Car Insurance: the Can’s and Cant’s/The Do’s and Don’ts

Guest post by Ant Bradshaw works for AskAPrice.com who provide new car prices.

Recently I’ve been doing a lot of writing based around the financial side of motoring, and I’ve had a lot of questions regarding car insurance “Can I do this, can I do that, which is better, which will save me more money”

So, here goes “Car Insurance: the Can’s and Cant’s the Do’s and Don’ts

First of all the best way to compare car insurance prices is online! Using the Internet you can find the best prices in minutes. A simple search on Google “Compare Car Insurance” is all it takes for you to have a handful of decent websites to pick from.

Many people try to be clever with these websites, getting a quote online and then contacting the cheapest company directly over the phone to cut out the comparer’s fee. But it’s really not beneficial, online these companies are competing for your business and that’s where the bargains are to be had.

Does where I live affect the price of my insurance?

Yes your address is taken into consideration when your quotes are calculated; this is all based on car theft in the area and such. A lot of people have access to garages and do not use them. Well do you know that parking your car in a garage overnight will significantly lower the cost of your car insurance? If you don’t have access to a garage then what about a driveway it is also likely that parking on a driveway as opposed to the side of the road will lower the cost of your car insurance.

What is voluntary excess?

Voluntary excess is the amount of money you are willing to pay towards any accidents/claims. You insurer will not pay a penny until you have handed over that money.

You can get some real savings here though. The higher you set your voluntary excess the less your premium will be.

But can you afford to pay a large amount of money should you have to make a claim on your insurance?

I’ve always advised people to do a bit of saving here. Set your excess as high as you can until it stops saving you money and what you save off the cost of your car insurance, is then your excess fund. Put this in the bank or a savings account, if after 12 months when you’re policy ends you haven’t claimed you’ve saved yourself A LOT of money! And it’s waiting for you at the bank, if you do have to claim, you’re only paying what you would have paid in the first place and… It’s waiting for you at the bank. Its win-win, but are you mentally strong enough to put that money aside and leave it there?

How does my Mileage affect the price?

The more miles you travel will increase the price of your insurance. Mileage puts wear and tear on a car and if you do a lot of miles these insurance companies are going to want to cover themselves in case they have to pay to repair your car. It’s less likely to affect the price as much when insuring a new car as there are no miles on the clock. But nevertheless make sure you’re not adding too many miles on when you’re getting a quote, only put the amount your doing.

What about Alarms?

Most new cars will come with factory fitted alarms and immobilizers but older cars won’t necessarily have had them fitted.

So it’s worth looking into, it isn’t to expensive and it will dramatically lower the price of your insurance not just this year, but every year, so how much will you save in all?

Factory fitted alarms and immobilizers are great, but in addition there are certain brands, which are highly trusted by insurance companies. It’s worth looking them up and looking into having these items added to your new car. Not only will it save you money in the long run, but it gives you that added protection against thieves and vandals.

Should I do pass plus?

Yes! To those wondering what it is, pass plus is a 6-lesson course for new drivers to get comfortable with everyday driving. There is no test at the end of it, just 6 simple lessons on things like “motorway driving”.

Insurance companies recognize pass plus and will reward you with serious discounts for taking the course.

If you’re a new driver and you’re looking to get your new car on the road, prices are going to be sky-high, so I would say pass plus can definitely help you, but you can only take it within a year of passing your test!

So all information taken into account, I’m sure you can see for yourself there are many simple steps you can take to help your hunt for cheaper car insurance prices!