The following is a guest post by Richard Plews.
We all have experienced the dramatic increase in car insurance over the past few years. Our household car insurance has almost doubled in the past three (3) years and that is without any claims! Our insurer states it is just the increasing costs for them to do business and the number of compensation claims they are experiencing and paying out on.
We all have seen a rise just in the number of adverts for compensation claims, so it makes sense that the number of people actually making claims would rise as well.
So what can we do to try and save money on car insurance? Well a few things.
Shop around! Not enough can be said about doing this and there are many insurance sites out there now doing the shopping for us. Many of us get stuck in the rut of who we have as our insurer we just stay with and figure we are getting the best deal out there. But it is a competitive business world out there and we need to seek out the best deal for us based on our circumstance.
Some insurers offer discounts to those drivers over age 50, some offer discounts if you only drive a limited number of miles each year. So shopping around is rule number 1!
Raising the deductible on your car insurance can reduce the premium as well, but this needs to be done cautiously.
The deductible is the amount you may be required to pay should you have an accident. For example say you have an accident and the repairs to your car will cost $2500, and your deductible is $250. Then the insurance company is only to pay $2250 for the repair, leaving you with the deductible of $250 out of pocket.
By increasing the deductible, most insurance companies will reduce the premium as raising the deductible limits their exposure or the amount they will need to pay.
Drivers need to be cautious in making this change as they need to be able to afford the increased deductible should they have an accident or crash.
For young drivers we all know how expensive it is now for then to secure auto insurance. In some instances the premiums can be thousands of pounds a year, and more than the value of the car insured!
But some insurers now are offering a new monitoring gadget or piece of technology that allows young drivers to sort of pay as they go, and rewards good, safe driving habits. It is a little black box sort of gadget that is attached to their car, or the car they will be driving. The black box monitors the driving habits of the young or any driver. It monitors braking, speed, cornering, miles driven, etc, to give feedback to the insurance company of how safe the driver actually is.
While there may be an initial cost to have this box installed, the savings over a period of time can more than make it worthwhile.
Lastly there are the no claims discounts the majority of insurers offer drivers. These discounts can vary among insurers and when you are shopping around you need to inquire specifically about these.
Some insurers offer a three (3) year no claims discount and some offer even further back discounts if you have had no claims or five (5) or more years.
Also some insurers will allow a minor accident not affecting your no claims discount. These are important questions to get answers to when shopping for car insurance.
So there you have just a few ways to reduce our cost for auto insurance and overall monthly expenditures.
Richard Plews is the CEO and founder of the UK’s leading life insurance quotation provider www.lifequotes4u.co.uk. He is very passionate about the Lifequotes4u Blog which has a growing number of regular readers. In his spare time he enjoys cricket, golf and white collar boxing.