Rates for car insurance are determined using a range of factors. For many of us, car insurance can be a big expense.
The price you pay depends on circumstances of your own, such as your driving experience and where you live. We have learned a few things over the years about cutting car insurance rates, and we are here to share these tips with you. If you are a new driver, because of age and inexperience, costs tend to be higher again. PolicyStreet has some handy tips to save on their insurance for young drivers.
The cost of car insurance.
The cost of car insurance depends on a number of factors, such as the car you are driving, the security of your car, who owns or drives your car, where you use your car, where you stay, and the type of cover you choose. Next, the price, model and size of your car all make a difference to the cost of your insurance. The general rule is the smaller the car, the lower the rate. If you have not yet bought a car, review quotes for the cars that you are considering. Another thing you must consider is the car an import? This is because privately imported cars can be more expensive to insure, as the car’s components can often be more difficult to find and thus more expensive.
Place a security device
A vehicle fitted with a safety device such as an alarm, immobilizer or tracker ensures that it is less likely to be broken into or stolen. In fact, it is more likely that insurance companies will offer you a good quote for car insurance. Besides that, many newer cars come standard equipped with an alarm and immobilizer, but you may want to consider adding additional security tools like a tracker. Another factor that must take into consideration is that, who owns the car and drives it? If the owner of a vehicle is not the same person as the registered keeper, prices can be lower when looking for car insurance. If you are driving a company car for example, or buying the car but your children are driving it. This is especially important when looking for rates as most deals allow the owner and registered guardian to be the same person or partners.
How do you use your car?
It is important to say how you use your car to your insurer. The insurer may not pay out if you give the wrong use. For example, when you say you are using your car to travel but you are having an accident on the way to a business meeting. When you need your car for a small fee, most insurance companies will require you to add ‘business use.’ Besides that, insurers rate the use of cars in one of four categories:
1. Social, domestic and pleasure
3. Business use
4. Commercial travelling
The type of cover that you pick
It is vital that you buy the right type of cover for your needs, because if you need to make a claim, the insurance provider may not pay out. Instinctively, most drivers in search of cheaper car insurance opt for third party, fire and theft. Nevertheless, with many higher risk drivers searching for cheaper insurance, they are driving up the average cost of these policies. Don’t just conclude that a third party policy is going to be cheaper, while make sure you always review the full cover to see the price difference. Furthermore, It’s worth keeping your driving license clean to help lower the cost of your car insurance. And the price of your cover is likely to increase by having points on your license.
Consider whether you need additional services such as paying legal expenses, covering windscreen or using a courtesy car. You can soon add up these extras and increase how much you end up paying for your policy. When you feel like you really need the extras, make sure you get the best deal without losing your cover rate which is still worth shopping around.