Truth And Lies In Car Insurance

The number one thing to remember, and to always keep foremost in your thoughts when purchasing any kind of insurance - particularly for your car - is that insurance companies are out to make money.

It might seem simple common sense to state that so bluntly, but when you are being dazzled by specious guarantees and spurious quotes, it is easy to forget. So what should you look out for?

Insurance companies - they quote themselves happy!

There are some factors that are unavoidable, so it’s best not to worry about them and move on. For instance, if you are male and under the age of 25, your insurance policy will inevitably cost more than nearly anyone else on the road. By the same token, if you live in an area with high car crime, your premium will go up, often substantially. As much as we would like to be able to move house and travel through time, these are not pragmatic solutions.

However, there are steps you can take to significantly reduce your premium.

If at all possible, and especially if you are a young driver, start with the car you buy. All cars in the UK are classified within an insurance group, from 1, the cheapest, to 20, outrageously expensive. The main defining factors in which group your car will be placed in are: the initial cost of the car if bought new; the size of the engine and its performance figures; the security measures built in to the car; how costly it would be to repair and replace parts if the car was involved in an accident. As a rule of thumb, hatchbacks with small engines such as the Fiat Punto, the Renault Clio and the Ford Fiesta are all cheap to insure.

Even larger, family size cars can be cheap to insure if chosen well. The Ford Focus, for instance, is only rated as a group 4 car at the time of writing. Try avoiding cars like the group 20 Porsche 911. You might be sacrificing a few seconds on your 0-62mph time, but you will be saving a hefty wad of cash to spend when you get to your destination. Also, get a Thatcham-approved alarm system for your car. Thatcham are beloved by insurance companies and their approval can go a long way to helping reduce your premium for a small initial outlay. Whatever you do, resist the temptation to modify your little hatchback. This can send your policy through the roof, and neon blue lights are ugly and illegal.