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:-
- If you have a garage or a driveway you should use it as it is suggested this will reduce your payments by 4-8%.
- Avoid insuring high risk drivers on the same policy as this will add to the cost of the insurance premium.
- 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.
- Avoid modifying your car from the default manufacturers specification as this results in higher risk.
- If you have just passed your test take additional tuition for example PassPlus this will reduce your premium.
- 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.
- 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.
- If you have no security system installed, it would be worth purchasing a professional install of a thatcham approved security device .
- Share the risk with the insurer by increasing your personal excess in case of a claim.
- 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.