Tips To Reduce Your Insurance Premium
It’s a very common question after passing your driving test “Have you got any tips on where to get cheap car insurance?”
Unfortunately many factors are taken into account when insuring a new driver such as age, experience, location, car being garaged, alarm type, modifications etc. It’s really a case of ringing around and finding an insurance package to suit you.
Here are some tips to reduce your insurance premium:
2 Years probation period
You can lose your licence within the first two years of receiving it if you notch up 6 points or more on your licence.
The moment you exceed 6 points your licence will be revoked and you will either go back to a learner status with a provisional or you may be banned depending on how severe the driving offences are.
If you passed fast like many of our students do when learning to drive in Leicester, then you may want to consider some extra training. The beauty with pass plus is that you can kill two birds with one stone. You can become a better driver and gain experience you didn’t learn in your lessons and you receive a certificate at the end of the course which can help you get up to 20% of your insurance. If your insurance is £2000 a year then the £400 saving pays for the pass plus and makes you a better driver too.
Black Box Insurance
It’s probably the only way your going to get your insurance down to a level which is affordable and leaves you enough spare money to put fuel in your car.
The black box insurance monitors how you drive the car in terms of speed, control and how aggressive you use the brakes on your car. On top of that some black boxes have curfews on them which means your car can’t be moving between certain hours – usually 11pm-6am.
Black Box training – beat the black box
If you are worried about how you drive and the affect it may have on the black box then why not try a 2 hour beat the black box lesson. In 2 hours one of our driving instructors in Leicester will show you what’s expected and how to drive in order to keep your insurance premium down.
Build up your no claims quicker
Certain insurers like Elephant offer an accelerated no claims policy. Basically you insure the car over 10 months and if you make zero fault accident claims you receive your first years no claims discount after 10 months.
Consider being the additional driver and make your parent the policy holder
It doesn’t always work but sometimes it’s worth asking the question. By having someone on your insurance who is considerably older and has a full no claims discount this can often reduce your insurance policy. The only down fall is that you won’t build up your own no claims discount but it could be a cheap way of getting you legally insured for the first few years.
This is only really important if you have bought a very expensive first car or you have borrowed ££££’s to buy a car.
In the event of an accident GAP insurance will ensure you get the full amount you paid for your car. Often when you buy a car the moment you drive it away it’s value is less than what you paid for the car. So if you have an accident 6 months later you could owe more on the car than whats its actually worth. For example, if you bought a Mini Cooper for £15,000, in 6 months time it could only be worth £13,000. You may have only paid off £1,000 on the car. Your insurance company pay out £13,000 but you owe Mini £14,000 because you had only paid off £1,000 since buying the car.
This is called negative equity and you can avoid this with GAP insurance. If you had GAP insurance you will be paid out £15,000 even though you only owe £14,000 in repayments to Mini.