5 Steps To Beating Increasing Car Insurance Premiums

Following announcements from leading motor insurers in 2007, premiums for UK car insurance are anticipated to rise by 10-20% in 2008.

A variety of causes have been quoted from an increase in claims because of unforeseen events like the recent floods to premiums already being artificially low for some years. Whatever the reason, an additional hike in motoring costs coupled with increases in other non-discretionary costs of living mean that 2008 could be a costly year for millions of UK residents.

Fortunately, you will find numerous steps you are able to take to counter these inflation busting increases on your motor insurance.

Step 1 – Don’t believe the buzz

In spite of what the adverts explain to you, there is far more to finding the cheapest cover than merely comparing the quoted rates. It is a complex, multi-variable product, and deserves your attention because of this. Have a good think about how and when you make use of car and what kind of cover and options you do and do not need. Many of us continue to renew policies with options we do not need and are unlikely to use.

Step 2 – Search online for the right cover and the lowest price

The main benefit of searching on-line is that you are able to compare cover and premiums from several dozens of companies using the same information. Price comparison websites provides you with a baseline to work from, but be aware that not all comparison websites are equal. A few make assumptions regarding your needs and get quotes that could be higher or lower than you’ll be offered. Search for comparison websites which guarantee the accuracy of the premiums quoted.

Step 3 – Look to non-traditional and newer insurers for the best prices

A surprising study run by a consumer advocacy group ran profiles through 33 insurance companies via multiple price comparison sites, and checking a number of risk profiles. The end result was that newer insurers, and insurers not known for doing motor cover consistently came out with the cheapest premiums. Do not close your eyes to a good price simply because the company isn’t “known” for car insurance.

Step 4 – Get cover which matches your driving needs and habits

Many of us just buy a standard car insurance policy with cover options that we are unlikely to need or use. If you are a low mileage driver with a standard policy, you can be wasting hundreds every year. There is even a new ‘pay as you drive’ policy which makes use of a GPS device built in your car to ensure that your premiums are linked to your personal driving habits such as mileage, the roads you use and time of day you use them.

Step 5 – Minimize the risk and make the most of discounts

Premiums for any insurance are based upon risk, thus to reduce your premiums, try and reduce the risk of needing to claim on your policy. Factors such as where your car is parked, how it is used and how secure it’s are all factored into premiums. A bit known trick that can work with a few insurers is to add a low risk named driver to your policy. A female over the age of 30 with a clean driving record can cut your premiums by 5-10%.

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