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Car Insurance Cost Cutting Advice |
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Drivers who partake in the daily motorway
commute and those who simply chug to the supermarket once a
week; we’re all united in the expensive necessity of
insuring our vehicles. But there are measures that can be
taken to reduce the cost of
car insurance. Consider the following cost saving
strategies… |
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When purchasing a car: |
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Look into the tax and insurance
categories of the cars you are test driving. The cost of
insuring and taxing the car on an annual basis should inform
your choice of car.
Cars are categorised into insurance
groups by the Association of British Insurers. Insurance
groups are based on the engine size, availability and cost
of the car. So cars that are readily available, small in
engine stature and relatively cheap to replace in the event
of a write-off are the cheapest to insure, examples include
the Toyota Yaris, Vauxhall Corsa, Renault Clio and Ford
Fiesta (insurance groups one to three). Conversely,
expensive models and rarer vehicles as well as cars with
larger engines with greater acceleration speed will fall
into the higher insurance categories, resulting in heftier
premiums.
Similarly, vehicles are grouped into tax
categories. Cars with smaller engines, more environmentally
friendly fuel sources and lower emissions are those favoured
by the tax groupings. To this end, eco branded cars such as
the Toyota IQ will be free to tax and so called 4x4 gas
guzzlers will be more expensive. |
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When purchasing car insurance: |
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Shop around for your policy
Recent research shows that 13.6% of drivers have never
switched their car insurer. However, simply renewing an
existing policy is not the way to save money. Instead,
drivers should compare insurance policies across the market
to get the most competitive policy. Price comparison sites
are an easy way to view and compare offerings across the car
insurance market. And it’s easy to switch, with no claims
bonuses transferring across insurers too. |
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Level of coverage required
Consider the policy you purchase. There are three types of
policy: Third party, Third party fire and theft and
Comprehensive. It is often assumed that Comprehensive
insurance will be more expensive than the lesser coverage
options. However, this is myth. In a recent comparison,
Comprehensive cover was quoted as £478.14* whereas Third
party insurance was quoted to cost £683.92*. |
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Calculate your mileage carefully
It’s worth taking the time to predict the likely annual
mileage, perhaps basing the estimation on the previous
year’s total. Those who travel fewer miles may well receive
cheaper premiums than those who intend to drive greater
distances. For example, in a recent quote comparison, an
estimated mileage of 23,000 could cost £478.14*. In
contrast, a 50,000 mile annual mileage could come in at
£608.70* in insurance. |
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Payment options
Spreading out the cost of a hefty insurance premium can be
an appealing proposition. However, this convenience comes at
a cost. In a recent comparison, the same premium could cost
£592.80* when spread out across a series of 10 monthly
payments or £478.14* in a one-off payment. |
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Small claims
Avoiding small claims is advisable when considering the
prospect of future premiums. Any claim will affect no claims
bonuses unless they have been protected (an additional
extra) so it is advisable to avoid claims that are little
more than the excess contribution required. |
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Modifications
Modifications and customisations are not just for
enthusiasts; when purchasing a pre-owned car, it isn’t
always obvious that modifications have been made. But it is
important to familiarise yourself with any non-standard
parts as these may impact on your insurance premiums. For
example, in a recent comparison, the additions of alloy
wheels and a rear valance were quoted to cost £568.71*,
compared to the standard model which would cost £478.14*.
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Excess
Increasing the voluntary excess (excess contributed in
addition to the compulsory contribution to a claim) can help
cut the cost of the insurance premium. In a recent
comparison, increasing the voluntary excess from £250 to
£500 could save £11.11*... look after the pennies!
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*
Prices provided by
Gocompare.com, correct on 01.03.2011. Prices based on a
46 year old male driving a 2010 Ford Focus Style, 1.6
engine, having held a full licence for 12 years with 7 years
no claims bonus. |
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