Auto news headlines

Car Insurance – How to Lower Your Premiums (part 2)

As mentioned in the previous article, your no claims bonus will play a large role in how much your car insurance premiums will cost you; in some cases this can result in savings of anything up to 75%.

Essentially, the no claims bonus scheme was put in place to reward careful drivers, who did not cost their insurers anything. So, for every year that passes and you manage to not make a claim on your insurance, you will be rewarded with another years of no claims.

Obviously the longer you maintain your no claims record then the more savings you will be able to reap with regards to insurance premiums.

It’s important to note that when comparing quotes, the size of the insurers no claims bonus should not be the sole reason for choosing that insurer as other factors should be taken into consideration.

Not mentioned yet, but another major factor is whether or not the car you insure is modified, or whether you intend to add any modifications. Such modifications include anything from performance enhancing features to racing stripes.

The simple fact here is that if you’re insuring a modified car, your going to pay more than you would normally. The main reason for this is that statistically, modified cars are involved in more car accidents than their unmodified counterparts.

Moreover, many insurers won’t even consider processing a quote for modified cars, resulting in less competition thus higher average premiums.

Still on the topic of how vehicles can affect premiums, is another important factor known as insurance ratings. This is a numbering system, generally ranging from 1-20, imposed by insurers to help grade how much insurance for a particular vehicle will be.

Basically, the higher the number, the more expensive the car will be to insure. The rating on each car is mostly based upon its engine size and weight; the cost of replacement parts and how likely it is to be stolen also play a part though.

This leads onto where you choose to park your car every night, which when trying to find cheap car insurance should optimally be on a drive, or more preferably a garage. You are likely to find that if you park on the street your car insurance premiums will be steeper, as car insurance companies consider this more of a risk.

Leave a Reply

You must be logged in to post a comment.