It seems that these days motoring costs more and more – why should that be though when there’s not only a wealth of decent used cars available but there’s plenty of choice for insurance? Granted, fuel prices continue to rise and that is sadly out of our hands (to a degree, depending on your driving style), but there are ways in which you can save on your premium. Let’s take a look:
No Claims
This is one of the most oft-cited ways in which to be charged less for an insurance premium of either type. Simply put, what you’re telling the insurance company is that you’re a reasonable driver – or rather at the very least you haven’t made a claim in however many years. The more of these you have, the more fait they will put in your ability to stay out of trouble on the roads. Ergo, if you’re the type who crashes at least once a year then you should be paying more than someone who is more ‘reliable’.
To make sure that you’re eligible for no claims bonus/discount, keep your previous insurance policy documents and the most recent ‘renewal quote’ you get from your current insurer. This is a great way to bring your policy cost down and proves that you have a reasonable level of skill behind the wheel (though statistically an accident will happen to all of us at some point as drivers, however small).
Storage
Your car makes up part of the cost of the policy (how new, valuable and modified it is to name just three variables) and you make up most of the rest. However, part of the cost lies in the area in which you live. Simply put, it’s a bit like the NHS Postcode Lottery only this time, the rougher an area you live in, the more likely you are to have a higher premium. To put it in perspective, if the area where you live has high levels of car crime, statistically you’re more likely to take a hit.
Multiple Policies
Most UK insurers will offer a range of policies on a variety of items – this may include motor, home, personal possessions and even life cover. Whilst shopping for insurance cover, check the rest of your policies. If you consolidate, you might well get a bigger discount. In doing so, they may well match a cheaper quote too – it’s a win-win situation.
Voluntary Excess
This is an ‘interesting’ area of insurance, and to me is the closest there is to a scam. This excess basically acts as a cover for the insurer. Whatever your claim, you’ll pay your voluntary excess as the first part. I.e. if you have a claim for £1,000 and your voluntary excess is £300, you’ll pay the first £300, leaving the insurance company to foot the bill of £700. An excess is a way in which to lower your claim, for instance if you elect to pay a £500 excess your overall policy cost will go down – but you will have a big fat bill to pay out if you do have to make a claim. Always aim for the ‘middle way’ if you can.
Phone Use And Other Bad Drivers
It will come as a shock to some, but if you’re caught driving whilst using your mobile (now illegal for those of you who live in the sticks and haven’t seen the Highway Code or the news for a while) you may find that your insurance cover goes up, as well as being rewarded with 3 points on your license and a £60 fine.
How does this work? Well all insurers should be made of endorsements that you have, whether for speeding or other. A CU80 is a ‘mobile phone whilst driving’ offense and so easily spotted amongst other convictions. Due to increased risk, there are some insurers who won’t cover you at all if you’re found guilty of this type of offense.
Other drivers with a variety of offenses will also find it difficult to get cover – not to mention it being more expensive to boot. I guess how it really operates is quite simple and that’s to ensure you don’t go around being an idiot. Follow the rules of the road and common sense and you should be okay. Just don’t get me started on due process if you are unlucky enough to be in a collision though.
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