Insurance providers have to consider all sorts of criteria in order to determine how much of a risk a person might present and set their premiums accordingly. So for motorists who don’t want to pay more than they need to when they are taking out car insurance, what can they do to cut their costs yet still make sure they have adequate protection?
The best way to do this is to consider exactly what factors car insurance providers look at when they are determining how much to charge you. Of course, some of these are out of your control, but you might be surprised to realise exactly how much influence you do have over your premiums.
Where you live can play a big part in determining how much risk you might present. If there is lots of recorded crime in your postcode, then the chances of your car being damaged are – on paper at least – relatively high. So if you can possibly do so, move to a place that offers a low crime rate.
You might also want to think about where you leave your car when it is not being used. If you have the option of parking your vehicle on a driveway, in a serviced car park or in a garage, the chances of it being stolen are much lower than if it is left on the road.
Of course, a car is there to be used, but you might find a car insurance provider is likely to offer you a lower premium if you have a fairly low mileage. After all, it is inevitable that a person who drives infrequently is less likely to be involved in an accident than a motorist who is on the road all the time. So moderate your car usage and make sure your cover provider knows that you aren’t a regular driver or someone who clocks up long distances.
Regardless of where you live, work or park your vehicle, the risk of car crime does exist, so even if you do move to a place with relatively low crime rates, the possibility of theft or vandalism is not eliminated completely.
Therefore, you might find it worthwhile to go a step further and make sure your car is kitted out with all the latest security devices. Installing gadgets such as a car alarm and an immobiliser will show your insurer that you are actively trying to deter criminals and keep your vehicle safe.
Another good way to bring your car insurance premiums down is so obvious that it might easily be overlooked. That is driving sensibly and obeying the rules of the road. If you have clocked up motoring convictions for offences such as speeding and drink-driving, your insurer may start to view you as a liability and set your premiums with this in mind.
By contrast, if you have a clean driving licence and a history of not making claims, your cover provider will look at you in a positive light and charge you less.
So while you might not be able to do anything about perceived risk factors such as your age, there is plenty more you can do to bring down the cost of insuring your car.