Here are our top tips on reducing your insurance premium. Also, we provide solutions in the article which will help you to get cheap car insurance. Just follow the links provided in the article apply for it to get a reduction in car insurance.
1. Use a price comparison site
Essentially, insurance underwriters arrive at a price for your specific quote by adding or discounting monetary amounts after each answer you give to the questions they ask you.
The underwriters for these companies all have different views on what they consider to be a good or bad risk. This is coupled with the type of business the firm is in the market for.
Therefore, it’s prudent to spend a little time shopping around for the best quote. By far the easiest way to do this is using a price comparison website. Rather than visiting each insurance company online, a comparison site enables you to enter your details just once and they will then do the hard work for you, showing you the cheapest quotes across the market.
The majority of these comparison sites generally have very similar lists of providers, although some may have unique schemes given to them by insurers that contain custom rates for their site, so it may be a good idea to try a few different comparison sites.
2. Purchase a lower insurance group rated vehicle
With over 350 different car models to buy in the UK , rating each one would prove impractical for underwriters. Instead, they divide them up into 50 groups; with group 1 considered being the least amount of risk and group 50 the highest risk.
Some of the risk elements that define car insurance groups include:
- Engine size
- Vehicle value
- Safety features
- Cost of replacement
- Cost of parts and labour to repair the car
It also follows that the lower the group rating, the lower your premium is likely to be. So, before buying your new car, always check to see which insurance group it falls into. It can have a dramatic affect on your running costs.
3. Consider a different level of cover
It is a legal requirement to have insurance if you wish to drive a vehicle on the road in the UK.
The absolute minimum level of cover you need is called Third Party Only (TPO). If you are unfortunately involved in an accident, this will legally cover you for liability against injury to other people and damage to their property.
However, the big downside here is that any damage to your vehicle will not be covered, including a write-off where you car cannot be repaired and is of junk value only.