Car Insurance - Reduce The Risk, Reduce The Cost

By Author: Deshawn Chillo
Total Articles: 8
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Car insurance premiums vary widely in what has become a seriously competitive market. Here are some tips on the measures that you can take to reduce your car insurance premium.

Car insurance policies, like all insurance policies, are calculated according to the potential risk posed to the property insured ? in this case your car. There are several measures that you can take to reduce the risk to your car, and in the process reduce your car insurance premium.

Firstly, steer clear of points on your licence. Speeding penalties, for example, will result in a hike in your insurance premium ? usually around 5% for the first offence, and a hefty increase for two driving offences at an average of around 20% when combined. One of the worst (and most easily avoided) is to be caught using your mobile phone when driving, as this offence will pretty much double the cost of your existing insurance premium.

When looking at insuring a driver under the age of 25 ? viewed as high risk by car insurance companies ? this risk can sometimes be alleviated by adding an older driver with a good record to the insurance. Many ...
... companies view this as reducing the average risk to the car, and so can lead to a reduction in the premium ? but don''t be attempted to ''front'' for a younger driver (claim that you are the main driver) as this is an offence, and will also invalidate the policy in the event of an incident.

Younger drivers should consider starting out with a modestly powered car. Powerful cars are considered to be at additional risk of collisions, and will hike up the premium considerably ? it is worth getting a quote from one of the major car insurance companies like The Co-operative Car Insurance for your intended model before purchasing to get a rough idea of the likely premium for your new car.

It is often well worth fitting additional security devices. Fit a car alarm if you don''t already have one, and consider an engine immobilizer as an addition to your car, as these reduce the risk of theft and can therefore substantially lower your premium.

Modifications to the car that are not related to increasing security, such as ''chipping'' the engine management system for increased performance, are a definite no no if you want to keep the cost of car insurance down; these modifications will simultaneously increase the cost of your car insurance premium.

Have a look online at the major car insurance providers like The Co-operative Car Insurance to get an idea of what is on offer. Price comparison sites can give you a good feel for the market, but remember that none of these sites cover all car insurance providers. Deshawn Chillo is a keen writer about car insurance and home insurance products.