15 Ways to lower your car insurance quote1.Shop around
The difference in price between various companies can be significant. What one company may consider a high risk factor another company may not view as so important. Insurance companies arrive at a price for your car insurance by adding or discounting money after each answer you give to
questions they ask you. Each company has its own rules as to what they consider should increase or decrease your premium. By shopping around you get a better list of prices to compare.
2.Buy a lower group car
One of important factors that insurance companies take into account is of course your vehicle. There are thousands of different cars on road so companies divide them up into groups. Most companies will adopt ABI (Association of British Insurers) group rating. This splits up vehicles into 20 different groups. Generally speaking higher group rating for your vehicle, higher your premium will be. Some companies may also combine your driving experience with vehicle group to get a better idea of how high risk is. This is one of reasons why young drivers should consider buying a lower group car if they want to lower their insurance cost.
3.Consider Third Party Only cover
A Third Party Only insurance policy is minimum amount of cover legally required - it is also cheapest. Generally speaking you should consider opting for this type of policy if your vehicle is of low value. In unfortunate event of having an accident, any damage to a third party vehicle will be covered but any damage to your vehicle is not. However, if your vehicle is of little value then you may not be too concerned. It may not be worth paying extra for a Fully Comprehensive policy in these circumstances.
4.Maintain a good credit rating
More and more insurance companies are adopting credit scoring techniques as part of overall calculation of your car insurance premium. By keeping a good credit history you may avoid any additional premium that companies add to your price for having a bad credit score.
5.Buy on web
Many insurance providers now offer some good discounts for buying policy over internet. The theory is that by purchasing your insurance over web, you are saving company money by not requiring telesales agent time and incurring free-phone costs. This saving is passed on to you in form of a discount for buying online. If you have got prices by telephone then check your quote again on their website, you may be surprised at how much cheaper it is.
6.Have a higher voluntary excess
During quotation process you will be asked how much voluntary excess you want to have. Insurance companies will generally include a compulsory excess amount on policy but give you opportunity to increase this if you wish. The more voluntary excess lower your premium should be. However, in event of a claim, you will have to pay a higher amount yourself, up to total amount of excess on your policy.
7.Reduce your annual mileage
How many miles you do a year is a common question that can affect your car insurance premium. The more miles you do more your premium is likely to be. Quotation systems and telephone agents will often suggest an amount of miles for you. Try and work out how many miles you will genuinely do. It may be less than amount suggested. Of course, you should always give an honest answer to this and other questions.
8.Keep a clean driving record
This may be easier said than done. However, by having few or preferably no driving convictions, you can avoid being penalised by increases in your car insurance premium. Getting caught with a speeding fine is often not only financial penalty you incur. Insurance companies take very seriously all driving convictions and it is usually an important part of their rating process. You can expect an increase in cost of your insurance if you do get caught with a driving conviction, so it pays to be a safe driver.
