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Reducing Your Premium

We all know that the price of your insurance premium is determined by different factors of our person. Whereas you can not have much control of circumstances such as your age, sex, profession or driving record, the things that car insurance companies chiefly base their premiums on, there are plenty of other factors that come into play in when they come to determining your final premium. There is a reason that insurance companies ask so many questions, and it helps to know the best way to answer these questions before you sit down at your computer to search for car insurance quotes.

Mature motorists

Statistics are very significant to car insurance companies because they allow them to gauge comparative risks. If you are over 50 an important statistic in your favour is that your age group is far less likely to make a claim than the younger less experienced driver groups. In spite of this, if your insurer also insures those who present a larger risk, you are effectively subsidising their claims and helping to keep their premiums low. Some insurers have realised that if they offer car insurance policies only to the more experienced motorist, they will be able to offer lower premiums. Regardless, age is a very important factor when it comes to car insurance premiums, something older car drivers can take advantage of in spite of who they choose to insure with.

Specialist car clubs

If you are passionate about your car and want to share your enthusiasm with folk of a similar kin, joining a specialist car club is a rather good idea. An added benefit is the fact that many car clubs offer privileged rates with insurance companies. Even if they don't, mentioning that you are a member of an owners club can sometimes get you a discount on your car insurance premium.

Location

The digits of your postcode in determining your final insurance premium are of vital importance. Insurance companies maintain a database of claims histories from each and every postcode in the UK, and use this when assessing risk. So if your postcode has a poor claims history, you are going to pay more for insurance. As a general rule, more urban areas are a greater risk than rural ones.

Excess

In the ill-fated event of an accident, or other claim, most insurance companies will expect you to pay a specific amount with respect to the overall cost. This is your car insurance excess. The amount of excess that you can expect to pay varies from insurer to insurer, and many insist on higher excess for younger or less experienced drivers.
Some insurers also give you the option of higher voluntary excess. If you opt for this, you can achieve considerable savings on your car insurance premiums.

Security measures

Supplementary security features are a great way to lower your car insurance premiums and they needn't be expensive or complicated. For example, most insurance companies offer lower premiums for customers who house the car in their garage overnight. Other devices that may save you money include car alarms and immobilisers. Don't forget to mention these features when you are shopping online for car insurance as these devices may entitle you to a discount. If your car isn't fitted with additional security, you can have an alarm and/or immobiliser fitted for a few hundred pounds. However, it is important to remember that these devices will need to be fitted professionally. Your insurance company will expect to receive a certificate from the person who installed your alarm to prove that you are entitled to receive a discounted premium.

No claims discount

If you don't make a claim on your car insurance you will be rewarded with a fall in your car insurance premiums. This is known as your no-claims bonus. The effects of the bonus are collective, with increased discounts for each year that passes in which you don't make a claim. There is usually a cut off point after five years. However, if you do need to make a claim, you lose your bonus, and your premiums are guaranteed to rise. This is worth bearing in mind if you were planning on claiming for something relatively minor. Many insurers now offer 'protected-no-claims', to policyholders with four years or more no claims. For the payment of a small additional premium, your bonus is protected, and you are allowed to make one or two claims without losing your total no-claims.