Cheaper Car Insurance

Motoring and Travel

Updated on 16 December 2008 | 0 Comments

Car insurance costs are on the increase but here are some tips to help you keep them down.

Did you know that there were some 1.7 million vehicle-related thefts during the 2005/6 financial year? And it gets worse over the Christmas period not least because people leave tempting-looking festive shopping bags lying on their back seat!

Amazingly, car-related crime has actually fallen by about half in the last ten years, in part because manufacturers have put a bit more thought into security measures for newer cars. Immobilisers, car alarms and locking wheel nuts have all gone a long way towards deterring thieves from stealing your car, satellite navigation systems or alloy wheels and if you have these security devices fitted, it'll help to reduce your car insurance premiums.

Driving for five years or more without making a claim on your car insurance will typically give you a discount of up to 65% on your premiums - a saving well worth protecting as I thankfully discovered in the summer when I stupidly scraped my car!

Cars with smaller engines attract lower premiums too but you should avoid making any subsequent modifications that will put your car outside the standard set by the manufacturer. James Bond may be driving a Ford Mondeo in the latest 007 film but it's still a souped-up version.

You can also keep insurance costs down by paying the premium in full up front. Insurers can charge as much as 30% extra if you pay your premiums on a monthly basis.

If you don't do much driving, make sure you let the insurer know as most will give you a discount for low mileage. And offering to pay a higher excess in the event of a claim will also keep the premiums down.

Most importantly, shop around. My dad has stuck with the same insurer for years because of, to my mind, a misplaced loyalty and nothing I say will make him check out the possibility of a cheaper insurer. Prices can vary hugely among insurers so it's always worth seeing if you can get a better deal elsewhere when your renewal notice drops on the doormat.

Compare car insurance costs here at the Fool.

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