Car insurance premiums may be dropping according to the UK’s car insurance market. Due to higher prices for a leading competitor in the insurance business, this move will likely start a price war with all the car insurance companies.
Driver’s still need to shop around, regardless if the price war begins. If driver does want to save on their premium, they must do some of the work. By just accepting the quote that your current insurance carrier gives is not considered shopping around and trying to save.
Insurance companies look at three things when giving a premium quote:
· where the driver lives,
· the type of vehicle,
· and the driver’s driving history.
Residence is a big factor when determining the price of car insurance. Living in a city, where crime is high will increase your car insurance. Placing the car in a garage and installing anti-theft alarms may help in getting a less premium, but it does not guarantee the premium will be lowered when living in a high crime area.
The simplest way to lower your premium is by the type of car you choose to drive. A lower-end, less powerful car model can lower you premium by 1/3rd of your cost. If the driver does not want to part with his vehicle, and it is a higher-end, more luxurious car, there are specialist insurers that can help with keeping your premium down a little.
The driver’s age is a big issue and can’t be changed. Lying about it will not help in trying to lower your premium; it will cancel your policy. Young and new drivers tend to have the highest insurance till they build up their driving history. The good news is after a year being claim free, the young and new drivers can expect to see 50% decreases in their premiums. Another way to keep the cost down is to raise their excess. Older drivers usually pay less for their car insurance.
Many insurance companies offer discounts. For example, if you work as a teacher, electrician, or a member of a professional body, you may receive discounts. Individuals need to check with their place of employment. By using third party coverage, premiums can be lowered by 30%, instead of using comprehensive coverage. Each individual has to decide for themselves which coverage works best for them, since third party coverage covers a lot LESS than the full.
Paying a large amount of the insurance premium can also save the driver money and get charged less interest. Some drivers even pay the full amount for the year by using credit card offers that advertise low or no interest for 12 months! It is still a monthly payment; just no interest is being incurred. Always shop around and check with your job, discounts may be offered but you have to ask to find out.