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My previous blog entry explained some of the common ways to try and save money on car insurance. So what else is there then? Well one that I didn’t mention was that you should look out for what type of car you are buying. For example soft tops / convertibles mean higher premiums. Why? Well from the lenders point of view it makes the car appear sportier than normal cars and therefore the driver and / or passenger are viewed as being more likely of being involved in a car crash. Therefore, if you wish to save money, always look at the car being purchase. Obviously the bigger the engine, the bigger the cost also but think is common knowledge among buyers anyway. Another option for saving is coming into fruition only of late as comparison sites have dominated the online car market for the last few years. However, it appears that the main car insurance lenders are now promoting that it could be cheaper for someone to come directly to them instead. Think of that what you will but it is a consideration that should be made. Another thing to consider is buying an older car. For example, insurance premiums decrease once a vehicle is more than five years old and again when it is ten years old. Therefore, buying older used cars could also be of benefit and could save you money. The reason for this being that these types of used cars are older, which means they are of less residual value and so this equates to cheaper rates. By having a pass plus certificate can also help cut insurance premiums but not all insurers actually ask the question so this isn’t a vital option to put in place. Finally, and one that isn’t exactly possible overnight is to get older! Yes, the older you are, the better the premium offered. Buying and insuring cars for people under the age of 21 can sometimes be quite difficult but it is these people that the lenders deem a risk; younger drivers with less experience. So, hurry up and get to 21! Once you are there, 25 is the next benchmark followed by 30 and then finally 50! By then, you shouldn’t be paying much……depending upon your current car type, engine size, amount of no claims bonus, previous claim history etc!

I don’t know about you guys but buying car insurance can be a right pain at times. The thing is the bigger sized engine that you get, whilst more speed is available – the cars increased insurance premium is also available! Sometime I just want to buy an old banged up used car and get cheaper insurance rates. So what can we do to help save ourselves a little bit of money? For starters the key is to always research the different lenders as it is surprising just how many of them differentiate in the way they calculate costs. In terms of the car itself, lower mileage can sometime decrease the size of the premium as can only using the vehicle for social, domestic and pleasure only. Those drivers using their cars for work increase the premium rate. The next step, which is deemed a bit of a risk in the event of a car collision, is to offer to pay more excess should there be a crash. Whilst this reduces the overall car insurance quote, it may mean more money at a certain point. By having your car on the driveway or even better in a garage can also shave some pennies off the quote as can limiting the number of people that you allow to drive your car. One option that many people do not fully understand is that if you are fortunate enough to have a little bit of money stashed away – paying the car insurance upfront and in one payment can be a good saving option. This way, the lender doesn’t get paid the interest that they would normally charge someone paying on a monthly basis. Finally, shop online! The Internet is the number 1 source of car advertising and many vehicle dealerships buy and sell cars online whilst offering car finance packages. Therefore car insurance is no different and you will find that because no members of staff are required to go through the quote with a customer, savings are made on administration, which is then transferred over into the quote that you receive. In most cases, 5% is automatically saved. Not many people know this but in a way it is common sense.

There are a few different types of cover that are used for car insurance. The main ones are comprehensive, third party and third party fire and theft. A comprehensive cover covers all aspects of an insurance claim such as accidental damage, accidents to passengers in your vehicle and passengers in other vehicles. Also covered is other peoples vehicles/properties and any medical expenses that are incurred. The next type of car insurance is third party. This usually covers injuries and damage to other people and their property and/or vehicle. Finally there is third party fire and theft, which covers pretty much the same as third party but also offers protection against fire or theft of your insured vehicle. Third party insurance is the cheapest of the three with comprehensive being the most expensive as it covers everything. However, although this may be the case, always check each quote / policy before entering into an official agreement as there are different levels of cover and agreed premiums to consider. For example, some may be based upon you paying a certain level of excess before a claim can be made. This can range from £100 to around £1,000 and can affect the overall insurance premium costs.

When you setup insurance for your car, the insurance company normally sends you two documents; certificate of motor insurance, which is your copy of the insurance required by the road traffic act and a policy document that outlines the type of cover you have and the full terms and conditions etc. One additional piece of documentation that you may also receive is a cover note, which is basically a temporary insurance certificate. Always be sure to thoroughly read each piece of document you are sent from the insurer and become familiar with each. Sometimes errors can be made and so it is important to check that all of your details are correct and that the correct level of cover is in place. If not, you will find that in the event of a claim, the insurer has the power not to pay out if any of the information is incorrect. Therefore, if you do notice any discrepancies within your certificate or car policy documents, be sure to contact the insurance company immediately and have them send out updated documents. It is advisable to keep all documentation in a safe place and make copies if necessary.