Handy tips on ways to lower car insurance premiums
3rd Feb 10, 9:06am
By John Grant Has your premium kept increasing and you're looking for ways to pay less for your insurance? If that's the case then here are some ideas and ways that will almost certainly pay less. 1. Firstly it's good to know that what you are starting with is correct. So check that no mistakes have been made with the current insurance account. Mistakes do happen and can arise for many reasons. Insurance premium calculations are rather complex calculations and they are sometimes wrong. Common causes for errors are:
- Incorrect NCB (No Claims Bonus) discount. (The maximum NCB is normally around 65%). Check to see this has been correctly applied.
- Under age drivers - Are you paying a higher levy due to a surcharge that has been applied for under 25 (or higher for Under 21) or inexperienced (usually licensed less than 2 years) drivers? Children move on and if they are not going to drive the car then take them off, you can always add them back in if the circumstances change.
- Who is the main driver? Premiums can vary if the main driver is a female. So it pays to check on what the insurance company currently has on their records. It may be worth changing the primary driver if there is equal use between the main drivers.
- Your age - If you have passed through the milestone of fifty your insurer may have a discount. If your date of birth has not been correctly recorded then you may be missing out on a discount.
- Car is over insured. Particularly on Market Value policies. Many companies will not look as closely at market value policies as they do on Agreed Value. A cynic would suggest that it's in the insurance companies interest to keep the vehicle sum insured as high as possible as they collect a higher premium. They are always happy to adjust to a reasonable level. It can make quite a difference to the price.
- Have they allowed for a discount for having multiple policies. Sometimes this is missed if the house is insured under an alternate name, such as a family trust or a company.
- Review the optional covers and delete any that are not required. These could be for things like, NCB protection, glass cover, breakdown service etc.