Be smart and reduce your car insurance

As you know car insurance is compulsory, however, what is not is the need to pay more than we need to. We all know that by looking around and getting quotes off different insurers can really pay off.

Many of us ignore the basic items that can make a massive difference to our car insurance prices.

At first glance many people baulk at an insurance quote with a higher excess than normal. By having a higher excess on your policy means that you will be paying a lower yearly premium. It would be wise to keep aside the excess amount on your policy in case of any accidents, this way it won’t hurt so much!

I realise this may sound strange but if you are considering a car, then it may be prudent to check what the insurance may be. By taking two like for like cars with the same engine size but different makes, you would be surprised at the difference in group ratings there could be.

There’s a popular TV show currently on MTV, Pimp My Ride, where it follows a groups efforts in sprucing up and modifying their cars. Quite frankly if this is done, your insurance premiums shoot up. Many insurers will refuse to give you a quote and the ones that are left crank up the premium.

Insurers reward drivers who have a low annual mileage. By simply cutting down on the use of our cars by participating in a car share scheme can have appositive effect on our insurance premiums. Local government are continually improving public transport and at the same time discouraging drivers from entering inner cities. Car sharing schemes and public transport may have further benefits than just reducing your car insurance quote.

Always try and park your car in a garage or at least off road on a driveway, this will result in significantly lower premiums

Instead of spending money on a top of the range sound system for your car, it would be wiser to make sure your car is equipped with an alarm and immobiliser, especially if you live in a higher crime area like a city. This will result in a favourable and lower quote from your insurance company.

Try and keep hold of your no claims bonus, as this will make a huge difference in your car insurance premium. The higher no claims bonus you have the higher the discount will be on your insurance quote.

When you add more drivers to your policy this can work out more expensive. Try and keep additional drivers to a minimum if any at all. The reserve of this could actually work in your favour. If you are under 25 years of age, insurance companies will regard you as a high risk. It could then be worthwhile to have a parent act as the insured with yourself down as an additional driver.

There’s no denying that fully comprehensive insurance is the option to go for, however, in some cases due to the age and value of the car this can sometimes be the wrong option. If your premium quote comes in at more than a tenth of the car value, it may be better to lower the cover to third party.

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