Insurance Tips

Insurance Groups List
Get Instant Health Insurance Quotes!

15 Ways You Can Lower Your Car Insurance TODAY

1. Shop around

The difference in price between various companies can be significant. What one company may consider a high risk factor another company may not view as so important. Insurance companies arrive at a price for your car insurance by adding or discounting money after each answer you give to the questions they ask you. Each company has its own rules as to what they consider should increase or decrease your premium. By shopping around you get a better list of prices to compare.

2. Buy a lower group car

One of the important factors that insurance companies take into account is of course your vehicle. There are thousands of different cars on the road so companies divide them up into groups. Most companies will adopt the ABI (Association of British Insurers) group rating. This splits up vehicles into 20 different groups. Generally speaking the higher the group rating for your vehicle, the higher your premium will be. Some companies may also combine your driving experience with the vehicle group to get a better idea of how high the risk is. This is one of the reasons why young drivers should consider buying a lower group car if they want to lower their insurance cost.

3. Consider Third Party Only cover

A Third Party Only insurance policy is the minimum amount of cover legally required – it is also the cheapest. Generally speaking you should consider opting for this type of policy if your vehicle is of low value. In the unfortunate event of having an accident, any damage to a third party vehicle will be covered but any damage to your vehicle is not. However, if your vehicle is of little value then you may not be too concerned. It may not be worth paying extra for a Fully Comprehensive policy in these circumstances.

4. Maintain a good credit rating

More and more insurance companies are adopting credit scoring techniques as part of the overall calculation of your car insurance premium. By keeping a good credit history you may avoid any additional premium that companies add to your price for having a bad credit score.

5. Buy on the web

Many insurance providers now offer some good discounts for buying the policy over the internet. The theory is that by purchasing your insurance over the web, you are saving the company money by not requiring telesales agent time and incurring free-phone costs. This saving is passed on to you in the form of a discount for buying online. If you have got prices by telephone then check your quote again on their website, you may be surprised at how much cheaper it is.

6. Have a higher voluntary excess

During the quotation process you will be asked how much voluntary excess you want to have. Insurance companies will generally include a compulsory excess amount on the policy but give you the opportunity to increase this if you wish. The more the voluntary excess the lower your premium should be. However, in the event of a claim, you will have to pay a higher amount yourself, up to the total amount of excess on your policy.

7. Reduce your annual mileage

How many miles you do a year is a common question that can affect your car insurance premium. The more miles you do the more your premium is likely to be. Quotation systems and telephone agents will often suggest an amount of miles for you. Try and work out how many miles you will genuinely do. It may be less than the amount suggested. Of course, you should always give an honest answer to this and other questions.

8. Keep a clean driving record

This may be easier said than done. However, by having few or preferably no driving convictions, you can avoid being penalised by increases in your car insurance premium. Getting caught with a speeding fine is often not the only financial penalty you incur. Insurance companies take very seriously all driving convictions and it is usually an important part of their rating process. You can expect an increase in the cost of your insurance if you do get caught with a driving conviction, so it pays to be a safe driver.

9. Keep claim free

This ties in neatly with number 8 above. The biggest factor affecting the cost of your car insurance premium is how many No Claims Bonus Years you have. Full No Claims Bonus is generally considered by most companies to be five years or more, this can give you huge discounts, in some cases up to 75%. By being a safe driver and avoiding potential claims, you can continually benefit by building up your number of claim free years. Every additional No Claims Bonus year you get, the lower your car insurance cost should be. Some companies give you the option of paying a bit more on your premium to protect your No Claims Bonus.

10. Be realistic about the value of your car

Most of us have an inflated view as to what our car is worth. When asked the value of your vehicle during the insurance quotation process, people will often state an amount that is unrealistic and above the real value of the car. People do this as they believe that this is what they will get back from the insurance company in the event of a claim. The reality is that the company will only pay out what the car is worth at the time of the claim and not what you stated for the quote. In fact, by giving a high and unrealistic value, you can increase your car insurance premium as this is often a factor affecting your final price.

11. Remove unnecessary named drivers

Additional drivers on your policy usually mean a higher premium. A lot of people add a number of extra drivers on the policy just in case that person needs to drive the car. However, having all these drivers will push up the cost. By only naming drivers on the policy that will definitely driver the car, you can lower the final cost. If you find that an unnamed driver needs to drive the vehicle then most companies will allow you to temporarily add a new named driver for a small cost.

12. Improve your car security

Theft of and from your vehicle are important considerations when insurance companies calculate your price. Most companies will give you a discount for having better security of your vehicle. An alarm and immobiliser will usually attract a small discount whilst having a tracker device installed may give you a larger reduction. Some companies may insist on having such devices installed on more expensive and desirable cars before they even consider offering you a price.

13. Take an advanced driving test

Although not compulsory, taking an advanced driving test can not only improve your driving skills but also help to lower your car insurance premium. Some companies look favourably on people who have taken the advanced test as it shows commitment to safe driving thus lowering the chance of having a motoring accident.

14. Pay your premium in one go

By paying for your car insurance all in one go, you can avoid paying additional interest charges that would be added on if you opted to pay by instalments. The interest charges can be quite significant, so if your finances allow, you can save a good amount of money by paying for the whole lot up front. In some cases, companies may even give you a small discount for doing this.

15. Get married

Okay so this may seem like a dramatic final way to lower your premium. However, a number of insurance companies offer lower premiums when your named drivers are insured and spouse as opposed to two unmarried drivers. Some companies believe that this shows an element of stability which is a hallmark of safer drivers and give you a discount on this basis.

About the Author

Andrew Bowen is the CEO of CityView Media who own and run
Pinstripe Insurance

Is beneficiary information included on renewal paperwork they send to owner of policy?

Need annual insurance information on ex to make sure he is continuing life insurance with me listed as beneficiary (for minor child). He insists that they don’t send him that info so he can’t give me dated info that there have been no changes to policy. I have group policy so I don’t get that information but his is private and purchased by him.

No. None of my life insurance policies list beneficiary information or face value information on the premium notices I receive. The notice simply tells me how much is due and on what date for the policy to remain in effect. It is similar to a bank statement since it pays dividends which remain with the policy (or I could withdraw) and that information is required by law to be declared for tax purposes. Is this requirement that he provide life insurance listing you as beneficiary in your settlement agreement? Are you SURE? The reason I ask is when I got divorced, my ex had the option of taking over the payments on our son’s insurance or dropping the policy. I was under NO obligation to continue the insurance since I did not have primary custody. Child support, yes. Medical insurance, yes, for a limited time. Maintenance, yes, for a limited time. Life insurance coverage, NO, my ex could either transfer the existing coverage or drop it. I have NO idea which option she chose. I turned over the policy papers to her and notified the insurance company of the change including a copy of the divorce papers. All of this was completely spelled out in the settlement agreement. The person who pays the premiums, the one who “owns” the policy specifies the beneficiary and can change it at will, at any time of the day or night simply by notifying the insurance company in writing. Most insurance policies require the change be notarized so they can be sure of the identity of WHO initiated the change in beneficiary. Otherwise, it would be very easy for anyone to forge a signature and change the beneficiary and then arrange for a convenient “accident” to happen to the insured. At least that is what I had to do to change the beneficiary on my life insurance from the woman who is now my ex-wife to my son. I have arranged for my ex to receive something from my estate when the time comes, but the bulk including anything from my life insurance goes to my son and his heirs.

United Solutions Snap and Lock Plastic File Tote, Black $13.99 Whether you need to organize files for easy access or you want to store the old ones, this durable file box from United Solutions will handle both tasks. Can accommodate hanging files, letter and legal size documents. The streamlined design of the patented Snap and Lock lid, keeps your valuable documents safe and secure. Multiple file boxes stack nicely and slide effortlessly. Black file box with …

United Solutions Plastic Office File Tote, Granite $15.99 Keep all your important documents organized and secure in one place with this heavy-duty plastic office file tote from United Solutions. Can accommodate both letter and legal size papers. The molded handles on both sides make it easy to transport too. Granite color compliments both home and office environments nicely. Get multiple totes and start organizing. Item No.OF0001….

I HEART FLO Coffee Mug $15.95 Get your big tricked out mug!…

The Incredibles [UMD for PSP] $14.99 Animation studio Pixar (creators of Finding Nemo and Toy Story) reigns supreme: The Incredibles is another stunning example of their inspired storytelling and technical prowess. In a world where superheroes have been outlawed, the former Mr. Incredible (voiced by Craig T. Nelson) and Elastigirl (Holly Hunter) struggle to raise a family (with a teenager daughter who turns invisible and a super-spee…

Short Time [VHS] $14.98 …

Rainmaker [VHS] $1.25 When viewed from a cranky perspective, this by-the-book David vs. Goliath story doesn’t offer any surprises, and it’s a bit sad to watch director Francis Coppola (who also adapted John Grisham’s bestseller) squandering his once-glorious talent on such conventional Hollywood fare. In a more charitable light, however, there’s great pleasure to be found in Coppola’s intelligent, no-nonsense handling …

Groundhog Day (15th Anniversary Special Edition) [Blu-ray] $9.24 Bill Murray does warmth in his most consistently effective post-Stripes comedy, a romantic fantasy about a wacky weatherman forced to relive one strange day over and over again, until he gets it right. Snowed in during a road-trip expedition to watch the famous groundhog encounter his shadow, Murray falls into a time warp that is never explained but pays off so richly that it doesn’t need to be. T…

Groundhog Day (Special 15th Anniversary Edition) $8.94 Bill Murray does warmth in his most consistently effective post-Stripes comedy, a romantic fantasy about a wacky weatherman forced to relive one strange day over and over again, until he gets it right. Snowed in during a road-trip expedition to watch the famous groundhog encounter his shadow, Murray falls into a time warp that is never explained but pays off so richly that it doesn’t need to be. T…

The Incredibles (Two-Disc Collector’s Edition) $12.90 Disney Presents a Pixar Film, THE INCREDIBLES. From the Academy Award(R) winning creators of FINDING NEMO (2003 Best Animated Feature Film) comes the action-packed animated adventure about the mundane and incredible lives of a house full of superheroes. Bob Parr and his wife Helen used to be among the world’s greatest crime fighters, saving lives and battling evil on a daily basis. Fifteen years l…

Prevacid 24HR Caps 42-Count $16.49 Prevacid is used to treat and prevent stomach and intestinal ulcers, erosive esophagitis (damage to the esophagus from stomach acid), and other conditions involving excessive stomach acid such as Zollinger-Ellison syndrome. Prevacid decreases the amount of acid produced in the stomach….