Young drivers could save money despite car insurance price rises
Confused.com is urging drivers to look for ways to reduce their car insurance in anticipation of new gender rules. Under the new rules, agreed by the EU last week (1 March 2011), insurers will no longer be able to offer differently priced insurance based on gender, with effect from 21 December 2012. This could be bad news for women drivers who can currently benefit from reduced premiums. However, Confused.com can soften the blow by providing tips to help reduce your insurance costs both before and after the 2012 changes:
How cheap your car insurance is dependent on a number of factors -
1.What car you drive
2.What security you have
3.Who owns and drives your vehicle
4.How you use your car
5.The type of cover you choose
Top tips if you're looking for cheaper car insurance:
1. Choose a car you can afford to run - the higher the car insurance group, the higher the premium.
More expensive cars with larger engines, sports models, additional features etc will be more expensive to insure than cars with smaller engines and more standard extras.
2. Make sure the car is fitted with up-to-date security systems.
Most modern cars come pre-equipped with an alarm, but if you drive an older vehicle, getting an alarm professionally fitted will help secure your car and could result in cheaper car insurance.
Since 8 October 1998, all new UK cars have had immobilisers fitted as standard, but if you drive an older car, getting an immobiliser professionally fitted will help secure your car and could mean cheaper car insurance.
3. Be clear on who owns and drives your vehicle.
When shopping for cheap car insurance, quotes can be higher if the owner of a vehicle is not the same person as the registered keeper. For example, if you drive a company car or if you own the car but your children drive it. This is particularly important when looking for a quote online as most internet quotations require the owner and registered keeper to be the same person (or partners). Although insurance for young people is expensive, adding them on to a parent's policy can also prove costly.
4. Tell your insurance provider how you use your car.
When compiling cheap car insurance quotes, insurers rate your car under one of four categories of use. Cars which only have social, domestic or pleasure-related uses tend to qualify for cheap car insurance as the less the car is used during peak hours, the lower the risk and therefore the premium will be lower than if the car was regularly being used for commuting.
Social, domestic and pleasure
This covers drivers for normal day-to-day driving, such as a visit to family, friends or to go shopping.
Commuting
This covers a drive to and from the normal place of work and includes travelling and parking at a railway station
Business use
This covers using your car in connection with your job, such as driving to different sites away from your place of work.
Commercial travelling
This covers the car to be used for such things as door-to-door sales.
5. Get the type of cover and the mileage correct when filling in your details.
It is important you buy the right type of cover for your needs, otherwise the insurance provider might not pay out if you need to make a claim. The different types of cover include:
Third party
Third party insurance covers any claim by third parties but does not cover damage to your car. This is good budget car insurance but you will have to pay to repair your car yourself.
Third party, fire and theft
Third party, fire and theft covers fire and theft of the car and any claim by third parties.
Comprehensive
Comprehensive car insurance covers accidental damage to the vehicle in addition to fire and theft and any claim by third parties. It is more expensive than budget car insurance covering only third parties.
6. The higher the voluntary excess, the lower the premium is likely to be.
The excess is the first part of a claim that is paid by you. You can get your money back if the claim is deemed 'non-fault' by your insurer. By increasing the amount you will pay in voluntary excess, you can lower your premiums , But do remember you will then have to pay this amount in the event of a claim.
Gareth Kloet, head of car insurance at Confused.com, said: "Tempting as it may be to stick with your existing insurer, remember that there's no reward for loyalty when it comes to car insurance. Shopping around online to compare prices from a range of car insurance providers can help you to find a lower quote. Moving to a new provider is straightforward and can save you a considerable amount of money."