Insurance World

Most drivers are paying too much for their car insurance. Lets take a look at how they can reduce the cost without sacrificing essential insurance cover.

As the majority of car drivers tend to stay with their present insurer and happily pay whatever renewal price they are offered the company has no incentive to offer you its lowest quote. So it pays to shop around for insurance. The market is fiercely competitive and many insurance companies offer an introductory bonus simply to entice you to switch.

Only pay for the cover you need. While this seems like an obvious statement, it is surprising just how much extra cover we pay for but will never use. Again, shop around for policies that suit your circumstances.

For example, a growing number of companies are offering extremely competitive quotes for particular low risk groups such as older drivers, women, reduced mileage drivers and drivers with low risk jobs.

Qualifications such as the advanced driving or police driving tests can make a huge dent in your insurance bill and it may be worth your while searching out insurers that specialize in that field.

For the average driver, savings can be made by fitting accessories that reduce the risk of accident or theft. Features such as airbags and anti-lock braking systems can reduce the number of accidents on the road while vehicle immobilizers and satellite tracking systems will lower the chance of theft.

Many car manufacturers are including safety and security accessories as standard now so it pays to consider them when buying your next vehicle.

Where you store your vehicle also makes a difference to your insurance cost. Is it garaged at night? How secure is the garage? Do you have CCTV, security patrols or a manned gateway? All these factors make it harder for thieves to take your vehicle and so attract reductions in your policy cost.

While looking at ways to cut your insurance premium costs many people are tempted to reduce cover or raise the excess they are willing to pay. I personally think that this is a false economy that could cost you dearly in the event of a claim.

It is much easier and cost effective to simply select the parts of the policy that are relevant to your driving style and cut out the cover that you do not require. In this way, you are still fully covered for minimum cost.

Can I insure a modified or classic car; who will offer insurance cover?

Yes, you can insure a modified car but because your car is a specialist car, not all auto insurance companies might be willing to provide coverage for it since it requires high price replacement parts and also skilled labor if the car is involved in an accident. Thus, you have to take a special car insurance that is designed especially for modified and classic cars.

How can I cut down my car insurance premium?

If you wish to cut down on your car insurance premium you must take care of a few things. Park your car overnight in the garage rather than leaving it on the drive. Fit insurance approved anti-theft devices; consider Third Party Fire and Theft for older cars. Find out discounts offered by the insurance provider when requesting quotes. Young drivers (under 25), who are often charged extremely high premiums, should have an extra driving course certificate.

What is ‘excess’?

It is the amount you have to pay when you make a claim for the loss or damage to your car. It can be voluntary or compulsory. If someone else causes the accident you may be able to reclaim the excess through the legal cover, which can be taken out with your car insurance policy. Otherwise you lose the excess. Voluntary excess is the amount you agree to pay to the company. It offers premium discounts. Compulsory excess is generally imposed to young drivers. Because their risk factors are high and the companies don’t want to insure them. So, in order to insure, they have to surrender with this payment.

What is legal cover?

It provides expertise and assistance required to recover uninsured losses such as medical costs, loss of earnings and excess payments where the fault was not yours. It is available as an optional with most car insurance policies.

Can an insurance company cancel my auto policy?

Yes, you auto insurance policy may stand canceled if you fail to pay the premium or if your consumer’s license has been suspended or revoked during the term of an auto policy. Also, if there is a fraud or serious misrepresentation when completing the insurance application, if the you are convicted to a crime, or if changes are made to the property that increase the risk of loss then the company may cancel your insurance policy.