Reducing your insurance premium
Car insurance can be a provider of much needed peace of mind if you are one of those involved in an accident on UK roads. Figures from the Department of Transport for 2007 showed that over 30,000 people were killed or seriously injured in road accidents. It’s known that accidents happen and car insurance can not only cover you for injuries to yourself and others, but could repair your vehicle and get you back on the road as quickly as possible.
Nevertheless, it can be expensive particularly if you belong to a high risk group such as the young or new driver group whose inexperience is represented by higher premiums. So it is always a good idea to look at the ways in which you can keep the costs as low as possible.
The right type of cover for you
The first thing to consider is the level of cover you need:
- Third party only
Provides cover for injury to others and damage to their property; and any accidents caused by a passenger. This is the minimum level of cover legally required in the UK.
- Third party fire and theft
This provides all the same benefits as with standard third party but with additional cover in the event your car is damaged by fire or stolen.
- Comprehensive cover
This is the most extensive form of cover available; this can include personal injury cover, accidental damage cover, and cover for personal effects in the car and medical expenses. There may also be options for the policy which will provide legal assistance or a courtesy car. The actual options and premiums will vary from insurer to insurer.
Clearly the higher levels of cover will provide better protection, however it is always worth considering your personal circumstances when choosing your cover as you may find the more basic cover will be better suited for your needs.
Ways you can reduce your premium
There are many ways of reducing the cost of your premium including:
- Shopping around
Online comparison websites are able to compare dozens of car insurance quotes for you in just a few seconds, saving you time as well as money. You can also save money just by buying online as reduced overheads allow insurance providers to offer additional discounts to online customers.
- Drive a conventional vehicle
Cars which fall into lower insurance groups will generally cost less to insure as the cost of repairs or replacement is lower than cars from higher groups. Any modifications you add will increase your level of risk and if you don’t declare them could invalidate your policy.
- Improve security
Park your car in a garage if you have one. If you have an alarm, tracker or immobiliser fitted this will earn you a discount from many insurers.
- Annual payment
If you can afford to, pay annually to avoid monthly interest charges.
- Adjust your excess
By increasing your excess (the amount you pay in the event of an accident) you will lower your overall premium, be careful to only agree to an amount you can afford comfortably.
- Mileage limit
Agreeing to an annual mileage limit can help to cut the cost of your premium, make sure the amount you agree to is convenient for your use.
- Take an advanced driving course
New drivers could benefit from a discount in the region of 35% by passing the Pass Plus course.
- Drive carefully
Having two or more driving offences could increase your premium by up to 74% so keep within the law to avoid paying more than necessary. Most insurers will reward safe drivers with a no claims discount if you can maintain a claim free driving record.
Making a car insurance claim
The test of how good an insurer truly is revealed when a claim is made. To make the process as smooth as possible ensure you inform your insurer of the mishap as soon after it happens as possible. Ask your insurer for details of what documentation and supporting evidence they would like from you to support your claim. Photographs of any damage will help, as will keeping a copy of any receipts or correspondence relating to the claim.
If you do need to make a claim on your car insurance do not get any repairs made without first consulting your insurer. The insurance provider may have an approved repair centre that if you agree to use may speed up the repair and claims process.
