Car insurance policy prices are determined by a range of factors, including the driver, the vehicle, the phases of the moon, maybe. It can be really tricky to keep track of just what is affecting your car insurance premiums, but knowing your way around these factors can help you save big time.
The cost of your car insurance policy is based on the average cost of covering actual losses, spread out over your particular 'rating group' as a whole. Of course, you may never have an accident or have your car stolen, and therefore will never need to be compensated. But others in your category may not be so lucky.
Car insurance prices are determined by:
Yes, you want a cheaper premium, but it's important not to sacrifice your security in the rush for low cost car insurance.
Here are ways to cut the cost of your insurance premium, without sacrificing the quality of your cover.
This is your ticket to cheaper car insurance: just one year of accident-free driving will knock about 20% off your premium, and each year after that is worth about 10% more, to a total of 60% at the top 'Rating 1' no claim bonus. Before making an auto insurance claim, consider whether the payout is worth more than the potential loss of your NCB.
Everybody loves a multi-policy discount, especially insurers. You could save 10% or more across all your policies by using the same insurance company for multiple products including:
The higher the excess you're prepared to pay, the lower the premium. If you're not worried about the cost of minor repairs, higher excess is a great route to cheap car insurance. Just remember, a high excess means a lower upfront premium - but you'll be paying more of the cost of repairs if you ever do have an accident.
Unless your car is shared by the whole town, restricting the number of drivers who use your vehicle is an easy way to save on your policy. Fewer drivers is better, and older drivers (particularly over 25 years) makes for significant savings.
Some policies will still cover car accidents caused by non-nominated drivers, but levy a higher excess in these cases.
The more you have, the smaller your premium. Immobilisers and car alarms contribute, and a car tracking device is ideal if you're at the luxury end of the caryard.
Also, whenever possible, park your car in a secure garage, instead of out on the street.
If you write off the car, your insurer will either pay the current market value of your vehicle or a preset 'agreed' value. The latter might allow you to buy a new model but it will also increase your premium.
Young drivers in particular can have their premiums (and excess) reduced by completing a defensive driving course. (Lesson 1: the best defence is not a good offence.)
If your car payments or lease are arranged through your job, employer or own business, you can include car insurance in the package to pay it off pre-tax.