Motor Insurance Cost Reduction Tips

Garage your Vehicle
If you have a garage then you can save on your motor insurance costs simply by using it whenever the car is not in use. If you have a drive then use it. The use of your drive and /or garage will help drive down insurance premiums. The lower the risk, the lower the insurance cost.

No Claims Discount
No Claims Discount (NCD) is the traditional way of reducing your car insurance premiums as insurance companies are happier to reduce the cost of your policy if you can demonstrate that you are a lower risk in terms of previous claims. Discounting methods vary depending upon the number of years of NCD you have built up but it can be as high as a 60% discount off your premium. For a small fee you may be able to protect your NCD which will let you make a limited number of claims before your discount is affected.

Multiple Policies
Nearly all UK insurance companies offer different insurance products such as home, car, travel etc… We all have various insurance needs but if you buy your policies from one insurer then some companies will offer discounts on your premiums. This can work out better for you both cost wise and in terms of convenience.

Multiple Cars
Similar to placing all your different insurance needs with one company, the same applies if you have more than one car. In many cases your overall quote will be reduced by insuring more than one vehicle with the same company. This can work out better for you as you only have one point of contact for all your motor insurance needs.

Car Safety & Security
Today modern cars are built with many security features as standard. However by speaking to your insurers you can find out which equipment they recognise the value of and therefore will allow them to reduce your insurance premium. It is not only your traditional alarm systems that can reduce your premium, also consider fitting trackers and immobilisers. Reduce the risk, reduce the premium.

Limited Mileage
Many motorists in the UK reduce their premium by limiting the amount of mileage they do each year. From the insurers perspective they see lower mileage motorists as lower risk due to the fact that they will spend less time on the road. You will asked your annual mileage when you obtain your quote so if you're a below average mileage motorist you should benefit from reduced premiums.

Modified Cars
If you are planning to modify your car, check the implications with your insurer. Most insurers hike the premiums up if cars are modified. If you are buying a modified car or kit car then speak to a specialist insurer in providing modified car insurance. Many of these specialists will save you money compared to the major insurance brands on modified cars.

Motor Insurance for the Over 50s
For motor insurance companies in the UK the average over 50s driver represents a lower risk compared to average UK car driver, accordingly the premiums are often lower. The older driver often has a proven track road of careful driving which helps reduce the premium. Seek out a company dedicated to over 50's motor insurance in the UK if you feel your current insurer is not rewarding you.

Student Insurance
In the UK there are now more companies that specialise in insurance for students. Sometimes student car insurance can be cheaper if you are living with parents rather than at halls of residence. Traditionally seen as a higher risk group, student insurance premiums are now more reasonable but there are still big cost differences depending upon whether you are buying Third Party Fire and Theft or Fully Comprehensive Insurance. Shop around and look for online car insurance discounts where ever possible.

Driving Qualifications
The Institute of Advanced Motorists run the Advanced Drivers Test which assesses safety, driving performance, general ability, control and speed. If you pass the test then you will gain advanced motoring qualifications which a number of insurers recognise and will offer cheaper premiums to these drivers.

Voluntary Excess
Save money on your motor insurance premiums by opting for a higher voluntary excess on your motor insurance policy. There is always a minimum level of excess everyone has to pay but by requesting a higher level of voluntary excess you can reduce your car insurance costs. Be aware that a higher voluntary excess means that you will have to pay out higher costs in the event of a claim.

The opinions expressed are those of the author only. The material is for general information only and does not constitute legal, financial or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation by an FSA authorised company where the market is FSA regulated.