Motorists can reduce their car insurance premiums by following some simple steps

With many households forced to tighten their belts and make savings, there are a number of ways drivers can help to lower their car insurance premiums.

Shop around for the best deals, especially if you are looking to buy or renew a cover policy. It is important to spend time researching and looking around for the best deals and ones that are suited for your own personal needs. Many insurance companies may reserve the more competitive policies for new customers, so by staying with your current policy provider, you are less likely to be offered the better deals.

Use a comparison website that will allow you to compare the deals on offer easily and quickly to help you select the right policy for your needs. The best way to cut your car insurance costs is to avoid making a claim and losing your no claims bonus. Not making a claim on your policy for a year could see your insurer offer a discount when it comes to renewing your policy.

Consider adding an additional driver to your policy because this could save you as much as 20 per cent on the cost of your insurance. Just by adding a spouse can help because insurers view married people as safer drivers. If you are a young or inexperienced driver, naming an older motorist with a clean record will help to reduce premium costs. Where possible, avoid paying your car insurance policy in monthly instalments. This is because the insurer may charge interest for doing so. Try to pay the full amount in one lump sum or use a 0 per cent interest credit card and pay this off as soon as you can afford to do so.

Consider paying a higher voluntary excess because your insurance company is likely to reduce the price of your premiums. It is important to set your excess amount at an affordable level. Do not make or add any modifications to your vehicle because this will lead to your insurance company hiking up the price of your premiums. Insurers consider powerful cars more likely to be involved in accidents, so even small changes that affect a vehicles speed or performance can lead to your insurance costs being increased.

Author: Lee Sibbald, March 4, 2010
Filed under: Fleet news