The Rising Cost of Car Insurance
It has taken a while but the recession is now beginning to bite for many people. The cost of driving is one area that is constantly rising and for many people facing tighter budgets the choice between keeping the car and getting rid of it for good has become an issue. The cost of fuel is high and with uncertainty in the oil producing Arab world, is unlikely to drop significantly. Car insurance costs are also rising, thanks partly to two successive bad winters and a resulting rise in claims. In the poor driving conditions before Christmas last year the AA reported a rise of 23% in claims. This year's premiums will see the knock on effect of this. However, there are still ways to reduce your car insurance costs and this can mean the difference between keeping the car or not.Adding drivers Joining forces with your partner can save money on your policy. For households that can manage with one car having both of you on one policy makes sense. Insurers effectively see this as a better spread of risk. Even if you both continue to drive separate cars you can be added as named drivers on each others' policies. This can be especially effective if one of you falls into a lower risk category than the other.
Downsizing Before getting rid of the car completely simply consider downsizing to a less powerful, cheaper to insure model. Naturally more powerful cars are seen as higher risk and by downgrading you can save significant amounts. Also using the car less will help to save on car insurance costs. When searching for cheap car insurance quotes simply try changing the annual mileage to see how much you can save. Be honest about this on your policy - simply dropping the mileage but continuing to use the car as normal may invalidate your policy. If you can stop commuting by car this is a great way to reduce your mileage and save money. However, if your actual mileage looks like it is creeping up, contact your insurer to let them know.
Levels of cover Don't assume that the basic level of cover will be the cheapest. For young drivers, considered the highest risk, the three levels of cover are usually very closely priced, while for experienced drivers third party may actually be the most expensive. The actuaries who set rates of insurance may view those insuring on third party cover as more risky - on the basis that they are less likely to take good care of the car. Strange, but apparently true, as third party car insurance quotes can even be more expensive than fully comprehensive for some drivers!
Comparison sites Comparison sites offer a good chance to compare insurance quotes and this is the best approach to lowering your insurance costs, even if your renewal date is not looming. Try to use several different comparison sites and brokers to get the fullest range of quotes from different providers. Not all comparison sites feature the same insurers, so by checking several you will get access to the widest range of quotes.
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