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10 Ways To Lower
Your Car Insurance |
by:
Pete Lance |
Nowadays, car
insurance is really expensive. A typical insurance policy can
cost a few hundred pounds to over a thousand pounds a year. And
the insurance rates you pay are hugely dependent on the insurance
company or agent, your age, your car type, your driving record,
and even the area you reside in!
You should never go without car insurance though, despite the
costs as it is a legal requirement in the UK.
So, understanding car insurance can actually help you to decide
on a suitable insurance policy that won't vacuum clean your wallet!
Here, we have gathered 10 of the best tips for lowering your car
insurance.
Always compare insurance policies, it is definitely worthwhile
to shop around. Checking consumer guides and asking insurance
agents can pay off. You can easily find out the price range for
your insurance policy, as well as discover the lowest prices in
town.
However, you should not be shopping based on price alone. The
insurance company should provide good service at the best price.
Excellent personal service is available as well, and they provide
added conveniences, although they cost a fair bit more. Ask the
company how you can lower your costs, and also check their financial
ratings. The rule of thumb is always to get three price quotes
from three different companies, and pick the one with the best
value.
It can also be a good idea to increase your polict excess. When
you file a claim, the excess is the amount you pay before the
insurance company pays for the rest of the damage. A higher excess
on comprehensive coverage can lead to a much lower premium. For
example, increasing your deductible from £200 to £400
can reduce your premiums by a significant amount. However, you
must ensure that you have the financial resources to handle the
largest excess when the time comes.
Remove certain types of coverage and extras from your policy.
However, you do not want to be underinsured if you're in an accident,
so it isn't advisable to remove all of your additional coverage.
Optional coverage includes medical payments, hire car cover etc.
Drop comprehensive coverage for older cars. If you drive an older
car that's worth less than £1,000, it's probably more cost-effective
to drop comprehensive coverage and opt for third party cover instead
since you'll probably pay more for the coverage than you'll collect
for a claim. You can find out the worth of your car by asking
car dealers and banks.
Make sure your credit report looks good. Car insurance companies often look at your credit history as there is a correlation between the risk to the company and your credit history. If you pay your bills on time and maintain a good credit history, you can enjoy lower insurance rates.
Drive less. Insurance companies often offer low-mileage discounts
to motorists who drive less than a predetermined number of miles
each year. You can use public transportation more often, car-pool
with friends, and take the train or a plane instead of driving
to another state. And you'll save on more than your coverage as
you'll need to spend less on petrol (of which prices are incredibly
high).
Maintain a clean driving record. The company will give you a price break and you can save on your insurance policy after a specified period of a clean driving record. This means that you have no accidents, no serious driving violations etc, during this period of time. The simplest and surefire way to qualify for this discount is to drive carefully and defensively all the time.
Choose a low-profile car. Insurance rates vary among difference
models of vehicles. Generally, sports cars and high-performance
cars tend to cost more to insure, mainly because they represent
more risk of theft and the drivers are often the people who drive
more recklessly. Newer cars will cost more to repair or replace
than older ones, so naturally they can more to insure.
Ask about safety and security discounts. The insurance companies
sometimes offer discounts on your insurance if your car is equipped
with the following: anti-lock brakes, air bags, automatic seat
belts, car alarms, tracking systems. These reduce the injury risk
to you, as well as the chances of your car being vandalised or
stolen.
Finally, ask about other discounts. You may receive a discount
if you buy more than one type of insurance from the same company
or if you insure multiple cars under the same policy or company.
You may also receive discounts for taking a defensive driving
course, staying with the same company for a few years, being a
driver over 50, good-student discounts, and being an AA member.
If you already have adequate health insurance, you can also eliminate
paying for duplicate medical coverage, thus lowering your personal
injury protection costs by a substantial amount.
This page is based on an article by Pete Lance is the founder
of http://www.USGasTracker.org
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