posted 6 years ago

Minimising Motor Insurance Premiums

Minimising motor insurance premiums is important as they can be higher than an orbiting satellite with a malfunctioning guidance system

Minimising motor insurance premiums is important as they can be higher than an orbiting satellite with a malfunctioning guidance system. After all, paying an extra say, £100 annually can amount to a considerable sum over the years. So, what can motorists do to reduce their expenditure?

The first consideration is inevitably the choice of vehicle. Every model has an insurance group rating between 1-20, so pick something towards the lower end of the scale. In simple terms, low powered models that are cheap to fix have lower premiums than sports cars with monstrous engines. Vehicles classified as insurance group 1-5 include several versions of the current Ford Fiesta and Renault Clio.

Once you have chosen a vehicle the insurance premium can be reduced by earning a no claims discount, parking in a garage overnight, improving vehicle security, and limiting the annual mileage. It may also be worth adding a 'named driver' and increasing the voluntary excess. It is easy to asses how these factors influence premiums by searching for quotes on price comparison websites.

The final cost cutting measure is never to accept your existing company's renewal quote without first shopping around. This is because renewal prices are often higher than new policy quotes, even with the same provider. Insurance companies get away with this as consumers who simply accept renewal quotes avoid the hassle of starting from scratch. The providers are literally charging for convenience. Clearly this can be expensive, so it is always worth making the effort and doing some proper research.