ABI Suggests Ways To Possibly Lower Car Insurance Premiums

An awful lot of motorists have seen their car insurance premiums increase in the last year or so. In a document entitled “Lifting The Bonnet On Car Insurance” produced by the Association of British Insurers (ABI), one of the areas that is mentioned by them is how you may be able to reduce the amount that you are paying for your car insurance. As this is something we are sure you would agree motorists would love to be able to do, below we highlight some of those possible ways.

The ABI has suggested some possible ways that motorists may be able to lower their car insurance premiums.

How you pay for the cover

If you are able to pay for the total cost of your motor insurance upfront as a single premium then you may find that you will end up paying less for your cover than if you elected to pay monthly for your cover. This is because many insurance companies actually charge you interest if you pay monthly whereas if you paid a single premium covering the total annual cost of the cover you would not be charged interest.

Choose larger voluntary excess

If you are prepared to pay more towards the cost of any claim that you make on your policy (excess) perhaps following a road traffic accident then the insurance company may provide the cover at a lower premium.

Shopping around for your car insurance

If you are arranging car insurance for the first time or already have cover in place and have just received your renewal notice from your exiting insurance company then you may wish to shop around and get quotes from a number of insurers to give you a greater opportunity of obtaining the cover that you require for a competitive price. There are a variety of sources that you can obtain such quotes from such as price comparison websites and insurance brokers.

What do you use the car for?

It is important that you are covered for what the vehicle is utilized for but if you are able to limit the use of your car to social, domestic and pleasure purposes then your premium may be lower than if you were also covered for business use.

Driving a less powerful vehicle

As well as many other factors, it is quite possible that an insurer will also take into account how powerful your car’s engine is when working out the cost of insuring it as a car with a less powerful engine is likely to be cheaper to insure than one with a very powerful engine.

Vehicle Security

If you park your car overnight in the garage and/or if you have any security devices fitted such as an alarm then you may be able to lower the cost of your cover as this is less of a risk to the insurer of your vehicle being damaged or stolen.

Telematics Cover

This sort of cover also known as “Black Box” insurance monitors a number of factors such as how, when and where you drive your vehicle and the cost of such cover can be cheaper than conventional motor insurance.

You can read the above document that covers a number of other things involving motor insurance by visiting the ABI website.