The Rising Cost of Motor Insurance
We don’t generally tend to think about our insurance coverage often until something bad happens, or we suddenly notice the cost has gone up. Insurance companies try to keep their customers happy, like any good business. Unfortunately however, there are times where factors outside their control may impact the pricing of insurance.
Thankfully, there are options that can lower the cost of your car insurance. Let’s start by looking at why you may be paying more.
What drives motor insurance premiums?
Modern vehicles are equipped with more technology than ever before such as cameras and sensors built into our bumpers, in which even minor accidents and collisions can result in significant repair costs. Distracted driving is also a concern, primarily for the safety and well being of our communities, but also because it is responsible for an increase in insurance claims.
In simple terms, the more insurance companies pay out for cost of repairs, the more your premiums will go up.
So what can you do to lower the cost of Insurance?
1. CHECK YOUR MILEAGE
If you are driving less than before, you may be eligible for a reduced premium.
2. KEEP A GOOD DRIVING RECORD
If you’ve never had an accident you could voluntarily increase your excess. This is something to consider if you have a strong driving record and are deemed less likely to experience an at-fault accident.
3. PROTECT YOUR VEHICLE
Most Insurance Companies offer discounts if you park your vehicle in a locked garage overnight of possible. It is also good practice to keep your doors locked and install an alarm system if your vehicle does not have an immobiliser.
4. USE A MULTI POLICY DISCOUNT
Speak to your broker about placing all of, or most of, your insurance policies with the same Insurance Company as most offer a discount for having multiple policies with them.
5. CHANGE COVERAGE OPTIONS
Talk to your broker about reducing your cover from Full Comprehensive to either Third Party Only, or Third Party Fire and Theft if you have a low value vehicle. The cost of Full Comprehensive on low value vehicle may outweigh the benefit of having this policy in place.
6. CHOOSE THE RIGHT CAR
Certain new make/ model high value vehicles, as well as some classic cars, may be very expensive but can be covered by specialist insurers wordings because of how they’re used. Vehicle selection also matters were the vehicle is modified or considered a high theft risk.
7. EXCLUDE OTHER DRIVERS
Most policies allow you to exclude other drivers using options like removing cover for drivers under 25 years of age or covering named drivers only. This can often lead to a discount on your policy.