Insurance Tips & guides

Insurance Tips & guides. One in three consumers is paying over the odds for car insurance, according to the RAC. Nearly half of Brits do not bother to seek a number of quotes and one in four renew their car cover instantly, without using the opportunity to save hundreds of pounds.

So, given that premiums are rising steadily, it it is well worthwhile following our 10 steps to lower premiums.

1. Shop around for the best deals. Savings of hundreds of pounds can be found if you shop around when you renew your cover, but the experts say you need to obtain at least seven quotes to get the best deal, although most people get only three.

Be careful though. When shopping around for car insurance, it's important to make sure that you are comparing like-for-like cover. Some policies may seem cheaper, but you may find you don't have the same level of cover when you have to make a claim.

Find out what you can save with This is Money's car insurance comparison service in our Money Shop. And if you're a woman or a mature driver, it might be worth checking out one of the tailored policies now on offer to certain groups.

2. Ensure that only regular drivers are named on the policy. You can always add someone for a few days when they really need to drive the car.

3. Protect your no-claims bonus. This may increase the premium by a few pounds, but this fades into insignificance against the potential loss of a 60% discount on a premium of several hundred pounds. But the definition of a protected no-claims bonus can vary widely between insurers. Though accidents caused by another driver will normally have no impact on such a bonus, those caused by the insured could.

4. Increase your voluntary excess. Agreeing to pay more towards the cost of any accident repairs will bring down premiums. If you are not at fault in an accident, the excess can be recovered.

5. Fitting an approved alarm, immobiliser or tracking device can attract a discount of around 5%.

6. Agree to a mileage restriction. The fewer miles the car covers, the greater the saving. For example, a reduction in annual mileage of 5,000 miles could save a typical 35-year-old female driver about £50 a year in premiums. A cut of 10,000 miles a year could save more than £100.

But you must be honest about your annual mileage, as innacuracy will jeopardise any claim. Check your use cover - if you don't use your car to drive to work or for business - both things that increase your premium - you may be able to get a cheaper rate.

7. Don't add a young, inexperienced driver to your policy as it's a false economy. The premium will still be calculated on the youngest driver and he or she will not have a no-claims bonus.

8. If you decide to change your car, check with your insurer if the model will have a significant effect on the premium. Sporty cars can attract a high premium and often a slightly different model or smaller engine can make a big difference in your favour. It will also probably save you on petrol too!

9. If your garage is full of junk, clear it out and use it for your car. Aside from the benefit of not having to scrape the ice off in winter, there is a higher risk of theft by keeping the car on the road, so keeping it in the garage will be reflected in your premium.

10. Drive more carefully. Join the Pass Plus scheme or take an advanced drivers' course. Both offer discounts - up to 35% - from some of the major insurers. ( thisismoney.co.uk )

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Guide To Car Insurance

Guide To Car Insurance. Your car insurance rates are based on a few factors you can't readily change -- your sex, age, marital status and where you live -- and many that you can -- your credit scores, what you drive, how well you drive and how much coverage you buy.

Here's how to get the best deal.

First, let's review the basics. Details vary from state to state.

• Liability insurance pays for injuries and property damage caused by a crash if an insurance adjuster determines you were at fault. It does not cover your injuries or those of other people on your policy, or damage to your vehicle. State minimum requirements provide inadequate protection. Buy no less than $100,000 per person, $300,000 per accident and $50,000 for property damage, or no less than $300,000 if your policy has a single limit. You are personally liable for claims that exceed your coverage, so buy even more if you can, and consider an umbrella policy.
• Uninsured/underinsured motorist protection covers injuries to the occupants of your car -- and property damage in some states -- if the other driver has no insurance or too little.
• Collision insurance pays for damage to your vehicle in an accident. If your car is totaled, you'll get what the insurer considers the pre-crash market value of your car, minus your deductible. To get a general idea of what that may be, check the Kelley Blue Book private-party price or visit the Web site of the National Automobile Dealers Association. You can pay extra for replacement-cost coverage for newer cars.
• Comprehensive insurance covers theft of your vehicle and noncollision damage to your car, as well as animal collisions. You may be eligible for lower rates if your vehicle has anti-theft and tracking devices.
• * Medical or personal-injury protection provides coverage for you and your passengers, regardless of fault. You may not need this insurance if you have good health insurance.
• Twelve states have no-fault insurance, which generally covers the insured person's injuries and property damage no matter who is at fault.
• Consider gap insurance if you owe more on your car than it's worth.

Reduce your rates

The company you select and the coverage you buy can greatly reduce your rates.

• Shop around. Check rates online at InsWeb.com, call companies, and consult an agent through the Independent Insurance Agents & Brokers of America. Rates vary greatly depending on a company's operating expenses, history of claims and formulas for setting premiums. Check a company's financial status and consumer record. The last thing you need is to go cheap and then find it's all but impossible to file a claim.
• Increase your deductibles on comprehensive and collision coverage to an amount you can cover out of pocket.
• Consider dropping both if you own your vehicle outright and the combined annual cost for that coverage is more than 10% of what you would get if you car were totaled.
• Ask your insurer about all available special discounts.
• If you're switching insurance companies, do it in writing. Your credit scores will suffer if you're canceled for nonpayment.

Control yourself

Your behavior on and off the road has a bearing on your rates.

• Pay all bills on time. Your premiums are based in part on your credit scores or an insurance risk score based on your credit reports. TransUnion's TrueCredit will provide your auto insurance risk score for $9.95.
• Drive defensively, and avoid distractions such as text messaging or talking on a cell phone. One speeding ticket may not raise your rates, but an accident you caused probably would -- generally by 40% of the company's base rate.
• Don't drink and drive.
• Don't lend out your car. If your friend wrecks it, your rates will go up. If your uninsured friend wrecks your car, you'll be liable for claims exceeding your policy.

The type of vehicle you drive affects your rates.

• Check the cost of insuring that sports car before you buy it. You'll pay higher premiums for a vehicle with higher collision-damage costs or that's attractive to thieves. Use MSN Money's comparison tool. And no, it doesn't cost more to insure a red car.
• High-tech items are more expensive to replace after a crash.

The deal on discounts

Factors such as age, how much you drive, where you live and, sometimes, what you do for a living affect insurance premiums. You can take some steps to get a better rate.

• If you get married, you'll get a discount and benefit from combining policies.
• People 55 and older get a discount for taking a driving class.
• Adding your newly licensed teen to your policy will increase your premiums 50% to 200%. One way to reduce costs: Buy a beater and list your child as the driver. Teen drivers can get discounts for drivers ed courses or good grades.
• You may get a discount if your child attends college away from home.

If you wreck your car

If you've been in a collision, tell your insurance company for your own protection, even if injuries are not readily apparent. Informing the company doesn't mean you're filing a claim.

• If you disagree with the value assigned to your totaled vehicle, provide quotes from local dealers and proof that your vehicle was well-maintained. Still unsatisfied? Your options are mediation, arbitration and, finally, a lawsuit.
• Twenty-eight states require insurance companies to pay the sales tax on a replacement vehicle, based on the settlement value of your totaled car. Request it, as well as registration and title fees, wherever you live.
• In 14 states you can get payment for the "diminished value" of your damaged car.
• If the driver at fault in a crash is uninsured, consider "stacking" or collecting on all of your policies that have uninsured/underinsured motorist coverage to fully cover the damage, unless state law prohibits it.
• Body shops may be tempted to cut corners to meet insurance companies' pricing requirements. Check Assured Performance Collision Care for qualified repair shops.
• If you cause an accident, does your policy require you to pay the difference between generic and original-equipment manufacturer parts? If someone else caused the accident, request original-equipment parts for your repairs.[ .msn.com ]

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