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Friday, September 26, 2008

How to Reduce Your Car Insurance Quote

By Jay Tillotson

The price of a car insurance policy can vary greatly, and there are many things which can influence the price you pay. Fortunately, there are also many things which you can do to reduce this.

The most obvious one is not to accept the first offer. Don't assume that the first company you contact has given you the best possible price. Shop around, get several quotes -unlike credit card and loan applications they don't affect your credit rating - and make sure that you're giving the same information to each company to get a like-for-like quote. Comparison sites on the internet are especially handy for this.

It may be tempting to name each family member and friend as a named driver on your policy, just in case any of them need to drive your car, but this can send your premiums into orbit. Having your partner as a named driver can help - couples, especially married ones, can benefit from lower premiums - but naming your newly-passed teenager as a driver can have a detrimental effect. Encourage them to get their own policy and if necessary, name you as a driver on it to bring their costs down slightly.

Consider where you keep your car overnight. The safest option from an insurance point of view is in a locked garage, but if this is not possible, any off-road space will help to lower the premium. Parking your car in a driveway, private car park or even a friend's garage can get you a discount.

Fitting security measures on your car can help too. Ask a potential insurer which security devices are eligible for a discount, and look into having them fitted if you haven't already. When getting quotes, make sure you mention any security device you do have, even if you don't think it'll make a difference.

Be as accurate as you can be when giving a mileage estimation. If you think you only do 4000 miles a year, don't add on an extra couple of thousand miles 'just in case'. If, after taking out your policy, your mileage increases significantly (for example, getting a new job further away), you can always contact your insurer and amend the details. On a related note; different jobs can yield different premiums so be careful when selecting your job from the drop-down list on a site. Get the closest possible to your occupation, don't just hazard a guess. If in doubt, ring the company.

Often a substantial saving can be made simply by paying upfront for your policy. A monthly premium may seem cheaper but an admin fee is usually charged with this option. Paying a full year's premium upfront can sometimes save over £100 on APR alone.


When looking for cheap motor insurance, it's important to be honest above all else, even if you think it may mean a higher car insurance quote. Omitting details could mean that any subsequent car insurance claim is invalid.

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