/ 20 August 2010

Six ways to lower your insurance premiums

A 23-year-old male behind the wheel of a car has 535 times more chance of dying in a road accident than his female counterpart.

This startling statistic is provided by the Social Issues Research Centre in the United Kingdom.

Does this mean that young men are uninsurable? No — but it does mean that they will pay heavier life assurance premiums.

Bradley Du Chenne of Dial Direct Insurance has this to say: “Our experience shows that one’s driving risk reduces with age. Older drivers have fewer accidents than young or new drivers as they tend to drive more defensively and are more aware of other road users and the mistakes they may make. So we charge premiums according to a sliding scale, where an 18-year-old driver will pay the highest premium and the premium loading reduces over the years.”

Factors that determine premiums
Du Chenne says there are a number of factors taken into account when determining the premium you will pay.

These include the make and model of your motor vehicle, where you live, where your vehicle is kept at night, who the driver is, what your vehicle is used for and your claims history (so, for example, if you’re a 23-year-old man who’s been driving since the age of 18 without incident and without having made a claim, your will benefit from lower insurance premiums).

How how do you improve your risk profile

  • Shop around and find an insurer that can offer you the best levels of cover at the most competitive price. Different insurance companies also target different types of customers, so you might find the best prices are available from a specialist car insurance company that understands your personal requirements.
  • Remember that opting to sign with the provider with the lowest rates is not always wise. Look at other factors such as level of cover, client service and value-added benefits.
  • Make your car safer by installing a tracking device and immobiliser. You may then qualify for a substantial discount on your premium.
  • Keep your claims record clean. When you make a claim, your premium will in all likelihood go up. So don’t claim for small incidents that you could possibly pay for out of your own pocket.
  • Aside from price, you need to consider the levels and conditions of cover. Also, think about aspects like customer service, communication and support, because in the event of your having to make a claim, you will want your insurance provider to be as helpful and supportive as possible.
  • Read your policy, and then read it again. To avoid misunderstandings it is a good idea to be absolutely thorough when it comes to understanding the terms of your policy.

With a bit of legwork, it is possible to find a smart solution that fits your budget and offers peace of mind, so if anything unexpected happens to your home or car you will be covered. Even if you’re a 23-year-old male.

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