If only we could drive without insurance! Wouldn’t that be a perfect place to live? Well, not really as you’d have to pay for everything yourself. Insurance can be useful when it’s needed; however most of us go many years before ever needing to claim on our insurance. It’s a necessary evil and one that shifts around. The price you pay differs depending on a variety of different factors. Below I will go through the main things that impact your premiums.
I will list the main factors; however there are more so you might wish to speak with your insurance company. With the below, hopefully they will provide you some ideas on how to reduce your own premiums.
As every first time driver knows, the younger you are the more you pay – and it’s a lot more. The average is a little over £2,000 a year. That is eye watering. The older you get it slowly decreases until you get to about 25 at which point it starts to level out. This is a fact of driving life and it’s something you’re going to have to get to grips with: you will be paying more for insurance than your first car. There are things you can do to lessen it, for example, a multi-car policy, or put on a parent with a clean driving record to reduce the premium.
The type of car you have is a massive factor on insurance. A 1.2 litre Renault Clio is going to be a lot cheaper to insure than the latest Ferrari. This is mainly down to the fact that the Clio is easier to drive/control and can’t go so fast which means that you’re a lot less likely to crash or need to claim on insurance.
This is two-fold. Firstly it means the location of you in the country. Those who insure their cars in the country side will have a lot less to pay than someone in the city. There are more cars in the city, which equates to more accidents. Plus, in the city, with its concentration of people, usually means there are more criminals who are likely to steal or damage your car.
Check here for the prices depending on postcode.
Secondly, if you park in a garage or your driveway, you’re much less likely to get dinked or crashed into and so this also means you pay less.
This just makes sense. If you have added security measures to your vehicle, for example, a steering lock, a radio you can detach and hide, and a good, loud alarm you will pay less as it is harder for criminals to break into your car and cause damage that would need insurance companies to pay out for. If something does get broken or stolen with your car, before running off to the insurance company, look around for second hand car parts by checking Gumtree or some other e-commerce site.
When it comes to insurance, you need to look around to find the best deal as all companies offer different prices. Make sure you end up with the cheapest and best cover possible, whilst bearing in mind the effect of what you’ve read here on your premiums.