Risky Business: Insurance Is Not An Optional Extra

Are you paying more than you need to for car insurance?  In these times of economic strife, many people do not shop around for cheap car insurance, and most businesses renew their insurance policies automatically rather than comparing quotes and trying to find cheap van or fleet insurance.

So, as insurance premiums continue to accelerate faster than a Bugatti Veyron, it may pay to check out these nine steps to finding cheap car insurance.

1.  Are you a low risk driver?

Some companies specialise in insurance for mature drivers or women and these can often work out cheaper.  This theory works on the principle that drivers over the age of 50 are more experienced and tend to drive more steadily than younger newly qualified people.  Lady drivers are reckoned to be more careful than men.  Therefore, in both cases the insurance company regards its risk as lower and offers slightly lower premiums.

2.  Regular drivers only

Make sure only regular drivers are named on the policy.  Multiple additional drivers can push your premiums up, especially if they have a less than clean insurance history or driving offence convictions.  Additional drivers can always be added for short periods as and when necessary.

3.  Excess

Increase your voluntary excess as this will bring down premiums considerably.  The excess is the amount you will have to pay towards repairs in the event of a claim.  If you opt to pay a higher excess amount, the risk to the insurer is reduced and therefore your premiums will be lower.

4.  Be alarmed

The fitting of an approved alarm, tracking device or immobiliser can attract a discounted premium.  Thieves may be less likely to target your car if they can see an alarm sticker in the window. Also, a tracker device will enable police to recover your vehicle more quickly in the event that it is stolen.

5.  Restrict mileage

If you don't cover many miles in a year, choose the restricted mileage option on your policy to instantly lower premiums.  Always be honest in your estimated mileage though—s if you have to make a claim and it comes to light that you are actually covering more mileage than you claimed on your insurance proposal, your policy may be invalidated.

6.  Young drivers

If possible, don't add an inexperienced or newly qualified driver to your policy.  Premiums are calculated on the youngest driver which usually means a lower no-claims bonus and consequently a higher premium.

7.  Car changes

Before you change your car, check for any potential uplift in premiums. Sporty cars can attract a high premium and often a slightly different, less racy model can make a huge difference in your favour.

8.  Garage it

If possible, garage your car and ensure you state this on your insurance proposal.  There is a higher risk of theft and accidental damage if you keep your car on the road, so garaging it will be reflected in your premium.

9. Drive carefully

This sounds obvious, but did you know that drivers who take an advanced drivers' course may be eligible for discounts from some of the major insurers?  Check out some of the insurance comparison websites for more details.

In conclusion

Motoring is expensive and for most people it's essential.  Use these tips to save money on your car insurance.  For more information, contact a company like A & R General Insurance Services Pty Ltd.