In this section you can find tips and information about all kinds of different aspects of insurance and personal finance. More content will be added to this section over time, so check back often!
Tips for Renewing your Car Insurance
It is a legal requirement to have a minimum of third party public liability insurance if you wish to drive on the roads in the UK. If you hire a car then this can be provided with the vehicle but if you own or plan to use a friends of parents car then you will need to have adequate insurance cover in place.
Insurance is a product that provides financial compensation in the event of an accident. As such it is possible to get different levels of cover depending upon your needs, budget, number and type of drivers. As the insurance industry is very competitive, it is essential to shop around to make sure that you are getting the best deal every time you need to renew. In the UK, insurance cover tends to run for a twelve month period although shorter terms can be arranged if necessary.
With many years of accident and claims records to analyse, the insurance industry know who is statistically likely to have the highest accident rate. Young male drivers attract the highest risk and therefore the highest premium. Young female drivers have a better claims record but best of all tend to be the over 50`s who have many years driving experience.
The good news is that the level of competition means that someone somewhere will give you a quote. Assuming you are looking for standard car insurance (as opposed to taxi or vintage car cover) then there are a number of websites that take the grunt out of getting a range of competitive quotes. These comparison websites have a pretty good coverage of most smaller and independent insurers but it is worth noting that one or two of the majors (such as Aviva and Direct Line) do not subscribe to comparison websites.
By using at least two comparison websites (such as comparethemarket.com and confused.com) you can obtain quotes from around 85% of the market. Adding the major direct players mean that you can get a near full coverage of the market.
Adding older drivers to young applicants insurance can bring down the premium. If the youngster owns a car then it is important that the insurance is in their name with any senior adults added as named drivers and not the other way round. This could invalidate the insurance if discovered.
Similarly, increasing the excess charge will reduce premiums as will garaging the vehicle overnight. Smaller cars cost less to insure than executive saloons or sports cars. So when looking at any used cars for sale make sure to check out the level of insurance before you commit to buy. Use comparison websites and get quotes from the direct providers. That way, you will be able to get the best deal for your motoring needs.
Motoring Advice for Young Drivers
The statistics for young drivers are depressing, Compared to more experienced drivers, young drivers:
- - Are almost 10 times more likely to be killed or seriously injured than more experienced drivers
- - Are almost 5 times more likely to be involved in a road traffic accident involving a casualty than more experienced drivers
- - Are more than twice as likely to make an insurance claim
- - Cause more expensive claims (more than three times greater, on average
There are however ways of ensuring you don't become one of these statistics, and perhaps save yourself some money as well.
First and foremost, don't break the law. Speeding especially is common among young drivers, and a primary cause of road accidents. When you stick to the legal speed limit you won't get any points on your licence either, which helps with your insurance premium. The more points on your licence, the higher your car insurance costs.
Also, don't ever drink and drive. While you may think one drink will keep you within the legal limit, the fact is that any alcohol is too much when driving. Even a small amount of alcohol will negatively influence your spatial awareness and reaction times. Drunk driving is one of the leading causes of fatal road accidents in the UK.
Taking an advanced driving qualification such as Pass Plus will not only make you a better driver, it will also help lower your insurance premiums. Drivers who have taken these qualifications are generally less likely to be involved in road traffic accidents.
If you want to further reduce your car insurance costs, driving a car with a smaller engine also helps. A less powerful car costs less to insure as it is less likely to be involved in a serious traffic accident.
Finally, shop around for your car insurance. Price comparison sites such as Low Price Car Insurance can help you find a better deal on your car insurance, which will leave you money for other things.
Staying safe on the roads is not something that comes effortlessly. With careful driving and the proper attitude to road safety, you can prevent yourself from becoming part of those road accident statistics.