How to Cut Your Car Insurance Premiums

By Alex Gregory

Latest figures from the AA British Insurance Premium Index show that the upward trend for car insurance premiums continued through the third quarter of 2008 rising more than 3.1 per cent - the equivalent of a £22 leap.

Over the year, premiums have leapt by 7.6 per cent in total - around £50 - to an average of £724.68. With the economy suffering a downturn and inflation reaching a 16-year high, the pressure is on motorists to take the initiative in an effort to drive their premiums down.

So if the insurers aren't reducing their prices, what steps can consumers take?

Many motorists are choosing to downsize their vehicles - cars with smaller engines are not just more fuel efficient and generally better for the environment, but they are also subject to lower car insurance premiums because their drivers are less likely to be involved in high-speed accidents.

If you don't want to leave your vehicle behind then pay close attention to how you drive it. Driving safely and avoiding accidents can help you build up a no-claims discount - potentially slashing premiums by around 70 per cent after five years. Avoiding driving convictions too will pay off - not only will you avoid fines for speeding and reckless driving, but you will avoid insurers heaping as much as 74 per cent on to your annual premiums.

Security is also vital. Many insurers offer discounts if you install an approved alarm and immobiliser, while nearly all insurers include discounts for parking in a garage overnight. If you have the cash to hand, it's also worth paying your premiums up front each year as this will cut out monthly interest charges.

The number one way to save however is to compare car insurance online - most car insurance providers offer their most competitive deals through the internet so use a comparison website to shop around at renewal time.

Cheapest Secondhand Cars to Insure

By Alex Gregory

There are many factors that influence the size of a car insurance premium but few are more important than the vehicle itself. British drivers looking to buy a second hand car over the next year are likely to face a number of budgetary constraints in these tough economic times, so considering all vehicle costs before buying - including tax and insurance - is vital. Now a car insurance provider has revealed its top ten cheapest second hand cars to insure in the UK.

Topping the list is the Smart Pure for which average premiums are just £350.84. Indeed smaller cars with low performance engines dominate the list - the Fiat Seicento, Skoda Fabia, Toyota Aygo, Nissan Micra, Citroen C1, Renault Clio, Suzuki Wagon R, Volkswagen Fox Urban and Peugeot 107 complete the top ten.

Buying a second hand car will usually allow you to earn cheaper car insurance because the value of the vehicle greatly depreciates over the first three years and the cost of a replacement follows suit.

Of course while the type of vehicle you buy is an important consideration, it's also crucial to gather as many car insurance quotes as you can as the differences between premiums from one insurer to another can be astronomic. For example a man aged 32 living in Birmingham with one speeding conviction could pick up a premium on a Volvo V70 T S for as little as £581.95 through swiftcover.com and yet would pay £1,420.91 a year to insure the same car with LV=, according to the research. Therefore it's crucial to shop around.

It's also worth considering other ways to lower your car insurance. For example, installing a car alarm, parking in a garage overnight, paying annually instead of monthly and agreeing to a mileage limit could all help you earn cheap car insurance.

Bond Could Pay Less For Car Insurance Than Del Boy

By Alex Gregory

It seems remarkable that fictional character Del Boy Trotter in his trusty Robin Reliant could pay more for car insurance than James Bond in his Aston Martin DBS - but if Del Boy fails to shop around that could be the case.

Research by a comparison website has revealed that whereas Del Boy will pay an average of £623.50 on his car insurance in his hometown of Peckham, he could be hit with premiums as high as £928.50 through some insurers. James Bond meanwhile will typically pay £910.15 to insure his high performance vehicle, but could pick up a quote as low as £885.65 if he shops around.

Action archaeologist Lara Croft could save even more - the average premium on her Landrover Defender 110 is a mere £341.82.

So how can a market trader potentially pay more than an international man of mystery and an action hero?

One of the key reasons is that Trotter lives in Peckham which has high car crime and accident rates compared to Bond and Croft's hometown of Chelsea. However, Del Boy could still save as much as £566.44 if he shops around.

In an effort to drive his car insurance premiums down, Del Boy's efforts and indeed those of any driver should not end there. If you don't want to move away from the town you live in you can still secure your vehicle against crime by fitting a car alarm, immobiliser and by parking in a garage overnight, all of which could earn you a discount with an insurer. If accident rates in your area are high then try and build up a no-claims discount.

However, the fastest way to save money is to compare car insurance online. A comparison website can help you find dozens of car insurance quotes in minutes.

Insurance For Rented Cars

By Andries Malan

When renting a motor vehicle, it is vital that you take out car insurance. Most car hire companies include the insurance in the fixed fee, thus giving you no choice but to insure the vehicle. This is not necessarily a bad thing, because should the vehicle be insured it is protected may anything go wrong whilst you are using it.

If you are renting a car, it usually means that you are in an unfamiliar environment, driving on unfamiliar roads. When trying to navigate, and find your way around, it is safe to say that you are not focusing 100% of your attention on your driving skills. This puts you at a greater risk of being involved in a motor vehicle accident. Unfortunately car accidents are expensive, and so are holidays. It would be horrible to have to pay out of your own pocket for a car accident whilst on holiday because you did not take out insurance on your rental car. There are also other factors to take into consideration, such as the fact that you may not be completely aware of the dangers crime in a certain area poses to your hired vehicle. Because you are not completely knowledgeable of the area, you may not know just how dangerous the place you are parking your hired car in really is. Many cities also have hi-jack hot spots and other places where car theft is more likely to occur.

Most car hire companies include an insurance fee in their fixed price. This may make their fee more expensive, but it is not a risk they are willing to take. Some people may be angered at having to pay an insurance cost without their consent, but this is not something most car hire companies are willing to budge on. Once you have accustomed yourself to the notion that you will be paying an insurance fee included in your car hire fee, it is wise to familiarize yourself with the kind of cover you will be receiving.

When the insurance fee is included in the car hire cost, it will usually be standard cover, which means that should you be involved in a motor vehicle accident, the rental car and the other car will be covered. If you are not comfortable with such a simple cover on your hired car, you can look into paying more for more comprehensive cover. Comprehensive cover options, in addition to protecting your vehicle against damage, can include cover against theft, hijacking, fire and injuries to parties involved, including yourself. There is a range of different cover options for you to look into, even insurance that will pay out for trauma counseling and hospital fees should anyone be injured.

When going on holiday, insurance is almost certainly the last thing you would think about when wondering how to best enjoy yourself. Unfortunately, accidents and problems can happen at anytime, and anyplace. It is best to ensure that you are protected should anything go wrong, because a nagging worry will do no good for your peace of mind, and that is the main reason we go on holiday - for peace.

Andries Malan is the owner of http://www.quantisure.co.za, a website that offers comparative quotes for the cost conscious car insurance quotes shopper in South Africa.

Car Insurance and the Postcode Lottery

By Rachael A Miller

Many things determine how much your car insurance will be; your age, sex, claims, the type of car, and even your postcode. People are being charged higher car premiums according to the location of their house. For example, car owners who live in the North West or in London pay on average an excess of £250 for their car insurance than those who live in those areas which are thought to be safer, such as the South West.

Within the last twenty years, insurers have begun to split regions up into categories depending on their crime rates against motor vehicles, and then charging those people who live in the worst affected areas more for the premiums. This method of determining people's car insurance has created a definitive postcode lottery. It's not just the type of area you live in, for example, rural or urban, it could even come down to the street you live in. It has been found that premium prices can vary within a mile radius, because of increased crimes rates in the next town. An example of this is a small town in Wales, where a quotation for a male in his thirties hit just over £600, whereas the town less than a mile away, under the same postcode, was quoted as £100 less.

Unfortunately, there aren't many ways to avoid this lottery, but you can save yourself some pennies by doing some small things: like parking in a garage, not making visible external or internal changes that could attract vandals, and the most simple of all- choosing a car which will be cheap to insure.

You may be able to find car insurance by using the internet to compare car insurance quotes online. By browsing online, you are more likely to find cheap car insurance as the choice will not be limited to major insurers.

Will Auto Insurance Always Be Expensive When You First Purchase It?

By Kian Chew Chong

Whether you are helping someone buy their first auto insurance, or you are looking for yourself, you will find that there is a lot to think about when you are considering auto insurance companies and the right kind of auto insurance coverage that would be best for you. While you are sorting through things like deductibles and premiums and the car insurance rate that is going to be best for you, you may find that you are started by the price! Is auto insurance always this expensive when you are looking at an insurance premium for a new purchase, or are you looking at rates like this forever? What are your choices going to be under auto insurance law and what can you expect from cheap car insurance even if you are going to be a new driver and need to handle all of these things yourself? Take some time to really think about your options and to figure out what you are looking to do with your payments.

The first thing that you will find is that if you are purchasing auto insurance coverage, especially if you are young, that you are going to see some high rates. The auto insurance companies tend to take a lack of experience as something that makes you more hazardous as a driver. You will find that when it comes to the online insurance quotes that for the most part, young men are considered a higher risk than young women, though you should keep in mind that this will even out when you hit the age of twenty five. For a lot of people, provided that there have been no accidents or no problems, this is something of a magical age when your insurance premiums drop.

If you are young and if you are purchasing your first auto insurance coverage, remember that there are things that you may be able to do to lower it. For instance, see if taking classes of any sort will drop it a little. There are many different insurance companies that will give you a much better rate if you are willing to go to traffic school or take classes that will make you a more risk aware driver. Although going to the classes can take up some time, you will find that this more than anything else can help you get good car insurance.

Remember that when you are looking to make sure that you are getting good work when it comes to getting lower online insurance quotes that you can sometimes do very well with just getting a policy and then after having a spotless record, looking to lower it. Make sure that you get no moving violations and take the time to make sure that your insurance company knows this. This is something that can mean a lot when you are looking to move ahead.

Take some time to learn about what your auto insurance coverage really means and what you can do to get rates that you can live with that will still cover you!

Kian Chew is a car insurance expert and owner of Car Insurance Hot Zone. Car Insurance Hot Zone helps those who wish to lower their car insurance cost for life by using a few basic rules and some strategies which few people know. You can instantly view the secrets by visiting http://www.CarInsuranceHotZone.com

6 Tips For Filing Your Auto Insurance Claim

By Julian Floyd

Preparing to file an insurance claim.

Filing and submitting a claim to your insurance provider can be a quick, simple and easy process. Here are a few pointers to help you along the way if you have an accident.

1-You should understand your policy beforehand. Your insurance policy is a contract between you and your provider outlining which damages are covered, which damages are not, and the deductibles required for the provider to meet those obligations. Asking the right questions about your policy before you need to make a claim is important.

2-When it's time to make the claim, call your agent first. Getting your agent involved should be your primary goal at this point. Your agent is basically your customer service representative for your provider, and can usually help speed up the entire process. Furthermore, some insurance companies set time limits for filing a claim.

3-Documentation is key. In order to keep things as simple as possible, you must have the proper paperwork. If you have been involved in a collision, it is critical to have a copy of the police report. If you must make immediate repairs to your vehicle, document that paperwork as well. Photographs and/or videos of your vehicle can also be beneficial if you've made costly modifications.

4-Get a second opinion. It can never hurt to have a second opinion on the vehicle's repair. In some cases, an insurance adjuster can immediately approve your claim if you have an estimate from a reputable source.

5-Playing the waiting game, but not for too long. After an adjuster looks over your claim, it's really as simple as waiting for a check. Each state has requirements regarding how quickly a claim must be responded to. If you feel that your insurance provider is moving a little too slowly, call your state insurance department first. Calling a lawyer to represent you can usually create the wrong environment for you and your company. Also, your agent and provider can only speak about the matter with your lawyer if you choose legal representation.

6-Don't file too many claims. Insurance companies avoid high risks. Filing multiple insurance claims can have very negative effects on your relationship with your provider. Some companies will even cancel your policy if you file too many claims in a certain period of time.

This article was written by Julian Floyd. For risk-free no-obligation insurance quotes, visit http://www.thebestonlineinsurance.com Or visit my blog at http://2jonline.blogspot.com

Five Tips to Cut You Car Insurance Premiums

By John A Moore

Now is a more important time than ever to find ways to save money on your car insurance. If you own a car you will be more than aware of the huge costs involved in addition from rising fuel prices, maintenance to repair costs. Car insurance is now the main day-to-day cost for many UK motorists however you can cut your motor insurance premiums by following the tips and advice in this guide.

1. Choose Your Car Carefully

Most of you will already own a car however for those who haven't yet purchased a car and those considering an upgrade it is always important to factor in costs involved in running the car especially the motor insurance premiums it is likely to attract. All cars are rated on a scale of 1 to 20; a Group 1 car would be a Ford Fiesta 1.25 and at the other end of the scale, a BMW 5-Series M5 Group 20.

2. Location, Location...of your car

After your car choice the next major factor that affects your premium is where you live. If you stay in a city it is the riskiest place for insurers therefore premiums are higher. Those living in or considering a move to the countryside can expect to see their car insurance premiums reduce by as much as half. You can receive a small discount for storing your car on your driveway or if is kept in a garage overnight you can expect a much bigger discount. It is also possible to get a discount on your car insurance premiums by agreeing to a limited annual mileage.

3. Protect Your No-Claims Discount

Once you start to build your no-claims discount you can expect substantial discounts on your insurance premium and those who have several years no-claims can benefit from very cheap car insurance. If you lose your no-claims it is a disaster as insurance premiums will rise drastically however some insurance providers recognise even the most careful drivers can have bad luck and end up in an accident once in a while and offer a "protected discount", for a small charge, once you have reached the highest level of no claims discount.

4. Add Security

You can use a steering wheel lock to protect your vehicle and give you peace of mind unfortunately though it won't reduce you car insurance premium. To bring down your premium you need to install a pukka immobiliser; which is of 'Thatcham Category 1', the highest level of security. Its worth researching to see the impact on car insurance premiums however as it's expensive it may only be worth doing if you car is of high value.

5. Shop - Compare before buying car insurance

Car insurance is a highly competitive market and is available from a huge array of providers. The quickest and least stressful way to search the market is to use a comparison site which will allow you run a detailed search, giving you quotes from the car insurance providers without having to do the leg work yourself and allow you to compare in detail the offers and features of the different car insurance companies. Taking just a few minutes to run a search can potentially save you hundreds of pounds on your car insurance!

How to Avoid Car Insurance Scams

By Chris Cdutoit

Car insurance scams are an increasing reality these days. It's easy to think it doesn't have anything to do with you, but the reality is that other customers, including you, pick up the tab when anyone scams an insurance company. People who are involved in scams often don't realize the effect of their actions. But the effects are far reaching.

Your Policy is a Legally Binding Document

When you agree to an insurance policy, you are entering into a legal contract with the insurance company. You should read it carefully, and be aware of your responsibilities, as well as your insurance company's. Your policy should clearly state under what circumstances you are covered, or not covered. For instance, you will probably not be covered if your car is insured for personal use and you drive it for work purposes. Or if someone who is not on the policy drives, they won't be covered. If you lie about the circumstances under which you are making a claim, you are breaking your contract, and the law!

Your Premium is a Reflection of your Risk

When an insurance company agrees to insure you, they make an assessment of the risk associated with your policy. Many factors go into this assessment, not just your driving record, but where you live, your gender, age, and where and how much you will drive your car. When your premium is calculated they ensure that statistically, averaged over many policies and claims, they can afford to provide all their customers with coverage.

Car insurance is expensive because replacing and repairing cars is expensive, and so is medical treatment. Some may find it tempting to lie about their circumstances in order to lower their premiums, or make an illegitimate claim. So easy to say you weren't driving your car for work purposes, if you weren't covered for it. But driving a car for work increases the risk of an accident, and means the insurance company is undercharging you. When insurance companies undercharge for insurance, or pay off illegitimate claims, they lose money.

Everyone Pays for Scams

Insurance companies do not have deep pockets to pay for illegitimate claims. They are businesses like any other, and if their expenses go up, the only way they have to balance their books is to raise their rates. This affects every customer. That means that a small portion of your premium is probably going to have to pay for someone else's insurance scam. That's why insurance companies are diligent in making sure that every claim is legitimate. They are protecting their honest customers by ensuring that every claim is valid. When someone scams an insurance company, they aren't scamming a nameless faceless business entity; they are really scamming their friends and neighbors.

The author specializes in car insurance in South Africa. To read more on car insurance, please visit Insurance South Africa.

Multi-Car Insurance Ensures Complete Safety For Your Cars

By Charle Lawrence

If you have more than one car then it is very essential to get all your cars insured. There is no safety and security of cars until and unless these are being insured. This is so because at any time your cars can meet accidents, theft or any other damage. So, the best step that can very easily be adopted is to get the multi car insurance.

For searching the best deal and the best insurance policy you can take help of the online services. As several types of insurance policies are available it will really help you out in getting a good deal without wasting time. You can interact with the lenders and negotiate regarding the policy and the facilities. Thus, you will be able to avail discounts too which some lenders use to provide when you insure multiple cars with them.

Mainly, three types of insurance policies are being found in the market. One such type of insurance covers all kind of casualties that will occur to your car. These are generally expensive but can assure you full tension free living. Your car will thus be very safe in this policy. The second type of insurance policy provides you security if your cars gets damaged in fire or gets theft. The last policy is known as third party insurance and it provides you help when you cause damage to other cars in accidents. The penalty that you have to pay to others for destroying their car will be provided by these insurance policies. These are generally cheap in cost. It will never support you financially when your own car gets damaged or faces any loss.

As you will be adopting an insurance policy or multiple numbers of cars so it is very easy to get the policy done in low cost. Taking help of a specialist will prove to be helpful for you. He can help you better in getting the appropriate multi car insurance.

Charle Lawrence is associated with insuranceb . He holds a Master's in finance from Cambridge University. To know more about multi car insurance, holiday insurance, quote holiday insurance, travel insurance please visit http://www.insuranceb.co.uk/