Whether you’ve just passed your test or you’re a parent looking to insure your child’s first car, insurance is one of the biggest expenses you will face. There are a few key points all young drivers and parents should follow in order to make your insurance is as cheap as possible.
- Your car – Make sure your car is relatively cheap, obviously insuring that dream GTi is going to be more expensive than your mum’s Micra. Cars are separated into 50 different pricing categories; cars with similar power and performance, cost of repair and security are all put together. So as a new driver you are looking for car that has low power, is cheap to repair and very secure. Some examples of ideal cars are Peugeot 107, Toyota Aygo, Citroen C1 or C2, Fiat 500 or Punto, Seat Ibiza, Ford ka or fiesta, Renault Clio, Vauxhall Corsa, Nissan Micra or Pixo and the Chevrolet Spark.
- Compare lots of sites and companies – If you’re on this site then you’re already used to using the internet. There are hundreds of companies online that will give insurance quotes within minutes. The more sites that you visit the more chances you have of finding a cheap insurance.
- Add your mum! – Insurance companies often give discounts when a female driver with experience and no history of claims is added to a policy. Add your mum to your quote and see if it affects the premium. Avoid using your mum as the main driver though as insurance companies will void a policy if they suspect that the main driver wasn’t actually the policy holder. Companies such as Direct Line will offer a no claims discount to everyone named on a policy.
- Don’t modify your car – As tempting as those new shiny alloys in Halfords maybe they will increase the price of insurance premium. Any modifications made to your car should be disclosed to your insurance company. This includes alloys, window tinting, stereos and engine modifications. Failure to do this might result in insurance company refusing to pay out on a claim and, following this, possible prosecution for driving without insurance.
- Mileage – If you’re only going to cover limited miles then some insurance companies will give you a discount based on this
- Type of cover – There are three basic types of car insurance, third party, third party fire and theft and fully comprehensive. They each offer varying types of cover, with third party insurance only other people’s cars are covered (if you have a crash and your deemed liable you won’t get any money for your car). Third party fire and theft is the same with added fire and theft cover but still no accident cover. Fully comprehensive means everything is covered: you, your car and anyone else involved in the accident. Think what cover you need. If your car is only worth £600, do you really need fully comprehensive cover, will you be getting value for money?
- Do u need the extras – When you get the quote for your insurance make sure that you need all the extras added to the policy. Most companies will add things like courtesy cars, legal cover and expenses. Removing these extras may result in a reduced premium.
- Don’t over value your car – If you over value your car you will increase your insurance premium but your insurance company will only pay market value for your car if you make a claim.
- Buy online – If you buy your insurance online, you will normally receive a discount as the insurance company will have reduced admin expenses so always , you will avoid finance charges and therefore pay less over the year.
- Get secure – Fitting your car with a Thatcham approved alarm and immobilizer can reduce your insurance premium. If your car is particularly expensive then you might consider fitting a tracking device to further reduce your premium.
- Park it safe – If you’ve got a driveway or, even better, a garage then make sure your insurance company knows that this is where your car will be parked as it will be considered more secure and therefore reduce your premium.
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