Buying the cheapest car insurance
Factors that will affect your insurance will include:
- Your address. Insurers check the accident claims record of people living within your neighbourhood. The fewer the number of claims from your postcode, the cheaper your insurance is likely to be.
- The car you wish to insure. Comprehensive records are kept, not only do the accident rate of different cars and models, but also the cost of repairing them, and how much damage they cause, on average, to third parties. Keep your insurance costs to a minimum. It is important to have a car which is rated as a safe risk.
- Your occupation. People in certain professions have fewer accidents than the average; these people include those in such professions as accountancy, teaching and caring. These motorists can expect to have lower premiums than average. Some occupations however produce more, or more expensive, claims. For example, people in the entertainment or sporting industries may be tempted to work late at night and socialise at venues where alcohol is consumed. They may also have extremely well paid passengers in their cars, who may be injured in the event of an accident. This category of driver can expect to pay more for insurance, and many insurance companies will not even accept them as a risk.
- Your age. Younger drivers have, on average, a far worse accident and claims record than older drivers because of a relative lack of experience, and the more erratic lifestyle. Younger people, particularly males, to drive more quickly, show off more to their friends, drive late at night and take risks with their blood alcohol level.
- Your current no claims bonus. How well you driven in the past is a good indication of how well you will driving the future.
- Where your car is parked overnight. Vehicles which are locked in a garage overnight are far less likely to be damaged, accidentally or deliberately, than those that are left parked by a pavement.
- Where it is parked during the day. Parking a car in a company car park these it far less liable to damage than if it is left on a public road.
- The type of insurance you wish to buy. Third-party only cover used to be a cheaper alternative to comprehensive cover. Unfortunately many people who buy this lower level of cover have had a higher than average accident record. There be many reasons for this, including the age of the car, maintenance issues, lack of security systems and an absence of design features which minimise damage during impacts.
As a consequence many insurance companies are now avoiding new customers who prefer to buy third-party cover which means that those buying fully comprehensive insurance very often find that they are paying less.
- How far away your renewal date. Is. If you buy your next insurance policy with a new provider up to a month before it is due, you are likely to pay a lot less than you would if you left it until the last minute.
So how do you find the very cheapest policy?
- Most people will get quotations from a price comparison site, and this can be an excellent way of finding a policy which is at least cheaper than the renewal premium from your current insurer. However, it is important to remember that no matter how big the site is, the panel of insurers which will be allowed to give you a quotation will be limited to the number of companies that the owners of the site have a financial arrangement with. In short, they will only offer quotes from those insurers are brokers which will pay them a commission. They are not therefore completely independent, no matter how much they claim to be!
- If you are to get the cheapest possible quote you should compare prices on several price comparison sites, not just one. This will give you a wider range of choices of insurer. It is also often worthwhile contacting a local insurance broker; these may have access to underwriters that can provide cheaper quotes or better benefits.
- Pay for your policy with one single payment in advance. Stop do pay for it monthly. Many of the insurance companies which offer the really best bargains will not accept monthly payment so those who buy this type of policy are not able to benefit from the cheapest quotations. In addition they will almost certainly have to pay extra insurance and administration costs over and above the basic price of the policy.
- Be choosy about the optional extras that you buy. Most comparison sites include extras such as a courtesy car, legal representation, or breakdown cover with the quotes that they offer you. These usually represent poor value for money. If you select an insurer you wish to buy a policy from what you are not particularly keen on buying these extras as well, just give them a ring. Their customer service staff are usually very easy to talk to and they may be more than happy to take these extras off your policy and reduce the premium even further.