Are you paying too much for your car insurance? If your wallet's empty by the end of the month, it might be time to start shopping around.
Are you paying too much for your car insurance? If your wallet's empty by the end of the month, it might be time to start shopping around. There are countless factors that play a role in defining your risk profile, which in turn has an impact on your monthly premiums. As such, it's important not only to understand how these monthly payments are calculated, but also to find ways to save based on your unique personal circumstances.
No two drivers are the same, which is why car insurance premiums are typically calculated based on a number of diverse factors, including your age, location and the type of car you're currently driving. In short, your insurer will offer you cover based on the likelihood of your car being stolen or involved in an accident, based on historical statistics.
More expensive cars are more likely to attract a higher premium, due to the fact that they're more costly to repair and replace in the event of theft or an unexpected accident. That said, there are also certain cars that tend to be targeted more by thieves, and thus represent a greater risk for the insurer, especially if they're easy to steal. Remember that these premiums can increase over time, in line with repair costs, which are influenced by inflation irrespective of the vehicle's age.
Another factor to take into consideration is the regular driver of the vehicle. The person who drives the vehicle most often will be evaluated based on their age, previous insurance track record and the amount of time spent on the road to date. Drivers under the age of 30 are likely to pay higher premiums, as they are statistically more likely to be involved in an accident due to limited experience.
Security is another big factor when it comes to calculating your risk. Your insurer will want to know where your car is typically parked, and you're likely to have to shell out a bit more for street parking than a private garage, which is considered more secure. However, you are likely to be able to shave a little off that monthly premium if you have an approved tracker and alarm system in place, as these deterrents slightly offset the risk of theft.
Now that you know how your insurance premium is calculated, you can start shopping around for cheaper ways to keep your car covered in the event of an accident or theft. So where do you start? First of all, it's important to consider not only the price, but also the benefits that an insurance policy offers you. For instance, you'll want to take into account added-value extras like roadside assistance and free take-me-home rides, as well as the simplicity of the claims process. So before you sign on the dotted line, make sure to carefully read all the terms and conditions of the policy in question so as to ensure you're getting maximum bang for your buck.
Here are Miway's top tips for getting the best car insurance quote:
Get googling
The internet is the perfect place to start your search for a less costly car insurance quote. Online comparison websites are now widely available, and gather and compare insurance quotes on your behalf, allowing you to quickly and easily assess market rates and potentially beneficial deals. You might also want to have a look at consumer reviews, so you can get an idea of the pros and cons of each option. Once you've identified a few options, reach out to the insurers in question for a quote based on your unique circumstances, and calculate the short- and long-term benefits.
Keep an eye out for special offers
The short-term insurance market is becoming increasingly competitive, which is forcing premiums down and the frequency of promotions up. As such, it's important to look out for potentially beneficial deals that might apply to you.
Online car insurance at the click of a button
Looking to halve the hassle at a reduced price? This might sound too good to be true, but in fact many insurers offer special discounts for those requesting a quote or taking out an insurance policy online. So if you're strapped for time, make sure to look out for special online offers that allow you to bypass call centres and save money in the process.
Combine your policies
Putting all your eggs in one basket can be extremely beneficial when it comes to insurance. In fact, many insurers will offer you a discounted rate should you decide to insure more than one vehicle or to combine your home and car insurance policies. So if you have numerous policies in place with a variety of insurance providers, now might be a good time to downsize and house all your cover under one roof. When searching for cheap car insurance quotes, make sure to ask potential insurers how you can save by streamlining your cover.
Find a specialist provider
Given the myriad factors that go into calculating an insurance quote and the increasingly dynamic nature of the daily commute, a number of insurers now provide tailored car insurance quotes designed to address specific demands. So, for instance, should you be working primarily from home, you might be able to reduce your monthly premiums due to the reduced time spent on the road. Some insurers also offer special deals for those in niche professions, whilst others make provisions for female drivers and offer specialised motorcycle and bicycle insurance. As such, it's important to take into account your unique circumstances when searching for cheaper car insurance.
Up your excess
Your car insurance premiums are also inherently linked to the associated excess - essentially the amount you'll need to pay in should your car be damaged or stolen. If you're looking to cut down monthly costs, you might want to consider a higher voluntary excess. Many insurers will offer a discount should you opt to take this route, so don't be afraid to ask. Bear in mind though that while this option might save you plenty in the short term, you'll need to make provisions in the event of an unexpected loss, ensuring you have sufficient excess available to you should you need to claim.
Jack up your car
Security is one of the primary factors that goes into calculating your insurance premiums, so you'll be better placed to pay less over the long term if you opt to equip your car with additional safety features like tracking or anti-hijacking devices. By reducing your potential risk profile, you'll likely be able to negotiate lower monthly premiums, and at the same time minimise the need to file a claim.
While saving money might be your top priority, it's important not to opt for a bare-bones insurance policy that could end up costing you dearly in the long-run. Your objective should ideally be to find a comprehensive car insurance policy in line with your lifestyle that caters to your specific needs.
Miway's Comprehensive Cover policy for example, offers ample protection in the event of theft, damages caused by accidents, fires or natural disasters, and included liability cover in the event that you inflict damage on another person's property. Additionally, this policy provides free roadside assistance, a hassle-free online claims process and the ability to manage the policy yourself. Also included in the policy are six WeDrive trips, which can be booked in advance should you be looking to take the night off from driving.
If you're looking for a no-frills, no-fuss offering that covers your needs, you might want to consider MiWheels Lite, a comprehensive policy without the fluff that offers you all the key features you need for greater peace of mind. Rather than sacrificing or limiting the amount the vehicle is covered for, Miway strips out the 24-hour roadside and home assistance, trading them for important benefits such as recovery and towing. This is a great alternative for cost-conscious customers, as it goes beyond the traditional 'third-party fire and theft-only' product offering, whilst going easy on the pocket.
By understanding the factors that go into calculating your premiums and understanding the various types of insurance available to you, you'll be better placed to make smart decisions and save significantly in the process. Knowledge is power, so don't be afraid to ask questions, offer alternatives and shop around for the best car insurance quotes.
If you don't currently have any form of Car Insurance in place or are perhaps considering changing your cover due to evolving needs, now is the time to act. Click here for a full list of our Car Insurance products or get in touch with us today on 0860 646464 for a free personalised quote.
Miway is a licensed non-life insurer and Financial Services Provider (FSP 33970).
