UK Cheap Car Insurance
The Internet has been the motorist's greatest asset when seeking cheap car insurance. Motorists should shop around to get the best deals on car insurance.
Costs of Car Insurance
Car insurance has two basic components – the premium and the excess. Premiums are those monthly payments everyone must make for their cover. Usually this is what people want to minimize since it's the cost they see every month. If motorists get into an accident, the excess is the amount they must pay before the insurer begins to pay out. The excess and the premium are inversely-related. If a motorist has a high excess, his or her premium will be lower.
Monthly premiums are based on a number of factors – gender, age, occupation, location, type of car, annual mileage, and so on. This is all in addition to the motorist's driving history. Each of these characteristics holds a certain amount of risk for the insurance company. Riskier motorists have to pay higher premiums, so those seeking cheap car insurance should try to make themselves less risky for insurers. People who are traditionally considered high risk may want to consider insurance companies that specialise in covering riskier motorists.
Keeping a clean driving record is key to lowering one's insurance premium. This includes small things like parking violations. Safety measures like alarms and immobilisers also lower premiums. So will parking in a garage or driveway and not on the street. Motorists buying a new car should investigate insurance costs – generally, smaller cars with parts that are less expensive to replace and repair have lower insurance premiums.
Insurance companies offer many discounts, so motorists should be sure to check. Companies reward safe drivers with a no claims bonus, offering motorists a 30% discount for one year of claim-free driving. This can rise to as much as 65% or 70% after several years, although specific percentages vary by company. If a motorist doesn't drive very much, many companies offer a limited mileage discount. There are many other types of discounts, as well.
Higher Excess and Lower Premium
Motorists can reduce their monthly premiums by keeping a higher excess. Whether or not this is a wise idea depends on each individual's financial situation. Premiums are required – they must be paid no matter what. On the other hand, a motorist only needs to pay the excess in the case of an accident. Keeping a higher excess may make sense for those who have reserved enough money to cover the excess, who feel they're unlikely to get into an accident and who don't want to pay monthly premiums. But motorists in a shakier financial position should be wary of agreeing to an excess they can't pay.
Many sites allow motorists to get quotes from several companies at once. They should take advantage and let the Internet do the hard work of shopping around.
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