Five Questions About: Car insurance premiums

 

Kevin Pratt,Moneysupermarket.com
Friday 13 April 2012 21:55
Comments

Why is car insurance so expensive?

Insurers have been losing money on car insurance. They blame fraud and exaggerated personal injury claims, and say whopping premiums reflect the increased risks they face.

Should I shop around?

Yes – drivers save an average of £375 by shopping around for the best deal rather than sticking with the same insurer. Don't worry about your no claims discount – you take it with you.

Should I change my car?

Some things you can't change – your age being one of the most important in insurance terms – but if your car falls into one of the lower groups insurers use to help set their prices, your premium will fall. Check the details at Thatcham.org.

What other practical steps I can take?

You can get discounts for fitting Thatcham-approved security devices such as an immobiliser and alarm. Cut your mileage, don't make any modifications (such as extra lights and spoilers), buy your policy online and pay the premium upfront rather than fork out interest on monthly instalments.

What about adding "named drivers" to my policy?

Having an older person, such as a parent, as a named driver can, in some cases, actually reduce your premium. But it's vital the person named as the main driver on the policy is the main driver in reality – otherwise you're committing a fraud known as "fronting". Our research found that more than a quarter – 27 per cent – of drivers would consider fronting to save money. But don't be tempted as not only is the practice illegal, it can invalidate your policy.

This information is provided by Moneysupermarket.com in good faith: neither that company nor The Independent can be responsible for its accuracy. It should not be relied upon in any investment decision, for which you should consider professional advice. The price of investments can go up as well as down and past performance cannot be relied upon as a guide to future performance.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in