How To Cut The Cost of Car Insurance

Thur, August 21, 2008

Buying car insurance is a necessary nuisance for most. However a little time and effort can save motorists a small fortune per year. Here is Times Money's guide to getting the best deal:

Shop around

A few hours comparing deals online can save you hundreds of pounds whether you are renewing or buying for the first time.

Quote massage

Your job could have more than one description. For example, a “solicitor” is also a “lawyer”. Testing different legitimate job descriptions, or "quote massaging", when you apply for cover could save you tens or hundreds of pounds.

Add a second named driver

Adding an older second named driver – a parent, for instance – to your policy could save younger drivers a further 15 per cent. There is no need for this person to ever drive your car.

Don’t pimp your ride

Research from BeatThatQuote.com, a comparison website, indicates that modifying your car – lowering the suspension or adding a rear spoiler, for instance – could add up to 171 per cent to the cost of cover.

DO protect your ride

Insurers bump up prices if they think your car is vulnerable. If possible, park your car in a garage or, failing that, driveway. Also install a Thatcham-approved alarm and immobiliser.

Don’t claim under £500

Most claims knock two years off your no-claims discount – wiping out very substantial savings of up to 70 per cent in your policy price. Experts advise drivers to avoid claiming for any damage under £500.

Consider bundled insurance

Some new cars come with free insurance for a year or more. This could be a significant selling point. But don’t fall into the trap of renewing the bundled cover when it expires without comparing deals.

Take a course

Completing a Pass Plus course could cut your premiums – sometimes by 30 per cent or more, covering the course’s cost of around £100 to £150.

Source : http://www.timesonline.co.uk/