Shop around for car insurance. You can use comparison sites to compare deals. However, make sure you check the details of each policy. Prices may not always be accurate and policies have different levels of cover.
Some offers are not included in search engines so you also may find some great deals and freebies by searching online and checking out individual company’s websites.
Phone operatives may have the ability to negotiate the price of their quote, so if you haggle using details of other deals you have been offered, they may drop their prices to avoid losing business.
There are a few different types of car insurance. Make sure you understand what yours covers you for:
Third party Covers you for passengers in your own car and damage to other people’s vehicles only.
Third party fire and theft Same as above but covers costs if the car is stolen or set on fire.
Fully comprehensive Includes cover for damage to your vehicle if you cause an accident and also covers accidental damage and vandalism. If you have one of these policies you can also drive hire cars and other people’s cars without extra insurance.
Which should you get? The less cover your policy gives you the less it costs. However, the more money you stand to lose if you have an accident. Generally, if your car is worth less than £1000 you may be better choosing third party policies as a full comprehensive policy may be worth more than the cost of your car. If your car is worth more than £1000 you may be better off with fully comprehensive insurance.
Excess When buying your insurance you must choose how much you would be willing to pay yourself in the event of a claim. This is called the excess. The higher the excess the cheaper the policy.
Making claims – and No Claims Bonus If you damaged your car you may decide not to claim for it on the insurance. This is because claiming increases future insurance and can invalidate your no-claims bonus (see below). It may not be worth claiming for anything under £500.
TIPS FOR REDUCING THE PRICE
Paying for insurance
· Pay in full if you can. The insurance company will add extra money for paying monthly.
· Buy over the internet and you could save money.
Renewing insurance
· If you are renewing insurance try your current company as a new customer and it could be cheaper.
· Some insurers promise cheaper insurance than your renewal price.
Insurance for Younger drivers
· If you are a young driver you will find that premiums will be relatively high. Look for brokers who specialise in young persons or student car insurance.
· Swinton's Young Driver cover is especially for 18-25 year olds, as is Drive Time, which offers fully comprehensive insurance if you only drive between 6am and 11pm. .
· You may find other insurers who specalise in insurance for another particular group that you fall into, for example if you are a female driver or drive a specific type of car.
Other tips for younger drivers:
· Sometimes adding named drivers can actually make your policy cheaper if they have been driving a long time and have a clean record.
· Consider doing a Pass plus test if you have passed within the last 12 months. Some insurers will give significant discounts to those who have them. Although they cost about £150 some local councils offer discounts to younger drivers.
· Ask about discounts for Advanced Driving qualifications. Visit the Institute of Advanced Motorists www.iam.org.uk for more information.
Look after your car
· Park in a garage or driveway to decrease the risk of theft and vandalism.
· Security devices such as alarms will reduce the policy as long as they are professionally fitted and approved by the insurer.
· Insurance companies tend to charge more if cars have modifications.
Think about how you drive
· Have a clean drivers licence.
· You will receive a discount if you drive for the period of insurance without making a claim. Drive carefully and make sure you do not lose your no-claims bonus.
· If your annual mileage is low you might be entitled to a mileage discount. Try other means of transport such as trains for long journey’s
Be honest
· Do not lie on your policy. This will invalidate your insurance and mean that you will not be able to get any money. If you have your policy canceled due to a fraudulent claim you will find it hard to get insurance in future. You could face criminal prosecution for driving without insurance.
· Make sure you inform your insurance company of any change, for example, modifications made to the vehicle.
Buying a car
· The type of car you have can affect insurance. Get insurance quotes online for different cars to compare.
· Driving an imported car with parts that are expensive and hard to replace will increase your premiums.
· Small cars cost less to insure so bear this in mind when buying a car.
References:
Endsleigh www.endsleigh.co.uk/car/youngdriver-toptips.html
This is Money www.thisismoney.co.uk/help-and-advice/advice-banks/article.html?in_article_id=450323&in_page_id | 
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