We all recognise that next to our home, our car is probably one of the costliest single items that we will ever purchase. Most of us develop an emotional attachment to our car at some level. If you want evidence of this, see how you feel about it being stolen, lost or damaged! That’s one of the reasons that we insure our cars. We certainly don’t look for the most expensive insurance but rather shop around for the insurance package that will give us the appropriate cover at the right price. These tips below will help you in achieving the type of insurance that you want, including those who want to know how to reduce car insurance for new driver.
If you want to drive your car on a public road then you have to be in possession of a current insurance certificate. But how much will it cost; well that really depends on the risk that you pose to your insurers. There is therefore an incentive to secure the best possible insurance terms.
- One first step that you can take to reduce the risks to your insurers is to reduce your yearly mileage to under the average yearly mileage. If you do this, you would have become a better risk and therefore you insurers will give you a discount on your insurance costs.
- You should be consciously aware of the significance of your no claims bonus. The longer you have been driving without making an insurance claim, the larger the no claims bonus will be. This is because the insurers see you as a good risk and therefore less likely to make an insurance claim. It is therefore an incentive to maintain a good driving history. The discount can make a real difference to how much you have to pay for your insurance, when it’s time to renew it.
- Be aware that if you acquire 3rd party car insurance, then you will only be covering the third party. That means that if you have an accident, you will be responsible for your own repairs. Consequently, this type of insurance is suitable for those with cars of very low value or near scrap value. So you have to think very carefully about whether this is an option for you.
- Making any modifications to your vehicle will increase the amount of insurance that you will be required to pay because your insurers will see it as an increased risk. An example of such modifications could be high performance audio systems and expensive alloy wheels. It is clear that such additions will increase risks to the vehicle; hence the increase in premiums.
Make your research work for you and get the most appropriate insurance package that will give you peace of mind. But remember it doesn’t have to cost the earth to get good quality car insurance.