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Finding the Best Price Motor Insurance

By: Tracy Wilkinson - Updated: 25 Jan 2013 | comments*Discuss
Car Insurance Motor Insurance Budget

So you’ve found the perfect car - or perhaps you’ve decided that your current motor insurance provider is charging you too much for your yearly insurance renewal. Considering the hundreds of different car insurers out there, how can you make sure that you get the best deal for your budget?

Shop Around

This is a mantra that you’ll hear repeated all over the place when ever you buy yourself anything new – but there’s a good reason for that – IT WORKS! If you’re online, you don’t have to trail around hundreds of websites filling in lots of forms - there are some great comparison websites out there, such as www.moneysupermarket.com and www.comfused.com that will do all the hard work for you.

All you have to do is visit the comparison site, fill in one form, and answer a few questions and they will search a list of the UK’s insurance providers to get you the most competitive quote for your needs. It’s an excellent way to do things – and if you’re not online, you can ring and get them to do it for you over the phone.

It’s worth remembering though, that some insurers, for example Direct Line, don’t use comparison sites – so if you’ve had a recommendation for a particular insurer that you don’t see in a comparison list, you might want to do a couple of single quotations, alongside your results – to make sure that you are getting the best deal.

Choose your Car Carefully

Every newly launched model of car is given an insurance group classification that car insurers refer to when they calculate yearly premiums. By choosing a car that is in a lower insurance group, you can reduce the amount of your premium by quite a large margin - this is most effective if you're flexible about the type of car you want and you don't need a big family or performance car.

If you can’t decide between the Ford Ka and the Alfa Romeo 147, check out the insurance group ratings and see if that tips you in either direction. Smaller engines usually equal smaller premiums and lower road tax costs into the bargain. Age is a factor too; if you aren't fussy about having a brand new car, even a one or two year old car can make a big difference to your premium cost.

Think About Security and Where you Park

Modern cars come with a whole host of security options and getting a car with a factory fitted alarm or immobiliser or getting them fitted yourself can bring down your premium. If you have a garage, then it will be cheaper for you to park your car in it, than on the road. More than 50% of car theft and vandalism occurs overnight, so it makes sense that parking your car in a garage, or at least off-road in a driveway will reduce the chances of it being your car that is targeted.

Think About the Miles you Cover

When you fill in your insurance forms, you’ll be asked how many miles you do on average and are likely to do over the coming year. It’s better to slightly over-estimate rather than under-estimate as it can invalidate your claim if you’ve done a lot more mileage than you expected to. If, however, your mileage is turning out to be less than you initially thought it would be – if for example you have changed your place of work, or are using public transport more often, then make sure you tell your insurance provider as this could work out cheaper for you.

Get More for your No Claims Bonus

Different insurers work out No Claims Bonus (NCB) in different ways although the standard is that for each year of driving that you are accident free - or at least not at fault for any accidents you might be involved in, you get a year’s NCB. This usually goes up to 5 years and can be worth up to 75% if you have the whole lot. If you change your motor insurer, you can take your no-claims bonus with you, so don't think that you're stuck with one provider to keep your discount high.

If you have been sharing a policy with your partner - for example if you've shared a car, then you may be able to transfer the bonus to your separate policies if you buy a second car. That way you can get a quote for each of you being the main driver with the NCB and see which one works out cheaper! This can vary from company to company - some will only apply NCB to the policyholder, while others will include named drivers, so make sure you read the policy carefully when you take it out as it can affect your discount in the future.

Assistance from Experienced Drivers

If you still live at home with your parents, it can work out a lot cheaper to have one or both of your parents (depending on their driving history/NCB etc.), put on your policy as named drivers. Although adding drivers can push your premium up, adding experienced, mature drivers can also bring it down.

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Same question I have a Citroen Xantia 110 bhp 2Ltr year 2000 and have just paid £220 road tax is this right Allanmc
allanmc - 25-Jan-13 @ 10:18 AM
MACKNY - 22-Dec-12 @ 11:44 PM
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