Money Spinning Insurance

If you want to save your hard earnt cash, it pays to shop around, and this rule applies more so than most things with car insurance but if you're looking for car insurance quotes, be prepared to go through the same information over and over again, we recommend doing this online as more often than not you save around 10% than the quotes you would receive on the phone, this is simply because of saved money on staffing as by submitting your details online yourself you have saved on the wages of the insurance clerk at the other end of the line.

It is also important to know the criteria for underwriting varies vastly among car insurance providers and although one company may give you a car insurance quote at one price from the details issued, another could use a slightly different set of details to give a different rate altogether.

Filling in exactly the same details and interpreting the wording can be tiresome and even small variations in the details can make a big difference to the resulting quote. This makes it even more tricky when making comparisons.

It is worth researching car insurance quotes on the internet through a site such as The Post Office who are a broker of several insurance companies, you simply fill in one form and they find the best quote from their database of providers, the disadvantages of going through a broker though are that many of them only have a certain amount of insurers on their database so whilst it's a good place to start to get an idea on price it's not the be all and end all.

If you are a young driver or drive a sports car, insurance prices can vary widely.

But while most of us accept that young driver car insurance costs more, many of us aren't so sure why young people pay more (or less) when they move from one part of the country to another.

An example being... Someone going to a university in a big city will pay far more as a student for car insurance than a young driver would for car insurance in a rural area.

Another mystery is why some companies will drive up your premium if you get points for speeding while others won't.

The reason for this is that technology has revolutionised insurance by allowing insurance brokers to offer a far wider choice of products to suit different markets.

Until recently, most insurers employed an underwriter to set their rates. These were people with huge experience in the insurance industry. They decided who was a good risk and who was not.

For example, underwriters decided that people living in London had to contend with larger volumes of traffic so the likelihood of an accident was much greater. That is why car insurance still tends to be higher for Londoners.

But there were also myths that were widely accepted as fact and used as pricing criteria. For example, journalists were perceived to do a lot of drinking at lunchtime and were viewed as a higher risk than office workers. Similarly it was commonly held that as people turn 25, they magically become more competent drivers.

These days, underwriters have access to a host of statistics which they use to build profiles of all the claims their companies deal with. This gives them more flexibility to tweak prices so companies can appeal to certain individuals, such as a young driver.

Car insurance firms also look at the length of time drivers have held their licence, what area of the country they live in, the size of the car's engine, any No Claims Bonus (NCB) and any claims history when they decide on a price.

But not all insurance companies cater to every group. Most have portfolios of risks they prefer to cover so they may lower their prices to attract a certain type of customer. Some cater only to standard risks, which includes people who are statistically less likely to make a claim, others prefer offering policies to higher-risk groups, such as offering sport car insurance or classic car insurance, for example.

If you are not lucky enough to be classed as a 'standard risk', for example, if you are a student, car insurance prices can vary widely, from a slightly higher premium to a ridiculously high surcharge.

Your car's value, type and engine size all make a difference to your premium. Generally, the smaller the car, the lower the cost and therefore the lower the premium. In short, a smaller car means cheaper car insurance quotes.

1. Choose a car you can afford to run - the higher the insurance group, the higher the premium.
2. Make sure the car is fitted with up to date security systems.
3. Be clear on who owns and drives your vehicle.
4. Tell your insurer how you use your car.
5. Get the type of cover and the mileage correct when filling in your details.
6. Keep the car in a garage or on a driveway.
7. The higher the voluntary excess, the lower the premium is likely to be.

8. If you are desperate to drive the premium down further don't buy the optional legal expenses cover which usually adds between £15 - £20 to your premium.

Cars that have been imported privately attract higher premiums as parts can often be harder to find and are therefore more expensive. If you do buy an imported car, you stand more chance of getting cheap car insurance if it is a UK-specification model.

Enhanced security on a car such as an alarm, an immobiliser or a tracker means it is less likely to be stolen or broken into - this means UK insurance companies are more likely to offer you a cheaper car insurance quote.

Alarms, immobilisers and trackers can all help you to get cheap car insurance cover:

* Alarms
Fitting a car alarm is a good way to qualify for a cheap car insurance premium. Car alarms are a good criminal deterrent to protect your car and valuables like your stereo. Once activated, the alarm will sound if the car is jolted heavily, if the doors are opened or the windows are smashed. The latest alarms also come with a pager to alert you if they are activated.
* Immobilisers
An immobiliser is an electronic device which prevents a car from being started until it has been deactivated. Although this won't stop a car from being broken into, it may stop it from being stolen.
* Trackers
If your car is stolen, it has a better chance of being recovered if you have fitted a tracker device. Trackers are a great way to get cheap car insurance. If your car is in the UK, the police can recover it by following the tracker signal back to its source.

How to tell what sort of alarm, immobiliser or tracker system is fitted to your car

Most newer cars (those built after 1997) are fitted with an alarm and immobiliser as standard. Manufacturers will have given this information to insurers to help them provide accurate car insurance quotes.

If your car is older, you will need to find out the make and model of your alarm in order to get a quote. You should have the details with the car's paperwork. Trackers are mostly fitted by owners as an extra and don't often come as standard.

When shopping for cheap car insurance, quotes can be higher if the owner of a vehicle is not the same person as the registered keeper. For example, if you drive a company car or if you own the car but your children drive it. This is particularly important when looking for a quote online as most internet quotations require the owner and registered keeper to be the same person (or partners).

It is important to tell your insurer how you use your car. If you give the wrong use, for example, say you only use you car for commuting and then have an accident while on the way to a business meeting, the insurer will not pay out. Car insurance firms will let you add business use when you need it for a small fee.

When compiling cheap car insurance quotes, brokers rate your car under one of four categories of use. Cars which only have social, domestic or pleasure-related uses tend to qualify for cheap car insurance as the more the car is used, the higher the premium will be.

This covers drivers for normal day-to-day driving, such as a visit to family, friends or to go shopping.

This covers a drive to and from the normal place of work and includes travelling and parking at a railway station.

This covers using your car in connection with your job, such as driving to different sites away from your place of work.

It is important you buy the right type of cover for your needs, otherwise the insurer might not pay out if you need to make a claim. The different types of cover include:

Third party insurance covers any claim by third parties but does not cover damage to your car. This is good budget car insurance but you will have to pay to repair your car yourself.

This covers accidental damage to the car in addition to fire and theft and any claim by third parties. It is more expensive than budget car insurance covering only third parties.

The excess is the first part of a claim that is paid by you. You can get your money back if the claim is deemed 'non-fault' by your insurer. By increasing the amount you will pay in voluntary excess, you can lower your premiums significantly.

Leaving your car parked in a driveway or garage is deemed to be safer than leaving it on the roadside and this can also help to lower your premiums.

What is No Claims Bonus/Discount?

No Claims Bonus (NCB) is crucial to reducing car insurance premiums. Its worth varies from company to company. A NCB of five years or more, for example, can entitle drivers to a 60%-75% discount on car insurance premiums. NCB is earned. Generally, for every year that a driver has insurance on a car without making a claim, they will earn another year's NCB to a maximum of 5 years. Some companies offer further discounts for 6-8 years of claims-free driving, but generally the maximum figure is 5 years.

So, is protection worth it?

In a nutshell, yes. Even if the premium goes up - because the person would now have a different claims history than they had at the start of the year - their NCB is still a very valuable asset, an important discount on the insurance premium. Some companies even offer guaranteed bonus - but you pay a price for that, and it is just another factor to consider when shopping around for car insurance this year. To understand this in more detail we need to look at how insurance premiums are calculated. Be warned though, it's complicated! How a NCB affects insurance premiums Most insurance companies have upwards of 25 questions that they ask drivers to complete when applying for insurance. These are used to calculate the premium. The answer to these questions - individually and/or in combination - determine the base premium for, say, comprehensive insurance. So, how does this actually work? People assume that a 5 years NCB is worth a 60% discount, and that the 60% is applied to the price that the insurance company calculates based on the information that has been provided. Wrong! With nearly all companies the 60% discount is applied during the calculation, and not at the end. Depending on the company and the way they underwrite, the point at which the 60% discount is applied varies. Often it is applied in the middle of the calculation taking in to account a series of loadings and discounts based on the details submitted. And here is where it gets really confusing: Every company has a unique way of underwriting, based on years of statistical analysis of claims. The formulae they use are highly complex, as they need to strike a fine balance which enables them to get the best possible premium for a certain type of risk at a rate that is as competitive as they want to be in the market. If they charge too little they'll lose money. If they charge too much they won't be competitive enough to attract or hold customers. So, it's a precise balancing act. And, as a result, the end figure tends to bear little relation to that which people would expect if the insurer had just taken the full premium and then taken off 60%. So, it seems there is no single easy answer to the question 'how does NCB affect the insurance premium!' What if I don't have any bonus yet (or it has been reduced)? There is hope. Some companies offer a range of discounts. For example... Some companies offer accelerated policies where drivers can earn bonus in 10 months rather than 12. If a car is already insured and there is a necessity for a second, then many companies will give an introductory bonus if the other car is insured with them also. If the insured has been driving a company car, some companies will recognise that as NCB if they can prove they have been claim-free in the company car. Similarly, if an individual has been a named driver (insurance companies look particularly favourably on spouses in this situation) for a number of years and then gets a policy in their own name, some companies will offer an introductory bonus.

Legal Expenses Cover

Legal Cover generally covers drivers for those matters that aren't dealt with on motor insurance policies, including legal advice, costs and expenses to pursue such claims, or those arising from personal injury or death as a result of an accident while insured.

breakdowncover

Breakdown Cover

What is breakdown cover/insurance

25% Off Discount Voucher:
AA promotional voucher code: 1037 -
Click Here To Claim

Breakdown Insurance which is often referred to as breakdown cover will give you that bit of security when you own a vehicle that if you were to breakdown whilst driving that you can call the company up and they will come out (usually within 30 minutes) and try to either fix the problem (if small) at the roadside or if they cannot fix it they will take it to a garage of your choice (depending on policy) - depending on which policy you choose you can be covered for all of your passengers too and a higher premium will even cover hotel expenses and forwarding travelling expenses to where you were going on your destination, some also include homestart which will mean they will come to your house even if you have not started your journey yet.

For a basic policy you can expect to get covered from as little as £35 per year.

There are 3 main players in the Breakdown Insurance market, these are:

The AA
RAC
Green Flag

But many of the leading insurance companies such as Churchill also offer breakdown cover in this ever competitive market.

By law you don't have to own a contents insurance policy but for peace of minds sake it's well worth doing for the low costs involved with buying a policy online through one of our recommended partners on the right hand side of this text.

As the title suggests buildings insurance covers only the building of your property, if your house was flooded or damaged in a fire for instance then the insurance would pay for it to be repaired or rebuilt (depending on the extent of damage) - when insuring your buildings you don't cover it for it's market value but instead you cover it for it's rebuild costs, to find out how much you should insure your buildings insurance for we recommend this site where they will give you a guide.

If you are a homeowner with a mortgage then the bank/building society that provides your mortgage will require that thier and your investment is protected by buildings insurance, however if you own your own home outright then it's your choice but again we strongly recommend for the low costs involved that you do take out a policy for peace of mind and buying a policy online through one of our recommended partners on the right hand side of this text it won't cost the earth.

When you are going on holiday or a business trip you can take out Travel Insurance, this covers you against all kinds of things such as missing planes/trains or buses due to delays, loss of wallets, medical cover and legal expenses so whether your holiday involves activities such as a skiing or snowboarding trip or just a relaxing beach holiday Travel Insurance gives you the peace of mind to help you relax when you are in different surroundings.

There are many different policies ranging from 1 day trips to annual cover which if you are a frequent traveller we would recommend you taking a policy out as they are very good value.