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How to Insure Your Investment in Cars Properly

Owners of expensive, classic or remodelled automobiles may need to pay extra attention when they are insuring them. Their requirements can be slightly different from a typical family car. However, they should watch out for brokerages and underwriters who claim to be specialist on arranging coverage for certain types of vehicles. Not that there aren’t great specialist brokerages but a few of them make it sound like their services are worth paying an arm and a leg extra.

“It would certainly be cheaper if you could find a policy off the shelf but this may not be possible. However, a good standard policy can be adjusted to meet your needs with additional coverage and endorsements” says Joe Moore of CheapAutoInsurance.net. Here are a few points to keep in mind when you are arranging car insurance coverage for different, better than average and classic automobiles.

  • Original Part Replacement


When you have an expensive automobile you cannot have a policy that will stipulate on repairing your car with aftermarket parts. You just have to make sure that original parts will be used to repair your vehicle should something happen to it.

  • Choice of Mechanics


You should be allowed to choose your own mechanic for the repairs within reason. You should avoid policies that would restrict your choices in any way. Some companies may not necessarily mention that you need to use their approved garages but may try hard to steer you in that direction. Some companies may only be happy to pay you the costs of repairs if it was carried out in their approved garages. In other words, you may have to pay the difference out of your pocket if you were to choose a specific repair shop. Make sure that you can take your car to a good repair of your choice.

  • Agreed Price Coverage


There is a particular problem with the classic cars. Some of them are left to rot in a junk yard and worth almost nothing. But the ones that are lovingly restored and put back to their former glory are expensive. The problem with a standard vehicle insurance policy is that they only pay you the open market value of the car insured. Therefore, you should agree the open market value of a classic car at the time of insuring it in order to avoid disappointments and disagreements when it is totalled. This can easily be dealt with an endorsement on the policy.

  • Modifications


Modifications made on vehicles changes their specifications and increase the risk simply because auto insurers prefer manufacturers’ specifications. The problem is that they cannot verify who carried out the modifications and how good they are. You need to discuss the modifications made on your automobile while arranging coverage for it. You should make sure that the policy mentions the modifications. Otherwise, not only you may not get compensated for the costs of modifications but also your claim may be refused.

  • Be Extra Careful with Cheap Auto Insurance Policies


Not that anything wrong with those polices but they are designed to service motorists with low income and generally an average vehicle. They may have some of the additional conditions you want to avoid as mentioned above. And those underwriters would try to get the repairs done as cheap as possible. If you have never heard of the name of insurer you should do additional research on who and how reputable they are.

Ten practical ways to reduce your car insurance premium

Comfy Motoring
Not all insurance companies are the same they basically are the middlemen in between you the policy holder and the underwriter, the underwriter first needs to understand the type of risk associated with your disclosed profile and to see if you are an ideal policy holder for them to underwrite, if not your premium will be higher than underwriters targeting that particular profile of risk.

So by reducing an insurer’s appraisal of your risk you can reduce the insurance premium you end up paying.

There are of course many factors you either can’t change or can’t change easily for example your postcode if there is a high car crime rate your premium will be higher even if third party.

However there are ways to reduce your risk and basically reduce your insurance burden:-

  1. If you have a garage or a driveway you should use it as it is suggested this will reduce your payments by 4-8%.
  2. Avoid insuring high risk drivers on the same policy as this will add to the cost of the insurance premium.
  3. Avoid getting caught speeding or using your mobile phone as the latter is a serious offence which is reported to add more than 40% to the premium.
  4. Avoid modifying your car from the default manufacturers specification as this results in higher risk.
  5. If you have just passed your test take additional tuition for example PassPlus this will reduce your premium.
  6. Choose a car which reflects your risk if you have just past your test choose a vehicle with a 1.2 litre or perhaps even electric and if you want a little more power earn your way to the new car by building your no claims discount.
  7. Sounds an Obvious one this but don’t crash even if you have protected no claims discount as this will still reflect in a higher renewal.
  8. If you have no security system installed, it would be worth purchasing a professional install of a thatcham approved security device .
  9. Share the risk with the insurer by increasing your personal excess in case of a claim.
  10. Buy a new car which comes with 12 months free insurance could be a good option, but can also be rejected if the driver is deemed high risk.

If you manage your own perception of risk prior to buying a car and use the above tips to reduce premiums will ensure that your Car Insurance costs are kept to a manageable cost.