Car insurance premiums vary widely in what has become a seriously competitive market. Here are some tips on the measures that you can take to reduce your car insurance premium.
Car insurance policies, like all insurance policies, are calculated according to the potential risk posed to the property insured ? in this case your car. There are several measures that you can take to reduce the risk to your car, and in the process reduce your car insurance premium.
Firstly, steer clear of points on your licence. Speeding penalties, for example, will result in a hike in your insurance premium - usually around 5% for the first offence, and a hefty increase for two driving offences at an average of around 20% when combined. One of the worst (and most easily avoided) is to be caught using your mobile phone when driving, as this offence will pretty much double the cost of your existing insurance premium.
Drivers under the age of 25 are a high risk category in the eyes of the car insurance companies. To reduce this risk, try adding an older driver with a good record to the insurance policy who will not drive the car often. This is viewed by many insurance providers as reducing the average risk to the car, and so can help to make your policy less expensive. Be very clear, however, that older driver should never front for a younger driver (that is, to claim to be the main driver) as this is an offence, and will also result in the policy becoming invalid in the event of an incident.
The power of the car is relevant in determining insurance costs for drivers of all ages, and this is especially so for younger drivers. Powerful cars pose an additional risk of collision ? especially in the hands of a young driver - and hence go towards ensuring a considerably higher premium. One of the big car insurance companies like The Co-operative Car Insurance will be able to talk you through this before purchasing a car, so that you are forewarned as to how much it will cost to insure that particular model.
It is often well worth fitting additional security devices. Fit a car alarm if you dont already have one, and consider an engine immobilizer as an addition to your car, as these reduce the risk of theft and can therefore substantially lower your premium.
Be aware that performance modifications to the car, such as chipping the engine management system for increased power output, will definitely increase the cost of car insurance.
The Co-operative Car Insurance is a good site at which to start to get an idea of what is on offer, along with price comparison sites as a quick way of looking at lots of different car insurance providers.
Tory Schreacke is the author of this article. Make sure you have the right home insurance and car insurance policy with The Co-Operative Insurance.