According to the Money Saving Expert, the price of car insurance has risen by as much as 16% in the 12 months since December of last year.
Since there is no way around the need for some level of motor insurance – unless you are prepared to break the law – here are some top tips on making savings in the cost of the premiums you pay:
Level of cover
- the law requires that you have a minimum level of third party car insurance – to cover claims from third parties who are injured or have their property damaged as a result of your driving;
- although this represents the lowest level of cover – against the minimum number of risks – it is not invariably the cheapest, since some insurers might take the view that your decision to arrange comprehensive insurance reflects a generally more careful approach to driving;
- when assessing the risks and your likelihood of being involved in an accident that leads to a claim, insurers naturally take into account your past history of road traffic accidents, motoring convictions and claims;
- the lesson here, therefore, if to keep as clean a record as possible in order to secure the most competitively priced motor insurance premiums;
- but all is not lost if you already have a motoring conviction or two – although it might be more difficult to find the insurance if you have any type of criminal conviction, at GSI Insurance we have produced a guide discussing how you might still secure competitively priced motor insurance;
No claims discount
- no claims discounts may be responsible for considerable reductions in the cost of your car insurance;
- the discount accumulates every year that passes without your needing or choosing to make a claim, so you need to ensure that the no claims discount to which you are entitled is reflected in each annual renewal notice or taken into account if you choose to switch motor insurers;
- a popular and common way of reducing the cost of your motor insurance premiums is to agree to a voluntary excess in addition to any compulsory excess which the policy may demand;
- excesses are generally used to help keep the costs of insurance premiums down by encouraging drivers to share the risks of claims for repairs following an accident – the greater the excess, the greater your share of the risks and the less shouldered by your insurer;
- the longer you are on the road and the more mileage you cover in any one year, the greater your chances of having an accident and needing to make a claim, argue many insurers;
- if you agree to restrict your mileage to an agreed maximum, therefore, you might qualify for a reduction in the price of the premiums you pay;
- the cost of motor insurance is also directly related to the security you are able to provide against theft, attempted theft and vandalism;
- measures which might help you to earn discounts, therefore, may include immobilisation devices, intruder alarms or making provision for the off-road parking or garaging of your car, rather than leaving it parked in the street.
With the cost of motor insurance seemingly increasing each year, opportunities for making savings are likely to be welcome. Hopefully, some of these top tips may help you to do just that.
Finally, for GSI Insurance customers, we offer a number of discounts.