15 Ways To Lower Your Car Insurance

1.Shop around

The difference in price between various companies can be significant. What one company may consider a high risk factor another company may not view as so important. Insurance companies arrive at a price for your Car Insurance

by adding or discounting money after each answer you give to the questions they ask you. Each company has its own rules as to what they consider should increase or decrease your premium. By shopping around you get a better list of prices to compare.

2.Buy a lower group car

One of the important factors that insurance companies take into account is of course your vehicle. There are thousands of different cars on the road so companies divide them up into groups. Most companies will adopt the ABI (Association of British Insurers) group rating. This splits up vehicles into 20 different groups. Generally speaking the higher the group rating for your vehicle, the higher your premium will be. Some companies may also combine your driving experience with the vehicle group to get a better idea of how high the risk is. This is one of the reasons why young drivers should consider buying a lower group car if they want to lower their insurance cost.

3.Consider Third Party Only cover

A Third Party Only insurance policy is the minimum amount of cover legally required - it is also the cheapest. Generally speaking you should consider opting for this type of policy if your vehicle is of low value. In the unfortunate event of having an accident, any damage to a third party vehicle will be covered but any damage to your vehicle is not. However, if your vehicle is of little value then you may not be too concerned. It may not be worth paying extra for a Fully Comprehensive policy in these circumstances.

4.Maintain a good credit rating

More and more insurance companies are adopting credit scoring techniques as part of the overall calculation of your car insurance premium. By keeping a good credit history you may avoid any additional premium that companies add to your price for having a bad credit score.

5.Buy on the web

Many insurance providers now offer some good discounts for buying the policy over the internet. The theory is that by purchasing your insurance over the web, you are saving the company money by not requiring telesales agent time and incurring free-phone costs. This saving is passed on to you in the form of a discount for buying online. If you have got prices by telephone then check your quote again on their website, you may be surprised at how much cheaper it is.

6.Have a higher voluntary excess

During the quotation process you will be asked how much voluntary excess you want to have. Insurance companies will generally include a compulsory excess amount on the policy but give you the opportunity to increase this if you wish. The more the voluntary excess the lower your premium should be. However, in the event of a claim, you will have to pay a higher amount yourself, up to the total amount of excess on your policy.

7.Reduce your annual mileage

How many miles you do a year is a common question that can affect your car insurance premium. The more miles you do the more your premium is likely to be. Quotation systems and telephone agents will often suggest an amount of miles for you. Try and work out how many miles you will genuinely do. It may be less than the amount suggested. Of course, you should always give an honest answer to this and other questions.

8.Keep a clean driving record

This may be easier said than done. However, by having few or preferably no driving convictions, you can avoid being penalised by increases in your car insurance premium. Getting caught with a speeding fine is often not the only financial penalty you incur. Insurance companies take very seriously all driving convictions and it is usually an important part of their rating process. You can expect an increase in the cost of your insurance if you do get caught with a driving conviction, so it pays to be a safe driver.

9.Keep claim free

This ties in neatly with number 8 above. The biggest factor affecting the cost of your car insurance premium is how many No Claims Bonus Years you have. Full No Claims Bonus is generally considered by most companies to be five years or more, this can give you huge discounts, in some cases up to 75%. By being a safe driver and avoiding potential road accident claims, you can continually benefit by building up your number of claim free years. Every additional No Claims Bonus year you get, the lower your car insurance cost should be. Some companies give you the option of paying a bit more on your premium to protect your No Claims Bonus.

10.Be realistic about the value of your car

Most of us have an inflated view as to what our car is worth. When asked the value of your vehicle during the insurance quotation process, people will often state an amount that is unrealistic and above the real value of the car. People do this as they believe that this is what they will get back from the insurance company in the event of a claim. The reality is that the company will only pay out what the car is worth at the time of the claim and not what you stated for the quote. In fact, by giving a high and unrealistic value, you can increase your car insurance premium as this is often a factor affecting your final price.

11.Remove unnecessary named drivers

Additional drivers on your policy usually mean a higher premium. A lot of people add a number of extra drivers on the policy just in case that person needs to drive the car. However, having all these drivers will push up the cost. By only naming drivers on the policy that will definitely driver the car, you can lower the final cost. If you find that an unnamed driver needs to drive the vehicle then most companies will allow you to temporarily add a new named driver for a small cost.

12.Improve your car security

Theft of and from your vehicle are important considerations when insurance companies calculate your price. Most companies will give you a discount for having better security of your vehicle. An alarm and immobiliser will usually attract a small discount whilst having a tracker device installed may give you a larger reduction. Some companies may insist on having such devices installed on more expensive and desirable cars before they even consider offering you a price.

13.Take an advanced driving test

Although not compulsory, taking an advanced driving test can not only improve your driving skills but also help to lower your car insurance premium. Some companies look favourably on people who have taken the advanced test as it shows commitment to safe driving thus lowering the chance of having a motoring accident.

14.Pay your premium in one go

By paying for your car insurance all in one go, you can avoid paying additional interest charges that would be added on if you opted to pay by instalments. The interest charges can be quite significant, so if your finances allow, you can save a good amount of money by paying for the whole lot up front. In some cases, companies may even give you a small discount for doing this.

15.Get married

Okay so this may seem like a dramatic final way to lower your premium. However, a number of insurance companies offer lower premiums when your named drivers are insured and spouse as opposed to two unmarried drivers. Some companies believe that this shows an element of stability which is a hallmark of safer drivers and give you a discount on this basis.

Copyright © 2004 Accept Direct Limited http://www.acceptdirect.co.uk

Andrew Bowen is the CEO of CityView Media who own and run National Injury Claims, Insurance Compare and Accept Direct Car Insurance.

Article Source: http://EzineArticles.com/?expert=Andrew_Bowen

The Car Insurance Calculation Explained

Different companies will apply different factors to the way they finally arrive at a price for your Car Insurance. Generally speaking though the concept is the same. This involves collecting various bits of information from you and feeding it through a computer system which adds or takes away money depending on the answers you give.

The value put on these answers is decided by the individual Car Insurance company.

For example, some Car Insurance companies may believe that having a speeding conviction increases your chance of having a personal injury accident in the future - therefore they may add money to your price if you have such a conviction.

Similarly, some Car Insurance companies may decide that because you have a lot of No Claims Bonus Years then you are less likely to claim - therefore they may discount your price. All in all there are around 30 different factors that may affect your final premium. Now you can see why you get such a difference in the price of your Car Insurance by going to various companies. Each company will have it's own view of what they believe should be assigned to each answer you give. The Car Insurance quote you get through the Accept Direct website will look at lots of different Car Insurance prices from lots of companies.

That way you can get the best possible price for your profile.

Copyright (c) 2004 AcceptDirect.co.uk http://www.acceptdirect.co.uk

Andrew Bowen is the CEO of Accept Direct Limited. Accept Direct offer car insurance to UK customers through their website http://www.acceptdirect.co.uk

Article Source: http://EzineArticles.com/?expert=Andrew_Bowen

Lease Car Insurance in US States

If you are considering leasing a car you will still need to purchase your own auto insurance policy. When you lease, your vehicle belongs to the lease company. They want to make sure that their investment is covered if something happens to the car. They may also want you to have sufficient liability coverage in case you are at fault in causing an accident. This not only protects you from financial disaster, but it also protects the lease company from financial harm.

So whoever is financing your car will require you to buy both collision and comprehensive coverage for the vehicle. Collision covers damage to the car from an accident with another automobile or object and comprehensive is coverage for losses from something other than a collision with another car or object. They will generally want you to purchase: liability coverage $100,000 per person/$300,000 per occurrence, property liability coverage $50,000 and comprehensive and collision for actual value with no more than $500.00 deductible.

This may be more coverage than you would usually buy, so your insurance expense may be increased. In this case, you would benefit from shopping around to try to get a better rate. Insurance experts say you can nearly always get the higher level of insurance at about the same rate as you are currently paying by getting quotes from a few different insurance companies, seeking out discounts that you qualify for and adjusting your coverage.

In addition to the regular auto insurance, on a leased car, you will have to pay gap insurance. The "gap" is the difference between the amount you owe the leasing company and the amount the insurance company pays out if your car gets totaled. Cars depreciate in value quickly so when a car gets totaled there is usually a gap between the fair market value and the loan amount. The cost of gap insurance is generally rolled into the lease payments. You don't actually buy a gap policy. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a "gap waiver." This means that if your leased car is totaled, you won't have to pay the dealer the gap amount.

Auto Insurance Quotes

Granted, obtaining auto insurance quotes may not actually be considered fun, but they are essential and you want the best deal possible as well. When you are shopping around for auto insurance quotes there are a few things to be aware of before making your decision. For instance, if you have not had auto insurance before it is a good bet that your premium may be higher than some. That may also be applicable if you have a newer model car, as most times those premiums are more expensive.

Another factor that may influence your auto insurance quotes is your driving record. If you have had a few tickets and/or accidents then your premium is likely to be higher than most. Even accidents that have not been your fault will most times count against you for an insurance company. Age is another factor that may make your auto insurance quotes higher as well as your gender. Males usually have a higher quote than females. The reason given is that they may actually spend more time driving than females. Needless to say most times a younger male insurance premium is likely to be the highest.

When you are looking for auto insurance sometimes the quotes or advertisements may seem a little misleading. That may be due to the age of your vehicle, the newer that car the higher the premium. You may also see an advertised quote while you are out obtaining auto insurance quotes that once you actually sit and talk with the agent you find out that the premium seen was on a six month policy, or had very high deductibles. Or even was only available on certain makes or models.

That is one reason that you should try to obtain several auto insurance quotes rather than just going with the first one. You should also keep in mind that a low premium may not be very beneficial to you, it may indicate that there is not ample coverage for your vehicle or that there is an unusually high deductible.

You should also be sure that if you have your car financed that the lien holder is listed as the financial institution where you have it financed, usually they have to be listed or they may not accept the policy. Also when you are getting your auto insurance quotes make sure that your lender does not have a specific amount that must be listed as far as the deductibles and coverage

Car insurance Prices Increase By 5%

Recent figures released show that prices have increased by 5% compared to last year, the main group that has ended up paying considerably more is drivers aged between 40 and 50 who have seen their prices rise by 7%. The average premium for British motorists is now £497.26; however the under-25's have to pay over double this figure and charged an average of £1,255.

Finding cheap car insurance is still attainable despite the increase. One of the best ways to find a better deal is by not being too loyal; customers often accept the renewal quote from the current provider without looking for alternatives. A well known insurer recently showed that Brits were wasting an astonishing £1.9 billion by remaining with their original provider.

Couples can also get a better deal; a joint policy can save a couple around £100. Changing your car plays an important role in the calculating of your motor insurance. All cars are given a rating of 1-20 depending on the cost to repair, the power and the security features. Obviously, a car with a rating of 20 will have a higher premium than a car with a rating of 1. One more thing, although you don't want to leave yourself short, don't throw your money away on extras that you probably will never need.

Whatever deal you find, the increases have made shopping around and comparing various car insurance deals even more important. Shopping online enables customers to find the best deals around and is the easiest and most efficient way of finding the most comprehensive offers. There are ways to reduce the cost of your insurance and in today's financial climate, taking advice can save you hundreds of pounds.

After car insurance prices increased recently, finding the best deal for you is imperative. For the best motor insurance deals, shop online and speed off (not literally!) with cheap car insurance.

Article Source: http://EzineArticles.com/?expert=Karl_Bantleman

Car Insurance Tips to Save You Money

Brits waste thousands of pounds each year on car insurance because they do not understand some of the car insurance tips that could save them money. Car insurance protection is extremely important for the peace of mind of motorists. Car insurance that offers a great combination of coverage benefits at a reasonable price is important.

Car insurance provides a variety of benefits to motorists. Each driver must determine the benefits that are most important to him or her, based on driving habits, needs, and other factors. Some protections are fairly universal, but there are also some specific benefits that may appeal to particular drivers.

Standard car insurance protection includes comprehensive coverage for collisions and liability for situations involving other motorists. These services offer protection to drivers in accidents or situations where the driver is at fault or not at fault. These broad services provide for the typical damage and repair protection a motorist would experience.

There are many other services available for motorists looking for a more customized car insurance protection product. Most car insurance tips include suggestions for certain covers and what benefits they provide. Customized car insurance services include: No claim discounts, courtesy cars, windscreen replacement, emergency roadside assistance, equipment protection, car seat replacement, additional optional benefits to help provide peace of mind to the customer.

No claim discounts are intended to reward motorists with a good history of safe driving. Driving safely is perhaps the most important of the car insurance tips for motorists. Similar to the effect a good credit history has on loan seekers, a good driving history provides less risk to the insurer. Courtesy cars are a great service to allow Brits to meet their driving needs while their car is under repair.

Emergency roadside assistance helps those in need when they are stranded. Roadside assistance costs can be quite expensive, so this protection definitely pays off if needed. Other types of equipment and feature protections are great for motorists wanting to maintain the luxury status with their cars, or looking to protect stereos or equipment. Finally, many optional coves are available to fit the needs of the motorist.

Drivers need to be aware of the great savings opportunities available along with the many standard and customized cover benefits. Along with having a safe driving record, motorists can get better rates by having joint protection. Many motorists fail to take advantage of savings opportunities by combining protection with a live-in mate or spouse.

A car insurance specialist can be a great resource to motorists. A company that can offer great car insurance tips, while assisting Brits with finding the best solutions for their protection needs is a great resource. A specialist can also assist with understand the discounts available as well as the savings opportunities available through setting up a protection plan in the most advantageous way. Car insurance is a necessity for all motorists, but finding the right plan with the right mix of benefits, at a great rate, can be especially satisfying to motorists.

How to Make the Most of Your No-Claims Bonus

Motor insurance premiums can take a pretty big bite out of your pocket when you first start driving. A new, inexperienced driver will pay top price for car insurance - but there are ways to steadily reduce the amount that you pay out in premiums over time.

One of the most important is building up a no claims bonus through your insurer. The longer you can go without making a claim against your policy, the less you'll pay for your insurance premiums over time.

The reason for that is quite simple, really. As a good driver, you're not costing the insurance company money. Going even your first year without an accident or a claim against your insurance can reduce your premiums by 30% in your second year. While there's no standard no-claims bonus, most insurers follow something similar to this:

One year: 30% discount
Two consecutive years: 40% discount
Three consecutive years: 50% discount
Four plus consecutive years: 60% discount

Each consecutive year that you get through without making a claim will reduce your insurance premium further. Typically, you'll reach maximum discount level after five consecutive years of no claims. A discount of 60% is typical, but some insurers may discount it even further.

Holding on to your No Claims Discount

Holding on to your no claims bonus isn't always easy, but there are some ways to preserve the discount to which you're entitled. You may even be able to keep your no claims discount when you move your policy from one insurer to another, as long as you can prove that you're entitled to it.

Bear in mind that third party accidents which are not your fault will usually not affect your discount, as long as their insurance company picks up the costs. Other things that aren't your fault can cause you to lose some or all of your discount, though. If your car is stolen or damaged by events beyond your control and your insurance company picks up the tab, you could lose your discounts.

What's a Step-Back?

Most insurers won't wipe out your no claim discount for a single claim. Typically, they'll step-back your discount, usually by two years. If you have four year bonus, entitling you to a 60% discount, and have an accident for which you make a claim, your discount will probably be cut to the 40% discount you'd receive after two consecutive years without a claim.

Protecting Your Discount

It could be worth avoiding a claim if the costs for repairs aren't much higher than the excess on your insurance policy. If the costs for repairing your vehicle are not much more than what you'd pay when making a claim anyway, it could be more beneficial to just pay and make no claim.

Many insurers will also allow you to pay a little extra to protect your discount, though usually you can only protect your no claims bonus if you've already built up to a full entitlement. Once you've gone six years claim-free, though, you may be able to pay a slightly higher premium to keep your no claims bonus even if there are future claims.

Protected Bonus Cautions

Of course, your discount is applied to your new premium so your no claims bonus only helps a bit. If you've had other claims against the policy, your insurer will probably take that into account when setting your new premium for the year. Your discount will remain intact, but the cost of your insurance could still go up because your premium is higher.

In addition to maximising your no-claims discount, shopping around for motor insurance should be your first priority whether you are a new driver or have just got your renewal documents. To find out which car insurance comparison sites like Tesco Compare and Gocompare quote the most policies, visit http://www.uk-insurance-index.co.uk/car-insurance-companies-1.html

Article Source: http://EzineArticles.com/?expert=Simon_Christopher

How to Make the Most of Your No-Claims Bonus

Motor insurance premiums can take a pretty big bite out of your pocket when you first start driving. A new, inexperienced driver will pay top price for car insurance - but there are ways to steadily reduce the amount that you pay out in premiums over time.

One of the most important is building up a no claims bonus through your insurer. The longer you can go without making a claim against your policy, the less you'll pay for your insurance premiums over time.

The reason for that is quite simple, really. As a good driver, you're not costing the insurance company money. Going even your first year without an accident or a claim against your insurance can reduce your premiums by 30% in your second year. While there's no standard no-claims bonus, most insurers follow something similar to this:

One year: 30% discount
Two consecutive years: 40% discount
Three consecutive years: 50% discount
Four plus consecutive years: 60% discount

Each consecutive year that you get through without making a claim will reduce your insurance premium further. Typically, you'll reach maximum discount level after five consecutive years of no claims. A discount of 60% is typical, but some insurers may discount it even further.

Holding on to your No Claims Discount

Holding on to your no claims bonus isn't always easy, but there are some ways to preserve the discount to which you're entitled. You may even be able to keep your no claims discount when you move your policy from one insurer to another, as long as you can prove that you're entitled to it.

Bear in mind that third party accidents which are not your fault will usually not affect your discount, as long as their insurance company picks up the costs. Other things that aren't your fault can cause you to lose some or all of your discount, though. If your car is stolen or damaged by events beyond your control and your insurance company picks up the tab, you could lose your discounts.

What's a Step-Back?

Most insurers won't wipe out your no claim discount for a single claim. Typically, they'll step-back your discount, usually by two years. If you have four year bonus, entitling you to a 60% discount, and have an accident for which you make a claim, your discount will probably be cut to the 40% discount you'd receive after two consecutive years without a claim.

Protecting Your Discount

It could be worth avoiding a claim if the costs for repairs aren't much higher than the excess on your insurance policy. If the costs for repairing your vehicle are not much more than what you'd pay when making a claim anyway, it could be more beneficial to just pay and make no claim.

Many insurers will also allow you to pay a little extra to protect your discount, though usually you can only protect your no claims bonus if you've already built up to a full entitlement. Once you've gone six years claim-free, though, you may be able to pay a slightly higher premium to keep your no claims bonus even if there are future claims.

Protected Bonus Cautions

Of course, your discount is applied to your new premium so your no claims bonus only helps a bit. If you've had other claims against the policy, your insurer will probably take that into account when setting your new premium for the year. Your discount will remain intact, but the cost of your insurance could still go up because your premium is higher.

In addition to maximising your no-claims discount, shopping around for motor insurance should be your first priority whether you are a new driver or have just got your renewal documents. To find out which car insurance comparison sites like Tesco Compare and Gocompare quote the most policies, visit http://www.uk-insurance-index.co.uk/car-insurance-companies-1.html

Article Source: http://EzineArticles.com/?expert=Simon_Christopher

Buy Car Insurance Online-- A Few Tips to Get You Started

There is a large shopping mall online for car insurance. You can buy car insurance online if you understand the process. You have to accurately report your rating information to an online car insurance quoting website. Your accuracy is critical because the data that you give will determine the rate. Truthful and detailed rating information is a must if you are seriously considering buying car insurance online. The process will educate you about your own insurance and will give you confidence to shop online in the future.

Here’s what you need…

1. Driver License – Every resident relative in the household will have to be rated on the policy. You will need the driver’s license number for every individual that will be rated on the policy.

2. Insurance Declarations Page – This page is mailed to you every time your policy renews. It contains all of the insurance information that you will need to enter on the online quoting website.

3. Car Registration Card – The registration card will provide the vehicle identification number. Every vehicle gets its rate from the vehicle registration number. It will indicate the air bags, anti-lock brakes, and any other safety features. These features give you discounts.

4. Property Insurance Policy – The best rates on car insurance are usually multi-policy rated. You might as well get a rate on your homeowner policy and compare and get the multi-policy discount.

Online Shopping for car insurance requires you to provide all the necessary information. The nice thing about online shopping is that you can do it at home and at your convenience. The quotes are usually sent to competing companies and when you receive the quote you will also have the option to e-mail the agent. Agents are doing business online all of the time and they also find it to be a convenient way to do business.

To view our recommended source for insurance quotes, visit these pages Auto Insurance Quote

Affordable Health Insurance

Home Insurance Quote

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