Looking for the cheapest insurance for your car, guaranteed? Whilst no insurers can guarantee to offer everyone the best, lowest possible quotes, there are ways of reducing the cost substantially. Whether you are a young driver under 25, an average motorist or even highly experienced sports car owner, there are still ways to cut your premiums substantially.
Look for a policy bargain well before your renewal date is due. Insurance companies may offer really inexpensive policies to motorists who are well-organised; if you start comparing quotations a month before you actually need to buy insurance, you will almost certainly pay less than someone who leaves it until the last minute. These price reductions can sometimes save up to £100 or even more!
If you are a very young driver, or are fairly new to driving you may qualify for relatively dirt cheap cover by including an older and more experienced person on your policy. This is because insurance companies like to see someone else having an interest in the car when the main driver doesn't have much of a track record. It is important however that (a) the nominated driver has given you permission to do this and (b) this person actually drive the car from time to time. It is worth experimenting with the application form to see whether this tactic result in a worthwhile reduction in your premium.
People looking for the cheapest possible premiums used to buy the absolute minimum cover, which was 3rd party only. For many years this was the least expensive way of buying cover; however statistics showed that it was also the highest-risk risk business for insurers, with a much higher level of claims than normal. As a result premiums for this class of cover have increased dramatically to such an extent that it is not unusual for fully comprehensive policies to cost less than the equivalent third-party ones, even despite the huge difference in benefits.
Park your car on a driveway or in a garage overnight, if this is at all possible. Leaving it on a roadway put it at risk of vandalism or damage from passing vehicles.
Be aware of security. Keyless entry systems are being hacked wholesale and they cannot be trusted. Steering locks can be cheap but still act as a huge deterrent to opportunistic thieves.
Buy a dash cam. In most accidents each driver blames the other. Having video evidence of what really happened can persuade the other person's insurance company to pay up, rather than you having to make a claim against your own insurer and losing your no claims discount.
Never leave your car unlocked, and certainly never leave valuables on display inside it. A popular hunting ground for thieves is a garage forecourt where motorists fill up with petrol and go off to pay without locking the car, and sometimes even leave the keys in the ignition! If you suffer a loss under these circumstances there is a reasonable chance that your insurer will refuse to pay out, and that at least you will still find your next premium increasing substantially.
Any of the more popular sites, such as Go Compare, Money Supermarket, Prudent Plus, confused.com etc can save you money. However, not only do they all have different panels of insurers, but they have different financial arrangements with these companies. This means that you can sometimes find lower prices for identical policies from the same insurance company, just by getting quotes from more than one comparison site. So don't just compare prices on one site, try getting quotations from several of them. It only takes a few minutes and might save you a lot of money.
One of the major factors that insurers take into consideration when they work out a premium is the address of the applicant. Certain postcodes have higher than average levels of vandalism, fraud, theft or accidents. Premiums for motorists living in these areas are higher than average, and in certain postcodes it is almost impossible to get cover at all without going through specialist brokers and paying extremely high premiums.
Your occupation could be a problem as well. If you are in the sports or entertainment industries you will probably pay the highest possible premiums since, statistically, you are not only more likely to be involved in an accident but also the cost of a claim can be very high, particularly if you have highly paid passengers who suffer injuries. People who work at nights and weekends also pay a lot more, since a higher proportion of car accidents happen between 11 PM and 6 AM, particularly on Friday and Saturday nights.
The car you drive has a great influence on the premium. Not only are some cars more prone to being involved in accidents, but they can also be more expensive to repair. When spares have to be bought from abroad this causes delays which can increase costs if the car has to be stored for a longer period before it can be repaired, or if the motorist is entitled to a courtesy car in the meanwhile.
Older cars cost more to insure, generally, than newer ones. This is because new cars are likely to contain more safety features, and are less likely to have developed faults in areas such as brakes, lights and steering which can sometimes result in problems on the roads.
A large number of insurance companies do offer monthly repayments of their premiums. However, they almost all charge interest or management fees over and above the basic premium. In addition, some companies will not accept clients who cannot, or do not wish, to pay the full premium in advance. Unfortunately some of these companies are the ones that routinely offer the lowest prices, and the best benefits. This means that if you do prefer to pay on a month by month basis your insurance is likely to cost you a great deal more.
If you have an existing insurer and your renewal premium is due, some companies will allow you to continue with your cover by paying regular monthly instalments, but with no extra deposit in advance. However, if you switch to a different insurer you will not qualify for 'no deposit' insurance; this is because under contract law your cover would not be legally enforceable unless at least some money had changed hands. This sum can be as little as 8% or 10% of the premium; but this depends upon each insurance company and the applicant's credit rating.
There isn't one because every motorist is different and presents different risks to the insurers. They therefore tend to specialise in areas that they have the most experience in. For example, a company such as LV= might offer the very cheapest cover to middle-aged motorists driving family cars, whilst being completely uncompetitive for drivers under 21, who may find cheaper cover with companies such as Admiral, More Than or perhaps Privilege. However, the age of the applicant is only one single factor that the insurers used to calculate the premium. A company which is more lenient towards a young driver may charge a heavier premium to someone who lives in a high risk postcode; or may be more expensive than average for someone who drives a more powerful vehicle, or a sports car.
This is why it is important to get as many different quotes as possible.
The reason why young drivers pay so much for their insurance is because the average youngster is more prone to accidents than those in other age groups. It is unfortunate that someone who may be extremely careful is still penalised with a high premium, just because other people in that age group are less skilful, experienced and careful than they should be. Telematic Systems offer the opportunity for motorists to be judged according to their own driving ability, by recording every journey and analysing the data to work out just how safely the driver performed. Someone who avoided sharp cornering, heavy acceleration, breach of speed limits, or nighttime driving would probably find premiums reducing in the future; conversely someone with poor driving habits could find premiums increasing considerably; or even have cover withdrawn completely. So, if you intend to drive with full consideration for other road users, your own safety and that of your car and passengers, a black box policy may well be a good thing. If you are a road hogging tearaway, then you will very quickly be found out and it could be financially disastrous for you.
Price comparison sites are wonderful at finding very cheap insurance for the average car owner. However, despite their claims they do not guarantee to have every insurer in the country on their panel, not least because they only accept those that will pay them a commission! Sometimes a good local insurance broker can find a smaller or more specialised insurer that can offer cheaper quotations to certain motorists; particularly if they are out of the ordinary. This would include those with unusual cars, high risk home addresses, a record of convictions or accidents, and those under 25.