Four Ways to Save on Your Car Insurance

October 1, 2007 By

As we all know, it pays to shop around for cheaper car insurance. What is not always clear is why companies give you different quotes for insuring the same vehicle. Primarily, insurance quotes are based on risk, and various companies put differing emphasis on which factors present the most risk. However, there are a number of quite generic methods out there that will almost certainly help get your quote down across the board of insurers. Take a read of this article for four easy methods of how to do this:

Buy a Lower Group Car - One of the important factors that insurance companies take into account is of course your vehicle. There are thousands of different cars on the road so companies divide them up into groups. Most companies will adopt the ABI (Association of British Insurers) group rating. This splits up vehicles into 20 different groups. Generally speaking the higher the group rating for your vehicle, the higher your premium will be. Some companies may also combine your driving experience with the vehicle group to get a better idea of how high the risk is. This is one of the reasons why young drivers should consider buying a lower group car if they want to lower their insurance cost.

Consider Third Party Cover Only - A Third Party Only insurance policy is the minimum amount of cover legally required - it is also the cheapest. Generally speaking you should consider opting for this type of policy if your vehicle is of low value. In the unfortunate event of having an accident, any damage to a third party vehicle will be covered but any damage to your vehicle is not. However, if your vehicle is of little value then you may not be too concerned. It may not be worth paying extra for a Fully Comprehensive policy in these circumstances.

Maintain a Good Credit Rating -More and more insurance companies are adopting credit scoring techniques as part of the overall calculation of your car insurance premium. By keeping a good credit history you may avoid any additional premium that companies add to your price for having a bad credit score.

Buy on the Web - Many insurance providers now offer some exclusive discounts for buying car insurance online, such as CIS. The theory is that by purchasing your insurance over the web, you are saving the company money by not requiring telesales agent time and incurring free-phone costs. This saving is passed on to you in the form of a discount for buying online. If you have got prices by telephone then check your quote again on their website, you may be surprised at how much cheaper it is.

Of course, you should take a look at price comparison websites such as Moneysupermarket to compare some of the best prices. However, not all insurers are included on these sites, so you should still do some further research. Take a look at Co-operative Insurance for a quick and easy car insurance quote. You may also want to try ASDA Finance for car insurance quotes from a panel of suppliers.

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