Cutting the Cost
For many people, especially those considered to be high-risk drivers, the cost of car insurance can be a huge financial burden: getting the best deal is crucial. If you are particularly high-risk, some insurers may even refuse to insure you, or make their quote ridiculously high so as to discourage you from their insurance policies. The difference between the estimates you are given can be huge.
The most important factor that affects the cost of your car insurance is actually your choice of insurer. Car insurance is a highly competitive market. As a result, car insurance providers try to attract a certain consumer group and provide a good deal specifically for them. If your insurer offers good deals to young drivers and you are a mature driver with the maximum no claims discount you are not likely to get the best deal. Insurers do change their target group regularly however, and so even though an insurer gave you a large estimate last year, it does not necessarily mean that their estimate this year will not be competitive.
Compare the actual level and type of cover offered by a particular insurance policy. Additional benefits may be included, which will increase the premium. If the benefit is not useful for you, you may wish to opt for another policy, or ask your insurance provider if they can remove the benefit in exchange for a policy discount.
Payment Plans
If you are attracted by the possibility of paying your premium in monthly installments, you should consider the cost first. Most insurers will charge a percentage fee for this facility which is often as much as thirty percent a year. You should aim to save up for your car insurance premium each year and pay the yearly amount in one lump sum. If this is not possible, you could try other, cheaper forms of financing, such as spreading the cost across an interest free credit card.
Additional Drivers
Adding a named driver to your policy can reduce the cost of your insurance by a significant amount. If you are a young driver in the high-risk category, adding a parent with an excellent driving history as a named driver can reduce the cost of your insurance. For more information see Additional Drivers.
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