posted 5 years ago

Minimising Motor Insurance Premiums

Motor insurance premiums have rocketed recently, so much so that my friend is now considering selling his kidney to raise the required funds.

Motor insurance premiums have rocketed recently, so much so that my friend is now considering selling his kidney to raise the required funds. However, his beloved organ could remain firmly glued in place if he minimises his premium by following a few simple steps. So, let's leave the hacksaw rusting in the toolbox and consider a less radical approach.

One of the most significant factors affecting a premium is, inevitably, the vehicle. Each variant has an insurance group rating from 1-50, so choose something towards the lower end of the scale. In simple terms, low powered models that are cheap to fix have lower premiums than prestigious cars with headlights more valuable than an organ pinching hospital theatre. Cars parked in groups 1-10 include the Audi A1 1.2 TFSI SE and the Ford Fiesta 1.25 Studio.

The next step towards finding the lowest premium is to source a variety of quotes, preferable from easy to follow price comparison websites. The premium can be reduced further by earning a no claims discount, parking overnight in a garage, improving the vehicle's security, and limiting the permitted annual mileage. It can also be beneficial to add 'named drivers' and increase the 'voluntary excess'. Each of these factors can have a considerable impact.

The final cost cutting measure is never to accept your existing company's renewal quote without first shopping around. That is because renewal prices are frequently higher than new policy quotes, even from the same provider. Insurance companies get away with this as motorists who automatically renew avoid the hassle of sourcing quotes. The providers are literally charging for convenience, but I would rather do a little research and keep my kidneys.