Tips to Reduce your Car Insurance Premium

By Michael Saunders
Published on 29 Nov 2007
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Car Insurance Guide

We share the secret to reducing your car insurance.

The cost of motor insurance can be attributed to five main factors:

  • Driver (age, driving experience, points on license etc.)
  • Car (what is the insurance group of the car)
  • Location (post code, is the car parked in a garage etc.)
  • Usage (private or business use)
  • The Insurance Company (what is the insurer's specialist area?)

Moving house in order to lower your premium is perhaps a little drastic. However, there are steps you may be able to take that can reduce your premium:

  • Voluntary Excess - agree to increase the excess you would pay in the event of a claim being made.
  • Security - have a Thatcham approved immobiliser and alarm installed.
  • Limit Mileage - agree to limit the number of miles you will drive
  • Shop Around - discussed in more detail below

Premiums can vary considerably from one insurer to the next. The answer is to shop around as there is no charge for obtaining a quote. This is where an insurance broker can help.

Insurance brokers obtain quotes from a number of insurers on your behalf in order to find you the best deal. Some brokers are able to compare hundreds of policies in a matter of seconds. However, insurance brokers are unable to get you a quote from the 'direct insurers', such as Direct Line, who are able to offer some very competitive prices. We recommend getting quotes from 'direct insurers' as well as from brokers.

You will also find that some insurers offer a further discount when you purchase their motor insurance online rather than by phone.

Compare car insurance via money.co.uk

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