There are ways you can help to reduce your insurance premium. Here’s some insider tips of the trade.
Work out how much you’d really claim for.
Go for a policy with a higher excess (the amount of any claim you need to pay yourself).
It’s not always worth making a claim if it’s for a small amount. If you’re claiming for a small amount of damage it just may not be worth your while to claim on your insurance. Why? This can invalidate your No Claims Discount and can increase your next year’s premium payments.
A few policies will substantially reduce premiums for higher excess.
Protect Your No Claims Discount
If you don’t claim on your insurance policy within a year then you get a discount on your renewal premium. This can make a big difference to your overall costs. Some insurers offer to protect your No Claims Discount so that claims don’t impact on your discount. Taking out this protection is definitely worth considering as it helps keep your premium down.
Avoid Getting Points
Points on your licence will increase your premium. Speeding points remain on your licence for four years and insurers generally check for convictions during the last five before they are removed from your record.
So for example two speeding fines could hike up the price of your premium by as much as 20%. Driving whilst using a handphone can double your quote.
Third Party Doesn’t Always Mean Cheaper.
Generally you would expect third party insurance to be much cheaper because it offers less cover than fully comprehensive. BUT this isn’t always the case. So get quotes for both types of cover.
Add a Good Profile Second Driver to The Policy
Adding a second driver to the insurance even if they won’t use the car often could help improve your risk profile and sometimes reduce your premium. If your second driver has a good record then it averages out your overall risk profile. On the flip side, anyone in a higher risk category could bump up your premium.
Fronting is Fraud!
You should never add your name as the main driver on someone else’s car, such as one of your children, instead of them. This is known in the industry as ‘fronting’ and is fraud. When you come to claim, this will often be checked out and your insurance will be invalidated and can lead to prosecution, so don’t do it.
Car Modifications Will Cost You
The more changes you make to your car, the more you’ll be charged. Inform your insurer of any modifications to your car, whether you made them or not, or it may invalidate your policy. A modification is anything that isn’t part of the standard vehicle specification, including factory-fitted optional extras such as alloy wheels.
Tell Your Insurer
It pays to keep your insurance company informed about any special circumstances you have. eg, you’ve made a claim in the past few years, have a modified car or expect to drive 100,000s of miles a year, tell the insurer. If you don’t and then try to claim, even for an unrelated issue, your whole policy may be invalid. Also tell your insurer about any change, even if it’s just your address. This is crucial as it reduces potential problems in the event of a claim.
A change in circumstances includes moving jobs, as insurers believe this can affect your risk and therefore your premium.
Engine size and value all affect your car insurance cost. It’s worth considering this when you buy.
Tell the truth
Don’t be tempted to bend the truth when applying for insurance in a bid to reduce your premium. Remember that lying on your insurance form is fraud. It can lead to your insurance being invalidated and, in the worst cases, a criminal prosecution for driving without insurance.