Car insurance cuts the cost of motoring

Wednesday, 02 May 2007 12:00

As the cost of owning and running a car rises, American Express gives its top tips on securing cheap car insurance.

American Express' latest figures show moves to increase tax on petrol and diesel have led to 20 per cent of motorists altering their driving habits; 15 per cent driving less; ten per cent changing to a more economical car; and one per cent using public transport more often.

But while they take action to cut costs, some 43 per cent of motorists added they have never shopped around for car insurance.

"The cost of motoring seems to rise year on year and whilst there is little motorists can do to cut the cost of fuel or road tax, insurance is one area where real savings can be made," said Joanne Field of American Express Motor Insurance.

American Express Motor Insurance top tips for cheap car insurance:

1. Shop around
No matter what you drive or where you live, the best way to save money on motor insurance is to shop around. A panel of insurers will always check the market to offer a competitive deal. Most insurers will offer an additional discount for purchasing online. Click here to compare car insurance
2. Choose the right cover
Do not be swayed into buying a higher level of cover than you need. Depending on the value of your car, you will need either fully comprehensive, third party fire and theft or just third party. Remember when comparing quotes to check whether the policies are offering cover which is like for like.
3. Increase your voluntary excess
Most policies come with a standard excess, but some insurers allow you to choose a higher, voluntary excess which, in turn, creates additional discount on your premium. For example, a 33-year-old female driver living in Croydon and driving an X-reg Toyota Avensis can save an additional eight per cent on the overall premium by increasing the excess from £50 to £100.
4. Protect your no-claims bonus
A hard-earned no-claims bonus can save pounds off your insurance and may well be worth protecting.
5. Compare like-for-like policies
Be sure you are comparing like for like, sometimes insurers exclude items such as a courtesy car to keep the premiums lower. Make sure you choose the right cover for you.
6. Do not attract thieves
Think carefully, before modifying or customising your car - features like alloy wheels and spoilers can be attractive to thieves and can increase your insurance premiums.
7. Keep your car safe
Many insurers offer discounts for secure parking, alarms and immobilisers fitted to cars. An approved category one immobiliser fitted by VSIB engineers can cut up to ten per cent off premiums.
8. Park off road
Extra discounts are offered to motorists who park either on a driveway or in a garage overnight.
9. Annual mileage
Drivers who have low annual mileage may be offered extra discounts.
10. Points mean pounds
Speeding points, motoring offences including using your mobile can all raise the cost of insurance. Motorists who drive wisely will have cheaper car insurance.

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