Cheap Motor and Car Insurance
Motor insurance policies
can vary wildly in price as it is dependant on many factors. Where the
car is kept, the driver(s) occupation, the age of the driver(s), the annual
expected mileage, the occupation of the driver and of course the type
of car. All things being equal, a 50 year old married man who drives 5000
miles per year and stores his family saloon in a garage overnight will
pay a much lower premium than a 19 year old man who drives a "hot
hatch" and parks it on the public road.
Are there any other types? I've heard about classic car insurance for instance.
As well as standard
Comprehensive and Third Party insurance there are other, more specialised
policies that may be available.
I have exactly the same car as my neighbour, but my policy costs 50% more. Why?
Many factors affect
the cost of an insurance policy. You may have exactly the same car as
your neighbour, but that doesn't necessarily mean your policy will cost
How can I get cheap car insurance?
There are various things that you can do to reduce your insurance premium. You can elect to increase your voluntary excess. Most motor insurance premiums have a compulsary excess, but if you agree to a voluntary excess as well it usually reduces your premium. If you only travel 5,000 miles per year, tell your insurance company. Informing the insurer that you travel limited miles within a year usually makes your motor insurance premium cheaper. Don't include your 19 year old brother who has just passed his test. It might seem like the brotherly thing to do, but having a young, inexperienced driver on your insurance is a sure way to increase the cost. Garage your car overnight. A car locked away in a garage overnight is less likely to be stolen or damaged. This should knock a few pounds off your premium.
But above all, be a safe driver. A full "no claims" discount can knock well over 50% off your premium.
What is a "no claims" discount?
As a reward for not making any claims against your motor insurance, insurance companies will give you a "no claims" discount. For example, if you have not made an insurance claim for 12 months, your insurance premium may be reduced by 15%. The percentage discount will continue to rise the longer you go without a claim up to a certain limit (usually 5 years). You will then have what is known as a maximum no claims discount.
If you do make a claim
once you have built up a "no claims" discount, your discount
will usually be reduced (unless you have a protected no claims discount).
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