Posts Tagged ‘Insurance Premium’
After so many experts have warned us that the cost of car insurance is on the rise, what’s happened? It’s fallen! It’s mostly down to the growing impact of shopping online.
In the second half of 2005 the average car insurance premium fell from £470.17 to £462.15. But it’s the silver surfers who’ve benefited most. During the last six months of last year, drivers over the age of 65 have seen their average premium fall by 4.5% from £342 to £347. What is most surprising are the huge differences in premiums between providers. Differences of 40% between the most expensive and the cheapest are common.
It seems that most motorists are not aware of this as every year, half of them automatically renew their insurance with their existing insurer. A further 19% only bother to get one competitive quotation.
And readers will be surprised who sells the expensive policies. A recent survey in “Which”, the consumer magazine, shows that Norwich Union - the UK’s biggest insurer - failed to come top in any of the 36 driver categories surveyed. Direct Line, another well-known name, only managed one top spot.
This is down to the marketing strategies of the big brand names. They have been building up their client base with low prices and heavy advertising and then gradually increase prices. They are clearly relying on apathy and brand loyalty to keep their clients. And with 50% automatically renewing, it works!
But if you decide to shop around, be careful. A low price isn’t everything. Some policies have mouth-wateringly low prices but skimp elsewhere.
For example, when your car is being repaired, do you want a courtesy car? Some policies only pay £100 or so for stolen audio equipment. Is that enough? Do you want to insure your personal belongings whilst they’re in your car? And crucially, some comprehensive policies won’t provide third party cover if you to drive another person’s car - even with their permission!
Before you decide, it’s wise to consider all these aspects.
But going back to price, if you think prices are cheapest on the Internet, you’re right! Internet quotations are normally 5% - 10% cheaper than telephone quotes.
When Internet shopping, most people look for the cheapest quote and then read the details about the cheapest policy to check out that they provide the cover that’s needed. You can hunt for the best deals by searching under “car insurance” but some of the discount insurance sites are more easily found if you type in “discount car insurance” or “cheap car insurance”.
But please remember, when renewal time comes around go shopping again. Don’t automatically renew! It’s so easy on the Internet as I found this year. My previous insurer quoted me £945 and I eventually bought it for £702. A saving of £243 for 30 minutes work.
1.Buy from the internet.Most companies offer a discount for online applications as this is automated process and costs them a lot less to process your application, you can usually see discounts of 5%-10%.Click here to get a instant online insurance quote
2.Shop around.All insurance companies use different formulas to calculate your insurance premium by adding or detracting money after each question the ask you.By shopping around you could find big savings on your insurance premium.
3.Buy extra products.Most insurance companies also do other insurance products ie”Building’s and content’s insurance”.Most insurance companies will give extra discounts for purchasing more than one product,by doing this you could save a fair amount on all your insurance premiums.
4.Pay your insurance premium in one go.By paying your insurance premium in full you can avoid paying costly interest charges that would be added if you paid your insurance premium by instalments.Some insurance companies may charge as much as 15% APR on instalments.You may even receive a discount for paying in full.If you can not afford to pay in full check out what rate a small loan would be you may still save some money.Fill out a online loan application.
5.Increase your voluntary excess.Your excess is the amount paid by you in the event of a claim,by increasing this your insurance company should reduce your premium.
6.Lower your annual mileage.Lowering your annual mileage can reduce your premium,most insurance companies will quote you for around 12,000 miles a year.Try and work out how many mile’s you will do if it’s likely to be less you may get a discount.Be honest about this as your insurance company may ask to see old MOT’S and service history to verify your mileage in the event of a accident.
7.Have a Alarm,Immobiliser or Tracker fitted.Theft of and from your vehicle play a major role in the calculation of your insurance premium.Having a alarm or immobiliser fitted will give you a small discount to your premium and having a tracker fitted could make you quite a saving.
8.Take the advanced driving test.Passing your advanced driving test will show your insurance company that you have extra skill when driving and are less likely to be involved in a accident.
9.Don’t inflate the value of your car.Adding extra value to your car when you apply for your insurance quote will do nothing for you apart from increase you premium.In the event your car is stolen or written off you will only be paid the market value of your car at the time of your accident.
10.Look after your credit rating.Insurance companies are now looking at your credit score as part of the calculation for your insurance premium.Maintaining a good credit rating could avoid unnecessary additions to your premium.
11.Insure your car Third Party Only.Third party only is the minimum cover you are required to have by law it’s also the cheapest.If your vehicle is of a low value then you could consider this type of cover.You need to remember that with this type of cover if you was to have a accident that any damage to your vehicle would not be covered for repair.
12.Keep a clean licenceInsurance companies take driving convictions very seriously and can dramatically increase your car insurance premium,by maintaining a clean licence proves to the insurance you are a safe and careful driver.
13.Remove any unnecessary drivers.If you have a young driver on your insurance policy that no longer use’s the vehicle you should remove them as this will reduce your premium.
14.Young driver’s add a older driver.Some insurance companies will reduce young drivers premiums if they have a older named driver on the insurance.
15.Build up your no-claims discountOne of the biggest factors affecting your car insurance premium is the number of years no-claim’s discount.You could receive up to 75% discount for around 5 years of no claims.The more years you can stay claim free the safer driver your insurance company will see you as.
16.Protect your no-claims discount.Although this will increase your insurance premium if you have a lot of years of no-claims you may want to protect this as a small claim may increase your premium by up to 75%.
17.Buy a lower insurance group car.A very important factor to your insurance premium is what car you drive.Most insurance companies adopt the Association Of British Insurance Group Rating.This rates vehicle’s from 1 - 20 generally speaking the higher the group the higher the premium.By buying a car with a lower group rating can lower your premium especially for young or inexperienced drivers.
18.Join a car club.If your vehicle is a classic or specialist consider joining a club related to your car most clubs offer insurance schemes which have very good premium rates.
19.Put your spouse as a named driver.Some insurance companies offer discounts when you add a spouse as a named driver as opposed to unmarried couples,they see marriage as a sign of stability and associate stability with safe driving and there for give you a discount.
20.Take pass plus.If you are a new driver consider taking your pass plus.some insurance companies could give you as much as a 25% discount and when you have just passed your test and have no no-claims this could make a considerable saving.
Car Insurance Quote - Things To Know To Get Very Cheap Car Insurance And Quotes
Auto insurance premiums vary widely from state to state and even within states. The same person may find swings of as much as $700 on the cost of an annual policy. Insurance agents are not legally bound to tell a perspective customer about discounts which may apply to his/her insurance. There are, however, things the consumer can do which may lower the price paid for auto insurance.
Higher deductibles
The single quickest and easiest way to lower your insurance premium is to raise your premium. Having a $1000 or even a $1500 deductible can lower premiums 15 to 20 percent. If you decide to go this route, consider putting the money saved the first year into an account earmarked to pay the deductible should you have any accident.
Investigate auto records
Your driving record may be unblemished but the record of the car model you own can also have an affect on your premiums. Insurance copies compile extensive reports on the way cars respond in accidents and how popular certain cars are with thieves. Cars with poor crash test ratings and cars that are frequently stolen cost more to insure. When buying a new car use an auto buyers guide to compare crash test and theft rankings.
Use the same insurance company
If you have more than one vehicle insure all of them with the same company. Almost all insurance companies offer multi-car discounts. Many companies offer further discounts if you use any other products they offer such as homeowners insurance and life insurance.
Getting many quotes and comparing them is the best way to check pricing, coverage and save money.
And, dont forget, the best way to lower your car insurance premium is to drive safely.
Please see our recommended sources for insurance quotes from multiple providers. We have done the research so you don’t have to.
During the last few years, the average car insurance premium has virtually been at a stand still. The reason is price competition. There are now over 100 car insurance companies fighting for your business and competition is fierce. There are always bargains to be found as companies cut their premiums to attract motorists in the hope you’ll remain loyal and stick with them in following years. Indeed, every year, 23% of us renew our motor insurance with our existing insurer.
But in recent years the Internet has created a revolution in the marketing of car insurance. It makes shopping around so easy without the need to make loads of phone calls and without spending time threading yourself through the automated phone systems beloved by so many call centres.
But you’d be wise to remember that the lowest premium is not always the best. For example, some insurers have recently pushed up the level of claims excess they want you to pay as this helps them provide you with a much lower quote. You should also check out whether a courtesy car is provided if your car is in for repair. You might also feel you want legal insurance cover and automatic windscreen replacement. An accident helpline can also very useful in the middle of an emergency! You’ll need to phone the broker or insurance company you’re thinking of dealing with in order to check out these points.
17 Top Tips
for cheaper car insurance
Get your online quotes through car insurance brokers. Their computer systems will search for the best quotes from 40 or more car insurers and save you lots of time. When you’ve got their cheapest quote, phone them to discuss the relative merits of the cheapest quotes they found.
Garage your car at night. Insurance companies know that a car left on the road at night is much more vulnerable to theft and damage. If you don’t have a garage, if possible keep it on your drive.
Update the estimate of your mileage each year. If you’ve moved home or changed your job you may have shorter commuting journeys. If so, your premiums should be less.
Your premium can be influenced by your job. Landlords, journalists, and professional footballers to name but a few, all pay more! Go for a job that’s a bit more boring! Accountants and civil servants pay less!
Getting married could save money on your car insurance, particularly if you’re male and under 30.
If you’re under 25, add an older experienced driver with a good riving record onto your policy as a named driver. But don’t let him be too old! premiums start rising again after age 60!
Consider paying a higher accident excess. The average excess is about 100. If you are prepared to increase you claims excess, your premium will fall significantly.
If you have cheap or old car, consider buying just 3 rd Party cover. Get quotes for 3 rd Party and comprehensive insurance and weigh up the savings.
Are you aged between 18 and 21? Then consider pay as you go insurance. Norwich Union has recently introduced the first pay as you go insurance policy, which charges you exactly for the miles you drive. It also charges more for the miles you drive between 11 and 6 at night. The system works through a Global Positioning System which is fitted to your car for a one off fee of 199. The GPS black box tells Norwich Union how many miles the car’s been driven and they send you an monthly invoice.
A new driver? Spruce up your driving technique by taking some more driving lessons. New drivers can slash their insurance costs by as much as 35% by taking Pass Plus lessons. These give you extra training for driving in rush hour traffic, motorway driving and night driving. Lessons cost between 15 and 30 per hour. (www.passplus.org.uk). You can also reduce your premium if you’ve taken a course with the Institute of Advanced Motorists (www.iam.org.uk).
Buying a new car? Then check out the insurance group before you buy. Cars fall into one of 20 insurance groups with 1 being the cheapest and 20 the most expensive. If the proposed insurance premium is too high, chose a car that’s in a lower group.
High spec and performance cars attract thieves and are more expensive to repair - so they always cost more to insure. Consider something with a little less voroom!
It’s hard we know, but try hard not to speed! Most insurance companies will ignore one fixed penalty fine but get more and your premium will rise.
Got 4 or more years no claims discount? Pay the extra get the discount protected.
Fit a satellite navigation system. Some insurance companies have noticed that sat nav cuts the accident rate by letting drivers concentrate on the road. Insurers will soon be giving discounts if you have it fitted.
Get a engine immobiliser or alarm fitted. It could save you between 5-8%.
Got more than one car in the home? Some insurers will give a discount for insuring them all in one policy.
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 dont 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.
After so many experts have warned us that the cost of car insurance is on the rise, what’s happened? It’s fallen! It’s mostly down to the growing impact of shopping online.
In the second half of 2005 the average car insurance premium fell from 470.17 to 462.15. But it’s the silver surfers who’ve benefited most. During the last six months of last year, drivers over the age of 65 have seen their average premium fall by 4.5% from 342 to 347. What is most surprising are the huge differences in premiums between providers. Differences of 40% between the most expensive and the cheapest are common.
It seems that most motorists are not aware of this as every year, half of them automatically renew their insurance with their existing insurer. A further 19% only bother to get one competitive quotation.
And readers will be surprised who sells the expensive policies. A recent survey in Which, the consumer magazine, shows that Norwich Union - the UK’s biggest insurer - failed to come top in any of the 36 driver categories surveyed. Direct Line, another well-known name, only managed one top spot.
This is down to the marketing strategies of the big brand names. They have been building up their client base with low prices and heavy advertising and then gradually increase prices. They are clearly relying on apathy and brand loyalty to keep their clients. And with 50% automatically renewing, it works!
But if you decide to shop around, be careful. A low price isn’t everything. Some policies have mouth-wateringly low prices but skimp elsewhere.
For example, when your car is being repaired, do you want a courtesy car? Some policies only pay 100 or so for stolen audio equipment. Is that enough? Do you want to insure your personal belongings whilst they’re in your car? And crucially, some comprehensive policies won’t provide third party cover if you to drive another person’s car - even with their permission!
Before you decide, it’s wise to consider all these aspects.
But going back to price, if you think prices are cheapest on the Internet, you’re right! Internet quotations are normally 5% - 10% cheaper than telephone quotes.
When Internet shopping, most people look for the cheapest quote and then read the details about the cheapest policy to check out that they provide the cover that’s needed. You can hunt for the best deals by searching under car insurance but some of the discount insurance sites are more easily found if you type in discount car insurance or cheap car insurance.
But please remember, when renewal time comes around go shopping again. Don’t automatically renew! It’s so easy on the Internet as I found this year. My previous insurer quoted me 945 and I eventually bought it for 702. A saving of 243 for 30 minutes work.
The more you understand about any subject, the more interesting it becomes. As you read this article you’ll find that the subject of car insurance rate is certainly no exception.
Looking For the Best Car Insurance Rate?
You don’t need to go places, meet lots of agents or drop by headquarters of different car insurance companies.
Traditionally, you will have to ask your trusted agent/broker about the best rates that can be offered to you. It somehow works, because the agent handles multiple accounts and affiliations with various insurance firms. And past experiences from other clients make him/her more knowledgeable about the car insurance gateway.
For sure, direct contact or transaction to car insurance companies will save you more on premiums. Why? Because middlemen are eliminated and so are the commissions paid to them. But you will surely find the task a very tedious activity.
Online processing of car insurance applications proves to be a wise move if you are after convenience and savings on gasoline and transport expenses. This mode will surely get you the best of the best rates across the Internet within seconds, and at your fingertips.
Online, you will find a lot of Web sites offering services that scout for cheapest car insurance quotes from insurance firms. The services will give you freedom to exercise your freewill and choose the car insurance company that offers the best quotes and rates for your needed coverage.
How to get the best car insurance rate?
Sometimes the most important aspects of a subject are not immediately obvious. Keep reading to get the complete picture.
To get a cheap car insurance premium, you will have to invest, first of all, in clean driving records. Speeding tickets or traffic violations you have committed for at least the past five years will directly affect the rates you will automatically get for your car insurance policy. If you already have tickets, adopt a self-policy that ‘it is still never too late.’ Start practicing some disciple when off the road.
Get a higher excess charge or deductible. Deductible is the amount you are willing to personally shoulder in case of accidents, repairs or damages. For example, if you set a £500 deductible, the insurance company will not cover any expense if the cost of repairs from a damage will cost less than £500. Suppose the cost of repair reaches £600, you will pay £500 and the insurance firm will take the £100 bill.
The idea might sometimes be misleading. Some people fall through this trap by setting very low deductibles to make sure the insurer covers most of the expenses for repairs or accidents. The catch? Lower deductibles equate for higher premiums and vice versa.
Personal and car information are variables you cannot do something about. But they are the primary factors that get evaluated upon the processing of your car insurance application. Don’t lie and sweeten your facts. Be honest. You may not get the best rates by doing so, but you will surely get the best and real quotes available for drivers of your classification if you will be open and inquisitive.
The best versus the cheapest
Best car insurance rates are not necessarily the cheapest. Best, still is a relative term, even in the car insurance jargon. For most of the industry insiders, best car insurance rates are attained if the coverage and policy purchased are comprehensive, broad and practical, even if the premium that comes with it is not that cheap.
Likewise, the cheapest car insurance rate may not be the best because certain coverage or policy clauses make them less compared to others. The cheapest car insurance rates usually lack certain provisions for various situations and accidents. Sometimes, hitting the bottom is not that ideal, especially if there are other more attractive options out there.
If you’ve picked some pointers about car insurance rate that you can put into action, then by all means, do so. You won’t really be able to gain any benefits from your new knowledge if you don’t use it.