Friday, 8 July 2011

How To Save On Car Insurance

Taking an accredited driving course will not only make
you a better driver, it will result in an immediate reduction
in your insurance premiums. 
Car insurance can be a costly expense, especially if you are younger and have little driving experience. There are, however, a number of ways to dramatically reduce your premiums by getting proper driver's training and practicing safe driving habits.

1. Take an accredited driving course
One of the most important things your insurance company takes into consideration when evaluating your insurance premiums is your driving experience. As a young driver, there is not much you can do about having little driving experience; you simply have to drive safely for a number of years before your premiums will come down.

A driving course, however, will show an insurance provider that you are serious about driving and that you have skills that will make you a safer driver on the road. Most insurance companies will give you an immediate reduction on your premiums if you have a driving course under your belt. It also makes sense to take one for more important reasons: if you are going to be sharing the road with other people, you should be the best driver you can be. Taking a course will give you the skills necessary to be a safe driver and will minimize the chances that you'll be in a collision.

2. Keep in mind that driving safely will save you money
When determining premiums, insurance companies look primarily at your driving history. If they see accidents and traffic violations, you will be charged a much higher premium. Practicing safe driving habits will prevent you from being involved in collisions and ensure that you do not accumulate speeding tickets. Doing so will not only make you safer on the road, but it will save you money in the long run. After a serious accident, your premiums can remain at heightened levels for up to six years. After a speeding ticket, you may see your premiums increase for up to three years. If the well-being of those around you on the road is not enough of an incentive to drive safely, consider that you could save thousands of dollars on your premiums by doing so.

3. Choose the right vehicle 
The vehicle you drive will have a profound effect on your insurance premiums. If you drive a much more expensive car, you'll likely be paying more for insurance. If you were driving and (God forbid) crashed your Lamborghini, it will cost your insurance provider a lot more to replace it. On the other hand, if you crashed a rusty old VW Rabbit, which costs more to fill up than it would sell for, the insurance company the insurance company would not have to spend very much at all. Therefore, since the cost of replacement and repair is significantly higher for more expensive vehicles, insurance providers must charge more for premiums.

Thus, when choosing a car you should research the premiums you could expect to pay to insure it. Even some moderately priced cars could cost you a lot more to insure than others. Read our earlier post on Insurance Premiums and Buying a Car to see what cars will cost you the most to insure.