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Car Insurance – How to Lower Your Premiums (part 1)

Car insurance is one of those things that we are extremely grateful for should we have a run in with another vehicle and be required to front the bill, but loath paying the sometimes astronomical premiums for.

As with the majority of financial products though, there are many steps that can be taken to help reduce their monthly or annual cost.

With regards to car insurance there are certain factors and things you can do that will affect your insurance premiums, some more than others. Notably, comparing insurance quotes; the cheaper, more economical and secure the car is the better. Finally (if applicable) the larger your no claims bonus is the better.

So, to begin with, when on the market for insurance quotes, by far the easiest way to do this is online. This provides you with the ease of doing so in your own home and there is a wealth of comparison websites out there that will return quotes from the majority of UK insurers.

When purchasing a car direct from a dealership it’s very tempting to get roped into insurance the salesman is offering; however this should be avoided, as more of often than not it will be far from the best deal.

Lastly, when it comes to renewing your insurance, make sure you have checked online to ensure you are getting offered a decent deal, as chances are you won’t be.

The second major factor as stated originally is the specifications of the car being insured. The most obvious of these is that it’s going to cost a lot more to ensure a brand new Porsche then it is a second hand Corsa, as the former is much more expensive and thus will cost the insurer more to repair or replace.

At the same time though, if your car is deemed too cheap, say anything under £1000, then insurers may be concerned that the car may turn out to be unreliable and this may increase your premiums.

Again, with regards to your vehicle, most people know that the larger the engine and the faster

the car, the harder it will be to find cheap car insurance. However, what many may not know is that car insurance companies also take the weight of the car into consideration when processing a quote, so the lighter your car, the more your car insurance may be.

Car Insurance – How to Lower Your Premiums (part 2)

As mentioned in the previous article, your no claims bonus will play a large role in how much your car insurance premiums will cost you; in some cases this can result in savings of anything up to 75%.

Essentially, the no claims bonus scheme was put in place to reward careful drivers, who did not cost their insurers anything. So, for every year that passes and you manage to not make a claim on your insurance, you will be rewarded with another years of no claims.

Obviously the longer you maintain your no claims record then the more savings you will be able to reap with regards to insurance premiums.

It’s important to note that when comparing quotes, the size of the insurers no claims bonus should not be the sole reason for choosing that insurer as other factors should be taken into consideration.

Not mentioned yet, but another major factor is whether or not the car you insure is modified, or whether you intend to add any modifications. Such modifications include anything from performance enhancing features to racing stripes.

The simple fact here is that if you’re insuring a modified car, your going to pay more than you would normally. The main reason for this is that statistically, modified cars are involved in more car accidents than their unmodified counterparts.

Moreover, many insurers won’t even consider processing a quote for modified cars, resulting in less competition thus higher average premiums.

Still on the topic of how vehicles can affect premiums, is another important factor known as insurance ratings. This is a numbering system, generally ranging from 1-20, imposed by insurers to help grade how much insurance for a particular vehicle will be.

Basically, the higher the number, the more expensive the car will be to insure. The rating on each car is mostly based upon its engine size and weight; the cost of replacement parts and how likely it is to be stolen also play a part though.

This leads onto where you choose to park your car every night, which when trying to find cheap car insurance should optimally be on a drive, or more preferably a garage. You are likely to find that if you park on the street your car insurance premiums will be steeper, as car insurance companies consider this more of a risk.

Car Insurance – the Crash-proof Car

The company Volvo are taking their years of car safety experience to the next level by coming up with a virtually crash-proof car.

In 1959, Volvo created the three-point safety belt and in 1987 they brought us the airbag, but Volvo are still trying to out-do themselves and hope to have the crash-proof car with us by the year 2020.

For the past 50 years, Volvo have spent their time working on making cars safer for both drivers and passengers and now engineers at Volvo’s Gothenburg research centre in Sweden are now working on a car that will prevent crashes from even occurring.

Volvo has said that they hope to change attitudes in the future and make it unacceptable to think car crashes are just one of those things.

When these cars make it into the shops, it is possible that your car insurance may not be as expensive, as you will be driving a car that is a lot safer. If this is the case then come the year 2020 this Volvo will be the car to get if you are looking for cheap car insurance.

This intelligent car has airbags, sonar sensors, complex radar, and GPS tracking. All of this combined with the fact that the car will be made out of strong and lightweight materials will provide a lot of protection, meaning that this will add to the suggestion that your car insurance could be cheaper, even young driver car insurance may be cheaper and parents would no doubt feel a lot happier about their child driving around in this car.

This car will be able to monitor other vehicles as well as watching for any oncoming hazards and, most impressive of all; will be able to take over the cars controls so that it can manoeuvre you out of the way of danger. The car is said to have a large bumper around the car that will be able to gather information electronically about how safe the vicinity is and can then take action, all before the driver at the wheel has had chance to notice that there is anything wrong.

This crash-proof car may make your car insurance less expensive in the future.

This is the car to get in 2020 if you are looking for cheap car insurance .

Even young driver car insurance may be cheaper and parents would definitely feel better knowing that their child was driving around in this car.

Car Insurance for Young Drivers

Passing your test is a very happy time for a new driver as you can then find out about the freedom that driving can give you. However, before you can get to sample the perks, you have to get your car insurance sorted.

Car insurance companies quote high prices for young drivers as they are statistically more likely to have an accident and be a more impetuous driver. As well as this, young drivers are more likely to be victims of vandalism, theft and fire.

In order to get out on to the open road quickly and cheaply, being added to your parents’ car insurance policy is the best option, as long as they don’t drive luxury cars. If your parents already have an ‘any driver’ policy then the process will be even faster but only if the ‘any driver’ policy small print doesn’t exclude new or young drivers.

If the option of being put on to your parents’ policy isn’t available to you or you are fortunate enough to have a car of your own, then you’ll have to buy your own policy. This is likely to cost you the same price as your first car so in order to keep the price as low as possible there are a number of things that you can do:

– Get ‘third party’ cover only. This is the minimum level of cover that the law allows.

– By getting ‘third party’ cover and a cheap, small car with a low insured value, you’ll only lose the value of the car if it is irreparable or damaged.

– The fewer penalty points you get and accidents that you have, the lower your premiums.

– Avoid buying luxury cars as young driver car insurance is extremely high for these cars.

– Don’t drink and drive. A young person with a drink-driving record with find it almost impossible to get insured and if you are lucky enough to find it then it will be extortionate.
Another way to get cheap car insurance is by doing extra training. There are two courses that you can do after you’ve passed your test that help improve your driving, either Pass Plus or an Advanced Institute of Motoring course. These courses are looked favourably on by insurers and they could lower your premiums.

In order to get on to the road quickly, you can be added to your parents’ car insurance policy.

Avoid buying luxury cars as young driver car insurance is extremely high for these cars.

You could get cheap car insurance by doing extra training.

How to Get Cheap Car Insurance For Teenagers

The cruel reality when it comes to car insurance is that teens are going to have to pay extremely high premiums. This happens because teens are more likely to get in an accident because they have limited experience in driving. The good news is that there are things you can do to get cheap car insurance.

The first thing you need to do when looking for car insurance is to not settle for he first quote you are given. The best way to save money on insurance is to go around to many different companies and get quotes from each one. Often times the first company you get a quote from is actually one of the most expensive. So, ask around and do not be in a hurry and you will save money.

If you are about to purchase a car you should look into a number of factors which will help keep your premium down. If the car you are purchasing has anti-lock brakes, an anti-theft device, and air bags you will see the premium go down. If you have a safe car that has limited risks on it, you will be required to pay less because it is cheaper to insure.

Companies often times offer a no claims bonus where you earn discounts on your premium over time for not making any claims. This is a great long term solution to reducing your car insurance as a long driver. The typical discounts that you receive start around 30% off your premium which can save you a good amount of money in the long run.

If you are looking at getting a used car it is wise to avoid cars that have modifications. Insurance companies typically charge you more on your premium if there have been modifications done to the car which will of course cost you more money.

If your car has an alarm professionally installed into it, you can look at about a 10% reduction on your premium. Insurance companies like car alarms because they help ensure that your car will not be stolen which will save them a lot of money.

If you do not drive very much and your annual mileage is low, you could be on your way to receiving a mileage discount. The less miles you drive the fewer opportunities you have to crash your car, so the company will offer you a good discount to keep your miles down.

Although you will not receive a big reduction on your premium, you can save a little money by adding an older driver to your policy. Typically, with an older driver, such as a parent, on a policy, the teen driver drives safer because there is someone making sure they do.

Teenagers have limited driving experience compared to other drivers so they are seen as more likely to get in an accident by car insurance companies. This is the reason that teenage car insurance is so expensive. This article should help you get cheap car insurance for teenage drivers.

The Reasons Why Performance Car Insurance is so Expensive

Car insurance quotes for performance cars are more expensive than standard car insurance quotes for a number of reasons. For example, they are much quicker than standards cars because they are built for speed. Their top speed can be as much as twice the top speed of an ordinary car. However, this means that there is a greater chance of getting into an accident. Speed can be responsible for accidents in any car but the top speed of performance cars enhances that possibility.

The speed of a performance car can not only lead to an accident but also to a criminal record, or a few points on your license at the very least! The police will soon be after you if you are exceeding the national speed limit, which is easy to do in a performance car. As such, performance car insurance will go up accordingly if you have points on your license for speeding.

In fact, an insurer has the right to refuse you insurance for a performance car if you have a criminal record that features a driving offence, or even just a license with endorsements.

Acceleration and top speed are taken into account in any performance insurance quote, but so is the expense if anything were to happen to the car itself, the financial burden of fixing it. Depending on how expensive the car parts are, it can cost a fortune to repair after an accident. This determines the insurance band that your car falls into and the level of your insurance quote as well.

That is not to say that you cannot work to reduce your premiums because you can. For example, if you limit the mileage or only take your car out on certain days of the week then your premiums will be much reduced. This is because you are not as likely to have an accident as someone that drives it every day!

You could also make your car more secure by putting it in a secure garage overnight and fitting a working alarm system if your performance car does not already have one. This can bring your car insurance quotes down significantly because performance cars are highly desirable and can be a target for thieves unless made secure.

Performance car insurance will undoubtedly be more pricey than regular car insurance, but going to specialists as well as the well known insurance providers could also save you money and make owning a performance car more affordable.

How to Lower Car Insurance Rates for Teenagers?

Almost all teens want to have their own cars. It maybe because of peer pressure or maybe they just wanted to enjoy adulthood by driving independently. Giving a car to a young driver is always a struggle – both for the parent and the teenager himself. While parents are worried about car safety and insurance premiums, young drivers are mostly concerned about how they fare with other kids their age who were already given a car by their parents. But at the end of it all, parents would have no choice but to give in to their teens as they reach the legal age. They would have to learn how to drive anyway. Purchasing the car may come later, as car insurance for teenagers can really be a big headache.

But once your teenager finally gets his hands on his driver’s license, the trip to the car dealer becomes imminent – unless of course you want him to borrow your car all the time. More than being concerned about the type of car you’ll give your son, you must be more interested on the car insurance coverage for teenagers. It could really go up the roof if you don’t know the techniques to make it low. With the guidance of a reliable car insurance agent, you will have more or less a good idea what kind of car will be perfect for your son.

Here are tips on how you can lower the car insurance for your young driver. Follow them and you’ll be ensured of the safety of your son or daughter.

1. Learn about deductibles.

This corresponds to the amount you are to remove from the total insurance claim. High deductible means lower premiums. Lower deductibles results in higher premiums.

2. Consider the car’s safety features.

When companies quote car insurance for teenagers, they always consider the features for safety of the car they’re driving. And so when buying a vehicle, get the one with airbags, automatic braking system, and pressure monitor. The more safety features the auto has, the lower the premiums will be.

3. Add your teenager to your own policy.

Some car insurance providers allows for a child rider to an existing policy. Check if this feature is supported by your own policy. This way, you’ll just add a minimal amount to your monthly premium and both you and your teenage driver will be covered.

Of course, safety comes first. Make sure that your teen is a responsible driver. Let him or her understand that driving is a serious task. By being a defensive driver and by following all the traffic laws enforced, it is easier to lower down the rates of car insurance for teenagers.

Car Insurance For Teenagers: Why Is It So Expensive?

As parents, you might be just as excited as your son or your daughter when buying their first car. And so you go to the car dealer, get the model you want for your son or daughter and prepare to sign a check for it. But when you learn about the car insurance premium you are to pay, you get shocked and ask, “Why is the car insurance for teenagers almost worth as much as the car itself?” Well, your son or daughter is 16 years old. That alone is a big factor to consider.

Your choice of a car for your teen driver determines part of the auto insurance premium you have to pay. You can buy him a brand new sedan, a sports car, or a run-down vehicle. It’s your choice. But the insurance costs would vary greatly with each vehicle.

Other than being a young, new driver, insurance companies can’t make an exact assessment as to how well your teenager drives. This forces them to bestow the highest possible premium they have on their charts. Everybody knows that drivers with no accident and traffic violation history enjoy low premiums. However, those who frequently visit car repair centers due to collisions have no choice but to pay for sky-rocketing costs every month.

Going back to the car you will give to your teenager, the insurance provider would check the car’s safety features first. Is the car totally safe to drive? Does it have features that can protect the driver and its passengers? Is the car easy to handle and isn’t too fast for a teen driver? Is the vehicle new and is not likely to be sent for repairs any time in the future? These are the things that determine the price of car insurance for teenagers. Now that you know them, you can do your best to get the premium lowered.

The driving knowledge and habits of your young driver is also a factor to consider. But again, since insurance providers don’t have enough data to support this fact yet, they would use your son or daughter’s report card to assess their attitude on the road. Studies show that teenagers who perform well in school tend to become a more responsible driver that those who are getting low grades. And so teens who have a general weighted average of B or higher in school is given lower premiums that those whose grades are lower.

These are just some reasons why car insurance for teenagers gets a little expensive. Parents concerned about premiums can now look for some work around in the assessment process of providers. But then again, parents should be more concerned of their teenager’s safety on the road rather than the amount they have to pay annually for the policy.

Should You Get Car Insurance For Teenagers?

If you are a parent of a teen, you must know how stubborn the younger generation can get when it comes to them having their own cars to drive to school. And if you don’t want to give him his own car just yet, he will begin borrowing yours until you’re fed up with it. This is actually understandable. Driving a car for a teen of the legal age is like having a ticket to be an adult. Young drivers think they’re free when they drive their own car and they love the feeling of being in control. If you decide to give your son or daughter a car, it is best that you also consider the price of car insurance for teenagers before making the move.

As far as the insurance of teenage drivers is concerned, you have at least two options. First, you can declare your son or daughter as a part-time driver of your car, making them a rider of your own policy. Or you can simply give them a car insurance policy that is entirely his own. Between these two options, the latter is the better one – especially if you intend to give your son a car for himself.

This is because your teenager will be the car’s principal driver after all. That means he needs full coverage rather than a getting a small portion of your policy. A full coverage gives him adequate protection from all the uncertainties that the road may bring. And as parent, you’ll be glad to know that his own car insurance policy frees you of minor car repair problems.

The problems that your son or daughter will encounter on the road will be the same as the ones you may face. This only goes to show that he needs as much protection as you do. In fact, they may even need more because they’re a new, inexperienced driver next to you.

However, parents should remember that car insurance for teenagers doesn’t guarantee their safety. What these policies can provide is peace of mind. It takes care of all the car repairs needed and even the rehabilitation of injuries, should the unfortunate happen. Of course, it all depends upon the coverage that you get for your teenager.

In certain states, driving without insurance is illegal. Your role as a parent includes teaching your teenager to obey all the existing traffic laws enforce within the state. Defensive driving should be drilled into your teenager’s head for safety reasons.

Car insurance for teen drivers isn’t cheap. It could even cost double that your own premiums. This is all because a teenager is new on the road and doesn’t have much experience when it comes to driving unlike anybody older. Just give it a year or two. Once the insurance provider had proven that your teenager is a responsible and safe driver, his premium would go down naturally.

Problems in Getting Car Insurance for a UK Non Resident

There are many car insurance companies that will refuse to work with non UK residents who need car insurance. Non residents can get around this matter if you are also taking your car from wherever you live to the UK. A UK non resident will be able to travel with their car and keep their car insurance from America, France, or another country that you are originating from.

Other car insurance companies will continue to cover your car as long as you are driving it, no matter what country you are in, but you will want to check with your individual insurance company to see if you need to change you current plan or do anything else in order to stay covered in another country.

Most companies within the UK will not give a non UK resident the ability to get car insurance during their stay, whether it be for a few weeks, months, or even years. In order for a person to get car insurance, as UK non residents will either have to rent a car the whole time that they are in the country, or go without their own car.

Another way to be able to get car insurance coverage in the UK is to get an international driver’s license. Remember that many countries around the world will not recognize an American driver’s license, but an international one is easy to secure and will let you drive in a number of different countries.

And even though you have an international driver’s license, you still may have difficulty getting car insurance. If you are looking to buy a car in the UK, you will need insurance when you buy it. But if you are bringing a car in from another country, you may not have to change your current coverage.

If you do find car insurance, UK non resident fees will probably be much higher than those who have already been driving for a number years within the UK. This goes for people who have a license from a different country, students who have not been driven very long, and other international drivers. The UK road laws are strict about those who have not driven for very long in the UK mainly because most countries in Europe drive on the opposite side of the road, and insurance companies do not want to have to deal with claims due to negligence of this situation.