Car Insurance Tips

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Our first tip does not be lured into paying for your car insurance monthly. Although it seems cheaper or more manageable, it’s not. Typically, you will be charged around 24% interest, thereby adding £ 50 to the average car insurance cost.

Just over 50 percent of the 26 million insured drivers in Britain pay monthly, and cumulatively this means £ 624 million is being handed to the insurance industry in unnecessary payments. Even if you pay on your credit card, taking two or three months to pay it off, it will still be more economical than spreading it over a year at 24% interest.

Secondly, do not automatically accept a renewable quote, even if you have a substantial no-claims bonus. There is no such thing as customer loyalty in the insurance industry. Every one of the big companies targets new clients by offering large discounts, some offering half-price deals compared to those for existing customers for exactly the same level of cover. Try applying as a new customer to your existing insurer; you’ll soon see how much the difference is.

Thirdly, try not to make a claim on small amounts up to £ 500 because you’ll only have pay a higher premium the year after when your policy is up for renewal. In some cases, an insurer may not cover you at all if you have made too many claims.

Fourthly, set your level of excess at as high a level as you can afford. This can also bring your premium down significantly.

Fifthly, the majority of people do not realize how job titles can affect insurance premiums. Some occupations are not well thought of by insurers – journalists, estate agents, and sales reps to name but a few.

You may be able to reduce your premium by being more accurate about your job title. A journalist, for example, may pay £ 600 but a news editor only £ 576. You must, however, tell the truth. Any inaccurate or none disclosed information would invalidate any claims you make.

Sixthly, security devices can also reduce your insurance premiums. Some companies that fit car security devices can calculate for you how their car security products like vehicle tracking will affect your premium if you have them fitted.

Next, avoid customizing or modifying your car because around half of all insurers will not provide insurance cover and any that do will certainly charge more. Do not pimp your ride if you want to keep the cost down.

Another temptation is for young drivers to reduce their promotions by supplying details of their parents’ address in a rural area rather than putting down their correct city based address. Always provide an accurate address. If insurers find you providing another address to qualify for a lower premium you can be blacklisted and it will also completely invalidate your claim.

Finally, try adding another driver with a good driving history to your policy. For some reason, adding an experienced driver onto your policy can actually lower the total premium.

Source by Michael Challiner