CAR INSURANCE
Drivers are being hit with
big increases in the cost of car insurance, even if they have
never made a claim. According to the Automobile Association,
the average comprehensive premium has gone up by more
than 20% in the past year.
Here in Northern Ireland, we traditionally have paid more for
insurance, but across the board motorists can expect to see a sharp
rise in the next two years, and that will hit younger drivers even
more.
A recent survey showed that most people are already paying over
the odds for their car insurance. The survey found that about 70%
of people can save money on their premiums - and the average saving
is 30%. Yet only about 2 out of 10 people look for cheaper cover
when they renew their policies.
Motorists do not have to put up with the increases. You can usually
find identical cover elsewhere at a cheaper price.
But there are steps you can
take to cut the cost of cover.
Switch
Insurer
Secure your car
Increase your excess
Cut your mileage
Buy a popular car
Restrict your claims
Insure with owners' club
Check insurance details
Restrict number of drivers
Change the main driver
SWITCH INSURER
The best way to cut the cost of cover is to switch insurers. Call
several telephone based insurers, including some of the Direct
companies. If you have access to the internet, you can also get
online quotes from many big insurers.
Younger drivers, people with
risky occupations, and those living in high-crime areas, will
probably be better off going to a local
broker.
Car insurance can be cheaper for drivers overseas. Although you
are not able to buy cover abroad, the European Union is studying
ways of introducing a single market for financial products.
SECURE YOUR CAR
Fitting your car with
security devices may cost money but the expense can often be
recouped through lower premiums.
An immobiliser
costs between £75 and £100 but should knock about £50
a year off the insurance for a Ford Sierra.
INCREASE YOUR EXCESS
Most policies insist
you pay the first £100 of any claim.
But you can ask for a higher excess and qualify for a discount.
For example, by increasing the excess to £250, you could
save about 10%. But the savings could be wiped out if you made
a claim.
CUT YOUR MILEAGE
The fewer miles you drive, the less likely you are to have an
accident - and your insurance premium will reflect your lower usage.
For example, if you drive fewer than 3,000 miles a year, your insurance
could be cut by 10%
BUY A POPULAR CAR
British made cars, such
as Ford Mondeos, Vauxhalls and Astras are cheaper to repair
and therefore insurance premiums
are lower.
For example, insurance for a 1.8 litre Ford will cost around £100
less than for a 1.8 litre BMW 3 series.
RESTRICT YOUR CLAIMS
When you make a claim, you have to work out whether it is worth
losing your no-claims bonus. Insurers reward drivers who do not
make claims, with up to 70% off the premium.
INSURE WITH OWNERS’ CLUB
People
who drive classic or sports cars, should get quotes from insurance
schemes run
by clubs for enthusiasts.
Most clubs negotiate
cheap deals with specialist insurers. Affinity group insurance
can quote competitively eg Age Concern, National Trust, Farmer’s
Union for example.
CHECK INSURANCE DETAILS
Make sure you are not paying for features you will not use. For
example, many policies automatically add on and charge extra for
overseas cover.
Oddly, comprehensive cover can be cheaper than third party cover,
which does not pay out for damage caused to your vehicle in an
accident. Records show that motorists with third party cover are
riskier drivers.
Make sure that you know exactly what the vehicle will be used
for. If it is purely for leisure, say so.
RESTRICT NUMBER OF DRIVERS
Policies are cheaper if only
a husband and wife drive the car because they are less likely
to claim. Insuring children can be expensive.
CHANGE THE MAIN DRIVER
Your
policy may be cheaper if the car is insured in a woman’s
name. Particularly if a member of your family is employed in a
risky occupation. However, be careful. You must not give fraudulent
or misleading information. The person who drives the car for the
majority of the time must be named as the main driver, or any future
claim under the policy may not be covered.
British Insurance
Brokers Association (BIBA)
Tel: 020 7623 9043.
|
