Avoid These Common Car Insurance Mistakes

 By Simon Christopher

1970 Pontiac LeMans

1970 Pontiac LeMans

Following news that further rises in car insurance premiums are likely over the next twelve months, many motorists are keen to hear about ways to cut their premiums. Although there are still some powerful methods to control the level of your renewal premium, there are just as many which could prove a waste of time at best and illegal at worst.

Insurance Fronting

Fronting is a simple money-saving tactic: it works because the higher risk driver, usually a young teenage male, avoids having to take out a policy in their name and instead becomes a named driver on a policy in the name of a lower risk driver (usually a parent). As far as the insurance company is concerned, the high-risk driver is likely to only use the car occasionally, so it offers a considerably lower premium, potentially saving a lot of money.

The only problem with the fronting tactic is that it's illegal. Giving any false information on an insurance application constitutes fraud, and this includes listing the primary owner and user of a vehicle as an "additional driver". Not only that, but the moment the insurer finds out, the policy is immediately void. That leaves the driver unprotected if he or she needs to make a claim, and may even leave them liable to prosecution for driving without insurance.

Renew With The Same Car Insurer

Some people simply allow their insurance policy to roll over without making any effort to shop around, and frankly there's not much can be done to help them: missing out on potential savings is simply the price of apathy. But some people stick with the same insurer thanks to a mistaken assumption: that transferring will mean losing their no-claims record.

In fact, insurers are required to transfer your no claims discount history, and the old insurer must provide a certificate to confirm this. In other words, if you have three years without a claim under one insurer, another insurer will quote you in the same way as if you had been their customer for three years.

Where the confusion lies is in no-claims protection, which involves paying an extra amount at the start of the year, after which the first crash (at least) will have either no effect or a reduced effect on your no-claims history. If you do make a claim that is covered by this protection, the claim may still be counted by another insurer as impacting your no-claims record.

Buy A Cheaper Car Or One With A Smaller Engine

It might seem to make sense to downsize your car in the hope of saving on premiums, but this isn't always effective. It's not the inherent size or power of your car that decides the premium, but simply the potential costs of repairing damage.

There are multiple factors at play, including some more obscure ones such as how widely available spare parts are for a particular model. Sure, a Maserati will usually cost more to insure than a Mini, but when it comes to two similar vehicles, it's not always easy to guess which will be cheaper. If you really want to find out which car would be cheaper, try running a price comparison quote online, but bear in mind you'll usually need a genuine license number of a car that fits the specific make and model you are considering.

To find out what money saving strategies do work and could cut your premiums every year, visit the car insurance articles page at UK Insurance Index for lots more tips and resources.

Article Source: http://EzineArticles.com/?expert=Simon_Christopher

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