Car Insurance Premiums - Avoid These Three Money Saving Mistakes

Following news that further rises in car insurance premiums are likely over the next twelve months, most motorists are looking for ideas to cut their insurance costs. Although there are still some very effective ways to control your insurance costs, some are less effective and even illegal.

Car Insurance Fronting

Whether carried out intentionally or otherwise, fronting is tempting because it saves money: it works because the higher risk driver, usually a young teenage male, avoids having to take out a policy in their name and instead becomes a named driver on a policy in the name of a lower risk driver (usually a parent). As far as the insurance company is concerned, the high-risk driver is likely to only use the car occasionally, so it offers a considerably lower premium, potentially saving thousands of pounds.

The only problem with the fronting tactic is that it's illegal. Giving any false information on an insurance application constitutes fraud, and this includes listing the primary owner and user of a vehicle as an "additional driver". Not only that, but the moment the insurer finds out, the policy becomes void leaving any driver on the policy uninsured, unprotected and potentially liable to prosecution and ceasure of the vehicle.

Stay With The Same Insurance Company

Some people simply allow their insurance policy to roll over without making any effort to shop around, and frankly there's not much can be done to help them: missing out on potential savings is simply the price of apathy. But some people stick with the same insurer thanks to a mistaken assumption: that transferring will mean losing a no-claims discount.

In fact, insurers are required to transfer your no claims discount history, and the old insurer must provide a certificate to confirm this. In other words, if you have three years without a claim under one insurer, another insurer will quote you in the same way as if you had been their customer for three too.

This is often confused with no-claims discount protection which requires an additional cost but will allow you to have one claim which doesn't affect your accumulated no-claims history. Although such a claim may still affect your no-claims record if you insure with a different provider in future.

Swap Your Car For A Cheaper Model

It might seem to make sense to downsize your car in the hope of saving on premiums, but this isn't always effective. It's not the inherent size or power of your car that decides the premium, but simply the potential costs of repairing damage. There are multiple factors at play, including some more obscure ones such as how widely available spare parts are for a particular model. Sure, a Maserati will usually cost more to insure than a Mini, but when it comes to two similar vehicles, it's not always easy to guess which will be cheaper. If you really want to find out which car would be cheaper, try running a price comparison quote online, but bear in mind you'll usually need a genuine license number of a car that fits the specific make and model you are considering buying.

To find out what money saving strategies do work and could cut your premiums every year, visit the car insurance articles page at UK Insurance Index for more tips.