Insurance companies compete with each other for business, so don't settle for the
first quote you get. It takes a little work to get the cheapest quote, so here are
some pointers:
Do your research.
The internet is a huge help for this.
Get quotes from several companies, use the insurance search engines such as confused.com and comparethemeerkat, ahem, sorry, comparethemarket.com (simples). If you have friends
of similar age, record and driving experience, ask them who they use.
Consider restricting the level of cover.
For example, limit
the number of people who can drive the vehicle to yourself and, say, your partner.
That said, if you limit the car to yourself, bear in mind that in an emergency no-one
will be able to drive the car on your behalf. If you are an inexperienced driver,
sometimes adding an experienced driver with a clean driving record to your policy
can help reduce your premium.
Maximise your no-claims bonus.
Your 'no claims bonus' is the amount your premium
is reduced each year you go without making a claim. These reductions can be quite
substantial, starting at about 30% after the first year and rising to as much as
60%-65% over the following years. Try not to claim on your insurance for light damage
which will not cost a great deal to repair as doing so will reduce or eliminate
your no claims bonus. Some policies offer no claims protection, meaning your no-claims
bonus will be protected in the event you have to make a claim - ask about this.
Consider paying the first part of any claim.
This is called an 'excess'. The higher
your excess, the lower your premium will be. This is because, in the event of minor
damage, you are less likely to make a claim of significance - if any. Say you have
an excess of £200 and the cost of repair is £400, the insurance company will pay
out £200. When you take into account the loss of any no claims bonus you have accumulated
when the next premium becomes due, you may be better off paying the full £400 yourself.
This reduces the insurance company's risk and so the premium. But, of course, the
risk is higher for you!
Pass Plus.
Young drivers can sometimes obtain premium reductions by taking the "Pass Plus"
course. Naturally, any premium reductions will need to be offset against the cost
of taking the course. You will need to provide a Pass Plus certificate to obtain
the premium reduction.
Specialist Insurers.
If you drive a classic car, if your car is modified, if it's a kit car or if your
car is in any way out of the ordinary, go to a specialist insurer or broker.
If you don't use the car very often, investigate limited mileage policies or 'pay
as you drive' policies.
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