By: Kieran Gallagher
Low Cost Car Insurance
Car insurance premiums are rising and are becoming almost prohibitive for younger drivers, especially males under twenty five years of age. The reason for this is that the cost of car insurance is based on a number of factors, risk being one of the main. And, statistically speaking, young male drivers are a high risk category.
Other factors which have a bearing on the cost of the car insurance include, make and model of the car, driving record of the owner, and what the car is predominately used for. The typical use of the car under the policy include private use, social and domestic, and commercial use which includes the carrying of goods.
Here are a few tips that you can consider which might help in getting a low cost car insurance.
Bundle Insurance Policies: Many insurance companies will offer discounts if you sign up for several types of insurance. For instance you could have home insurance and life insurance from the same company.
Raise the Excess. The excess is the amount you will have to pay in the event of a covered claim. Generally if you increase the amount of the excess, the cost of the premium will drop. But, there is a balance to be struck between the amount of the excess you can afford and the saving you will make in your premium.
Get Comparative Quotes. Probably the most significant saving can be made by contacting several companies and asking for their best quote. There is fierce competition in the car insurance market and this means that staff of these companies are under pressure to write as many policies as they can. This should result in reasonable discounts for the astute driver. Do not leave this until the last minute, but rather you should start your research about a month before your renewal date to give you adequate time to gather all the information you require.
Named Drivers. If there are named drivers on your policy, then the insurance companies will charge you extra for this. If possible, you should consider removing these drivers from your policy.
Full Driving Licence. If you have a provisional driving licence then your insurance company will charge you a considerable excess for this. You should make every effort to complete your driving test by taking driving lessons from a reputable driving school and follow that by passing the test and obtaining your full driving licence.
Advanced Driver Training. For more experienced drivers it could be well worth while taking an advanced driver training course leading to a certificate which should then be presented to your insurance company with a discount request.
Engine Size. To get the cheapest car insurance for a new or second hand car, you should consider purchasing a smaller engine size as this has quite a bearing on the premium you will pay. While it may be tempting to own the most powerful car on the block, the insurance company will penalise you quite heavily.
Penalty Points. There are a number of driving offences which attract penalty points and your premium will be increased as a result. All of the most common offences can and should be avoided with due care and attention. Next time you get behind the wheel, do not exceed the speed limit, wear your safety belt, and either use a hand set for your mobile phone, or switch it off during your journey. The question about penalty points will most certainly be raised by your insurance company at renewal and you will be rewarded provided your record is clear.
Third Party Only. When deciding between different car insurance policies, consideration has to be given to the amount of the budget available and the level of cover required. A fully comprehensive policy will cover damage to your vehicle in addition to damage to a third party. This type of cover is much more expensive than third party only, but it will pay out in accidents where your car is damaged. An example would be if your car skidded on ice and went off the road. Third party cover on the other hand would not pay out in this event. So, if your budget is limited, the cheapest car insurance is third party only, but be aware that you will also have a lot less cover.
