The Many Ways to Keep a Car Insurance Premium Down
Many considerations go into the cost of car insurance, in terms of the premium calculation. Although many things are, in a sense, beyond our control, certain choices can help to reduce an insurance premium. This article will consider many of the factors involved in insurance loads and discounts.
If you are looking for insurance for your car, or will be soon, then one sure insurance is a company that can help you to achieve the best price.
Choice of Vehicle
This is very much down to our choice. Principally, the larger the engine, the sportier the car, and the more valuable are vulnerable to theft. So, therefore, the greater the theft risk of the car, the more insurance premium we will pay. This makes it important to know about vehicle insurance groups and to be aware of the one that our car is going to fall into, preferably before we purchase it.
Our insurance company, if we ask them before buying it, can inform us of where our car is positioned, in terms of insurance grouping. If it is our dream car or budget is no object, then it may not matter, but, on the other hand, it could make a significant difference to our household budget, that is otherwise controlled.
A certain portion of a claim will be payable by an insured person, where the accident is their fault, and this is a way of controlling an insurance premium. If you opt to accept a higher excess in the event of a claim, then you can have a cheaper premium. Insurers will apply these excesses themselves, so that they can offer lower premiums to policyholders.
Young drivers will attract higher excesses, and this is seen as good because, otherwise, insurance premiums would have to be even higher because of the risk they represent. This risk is based on how many accidents are being caused by this age group.
Voluntary excesses can be accepted by drivers to keep insurance costs down.
No Claims Bonus
Another way to keep your insurance premium to a minimum is to drive carefully, to have fewer claims or to protect your no claims bonus. The latter can be cost-effective and possible in exchange for paying a relatively small additional premium per year for the privilege.
Introductory discounts are given to those starting a policy off and who are yet to build up any no claims bonus. Then, policyholders will generally notice the percentage of discount increase from 30% to 65% off, as years of claim-free motoring are hopefully built up. This makes a significant difference to the premium.
Alarm Systems and Cameras
Many insurance companies will offer discounts for having an approved alarm system fitted to your car. It is worth checking, before having one fitted, that you are choosing an alarm type that will make a difference to your insurance premium, as well as prevent theft. An insurance company-approved alarm will be the best kind for preventing thefts, anyway, which is what we want.
Cameras fitted to observe and provide evidence of accidents will not only help you keep your no claims bonus, when it was not your fault, but also reduce insurance premiums through discounts in many cases. It is a record of an accident and so invaluable to an insurance company. Also, it is considered that those with them fitted will drive more safely because they know that the quality and safety of their driving are being observed too. Insurance companies know this.
It is then financially useful to be aware that there are significant ways to reduce an insurance premium when car insurance can prove so expensive otherwise. It is a major cost to consider when running a car, or perhaps a second vehicle. The vehicle that you choose will form the basis of how much you pay for motor insurance, whether it be a car or another mode of transport. Excesses, when voluntary, give us control in keeping our premiums down. Then security systems, such as alarms and cameras, will be looked upon as a good thing by insurance companies and so reflect on the premiums that they can quote.