cheaper Car
While this may not particularly be what you want to hear, cars with smaller engines, better fuel efficiency, and less performance features, are preferred by insurance companies compared to sports cars.
Cut Any Unnecessary Extras
Inspect your policy in detail, and see whether you’ve included any extras that you don’t actually need, or no longer use; a complementary car, or free breakdown servicing, might be something that you are able to drop and lower your premiums.
Compare the Market
Always look at as many different insurance providers as you can, and particularly check for any specialist car insurers, which can be invaluable if you’re having trouble getting decent premiums, or insurance at all, from other companies.
Author Bio
Peter Jackson has spent a lot of time analyzing car insurance premiums, and with 15 years experience within the financial sector his knowledge of car insurance operation is second to none. Currently operating outside of the UK, Peter resides in Hong Kong providing financial advice to SMEs and sole traders. If you’re looking to obtain car insurance HK Direct Asia come highly recommended.
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Category: Car Insurance
