As with any product, car insurance becomes cheap when a distinct comparative saving is made. Everything is relative of course. You can't compare the price of car insurance to your grocery shopping, there is a general cost associated with each police. This will be determined by your driving history, car type and any number of other factors.
Car insurance providers generally use their own system for determining the cost of a policy - albeit this is governed by industry watchdogs to ensure competitiveness. Therefore, whilst a company may prove more expensive for one driver, it can be significantly cheaper for another. This is why it is important to shop around.
The cost of cover can vary wildly though. For instance, when you're young and seemingly inexperienced you will have to pay substantially more for your policy. This is a near universal feature across car insurance provider and is simply down to the implied risk that younger drivers pose.
Because policies are based on individual risk, they often have to use very general rules such as this. Age and even gender can play a huge part in what you end up paying. Older drivers are seen as experienced and are in an age bracket (usually 25 - 60) that makes fewer claims. Female drivers also tend to claim less and when they do, the accidents are usually minor, which means that the insurers have to pay out less. This reduces the risk rating and associated cost.
Unfortunately there's not a lot you can do about your age or gender, which is why it is important that you take the time to research car insurance and get the best deal possible. Costs can quickly be cut when you use a price comparison service or carry out your own investigations online. There are discounts to be had and you can easily compare the cost of equivalent cover without a great deal of hassle.
There are other ways that you can cut down your car insurance premiums, some of which are simple and others a little more drastic. Let's take a couple of the more extreme examples first:
Buy a new car - If you've got a gas guzzling, turbo charged car with a huge engine, you'll be paying far more than somebody that owns a small city vehicle. Modifications and engine size can have a huge impact on the amount you pay, therefore getting a more economical car will help make your policy much cheaper.
Lower your coverage level - This is only an extreme measure if you have a car that has significant value. Buying comprehensive car insurance can be an expensive investment, particularly if you have made a claim in the last couple of years, haven't built a no claims bonus or are a young driver. So lowering your coverage to third party would see your premium cost lower and mean that you can enjoy far cheaper car insurance - albeit sacrificing most of your claim rights.
There are also a number of things that you can do during the application process that will help drive down costs (excusing the pun). Being accurate with your mileage and usage will ensure that you're not paying more for less. When you come to finally buy your insurance, don't be afraid to ask if there are any areas where savings can be made. A few extra questions might see you knock another chunk off your policy price.
So whilst car insurance may never be cheap per se, there are certainly ways of keeping the price to an absolute minimum. As long as you use common sense and are willing to invest a little time, there's nearly always a saving to be made.
Car insurance providers generally use their own system for determining the cost of a policy - albeit this is governed by industry watchdogs to ensure competitiveness. Therefore, whilst a company may prove more expensive for one driver, it can be significantly cheaper for another. This is why it is important to shop around.
The cost of cover can vary wildly though. For instance, when you're young and seemingly inexperienced you will have to pay substantially more for your policy. This is a near universal feature across car insurance provider and is simply down to the implied risk that younger drivers pose.
Because policies are based on individual risk, they often have to use very general rules such as this. Age and even gender can play a huge part in what you end up paying. Older drivers are seen as experienced and are in an age bracket (usually 25 - 60) that makes fewer claims. Female drivers also tend to claim less and when they do, the accidents are usually minor, which means that the insurers have to pay out less. This reduces the risk rating and associated cost.
Unfortunately there's not a lot you can do about your age or gender, which is why it is important that you take the time to research car insurance and get the best deal possible. Costs can quickly be cut when you use a price comparison service or carry out your own investigations online. There are discounts to be had and you can easily compare the cost of equivalent cover without a great deal of hassle.
There are other ways that you can cut down your car insurance premiums, some of which are simple and others a little more drastic. Let's take a couple of the more extreme examples first:
Buy a new car - If you've got a gas guzzling, turbo charged car with a huge engine, you'll be paying far more than somebody that owns a small city vehicle. Modifications and engine size can have a huge impact on the amount you pay, therefore getting a more economical car will help make your policy much cheaper.
Lower your coverage level - This is only an extreme measure if you have a car that has significant value. Buying comprehensive car insurance can be an expensive investment, particularly if you have made a claim in the last couple of years, haven't built a no claims bonus or are a young driver. So lowering your coverage to third party would see your premium cost lower and mean that you can enjoy far cheaper car insurance - albeit sacrificing most of your claim rights.
There are also a number of things that you can do during the application process that will help drive down costs (excusing the pun). Being accurate with your mileage and usage will ensure that you're not paying more for less. When you come to finally buy your insurance, don't be afraid to ask if there are any areas where savings can be made. A few extra questions might see you knock another chunk off your policy price.
So whilst car insurance may never be cheap per se, there are certainly ways of keeping the price to an absolute minimum. As long as you use common sense and are willing to invest a little time, there's nearly always a saving to be made.
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