When you enter your details online and ask for a quote, the car
insurance rating system returns a price for your coverage determined by
the answers you give to the questions asked. This is exactly the same
process as if you walked into a high street brokers or telephoned a
company you found in say yellow pages. The difference online is that you
are doing the work filling in the form or researching the market for
yourself, saving the insurance company the cost of employing people to
process your application.
Online car insurance is therefore
nearly always a cheaper method of purchasing coverage as nearly all
online motor insurance companies offer an immediate discount to the
basic insurance rates, of at least ten percent for purchasing this way.
To get the cheapest cover then, it is necessary nowadays to spend some
The art to obtaining cheaper car insurance is found
in a combination of first identifying a set of policies or companies
that suit your particular insurance cover needs and then adjusting the
factors within the preferred policy to tailor the price of it to your
Different companies ask different questions to assess
your risk, but all ask a basic set of questions called rating factors.
Although rating factors vary from policy to policy, the standardised
method of rating a vehicle according to its risk group (engine size and
cost to repair) and a driver by his age and experience, apply almost
universally. When looking for cheaper insurance always answer the
questions asked truthfully, in order not to invalidate your cover.
answers to the standard rating factor and risk questions should always
be the same, as things such as your age or the type of car, do not
Identifying a company which is right for you is of
particular importance as it is not desirable to reduce coverages to save
on price. Getting cheaper premiums is about negotiating a price for the
level of cover you desire. For example, reducing your coverage from
comprehensive to third party fire and theft may save you a lot of money
up front, but will cost you dearly in most cases in the event of a
claim, especially if you are at fault!
A good place to start, if
you have the time, to get an indication of what you are likely to pay,
is to visit a car insurance price comparison site. These websites
compare rates and policies, often from hundreds of different insurance
suppliers. Some online systems particularly these so called aggregator
or price comparison sites are more often obliged to ask more questions,
so getting a cheaper quote can be time consuming. This is because
certain of the insurance companies on the panel require differing
information about the driver or the car, in order to return the quote.
This obviously takes a lot longer to complete the quotation and
purchasing processes where sometimes hundreds of policies are involved,
however the time spent is rewarded with a list of competing companies
offering a variety of quotes, giving you a very good indication of what
you are likely to have to pay. These may not be the cheapest quotes you
will find online, but being presented with various offers and options is
a starting point for identifying cheaper car insurance.
like a look of a particular policy that you have found on a price
comparison website, you can often save money by visiting the company’s
own website and applying direct. In order to ensure you get the full
benefits of cheaper cover it is often necessary to remove all cookies
from your browser window, before visiting the car insurance provider
It is also worth remembering that many of the cheaper car
insurance companies do not have their motor insurance products for sale
on the price comparison sites, and many make a point of this direct
exclusivity, in their advertising campaigns. These so called direct car
insurance companies are also able to offer large discounts for
purchasing their insurance because they cut the costs of production of
the policy by cutting out the costs of the middleman, in the form of a
price comparison site fee or insurance broker commission. The commission
savings these direct insurers make by conducting business this way can
then be passed onto their customers as cheaper car insurance premiums.
area to explore if you have particular driving coverage needs or own a
classic or expensive performance car, is the specialist car insurance
market. This market is comprised of many specialist car or niche motor
insurance schemes, often operated by much smaller companies who could
specialise in, for example, a particular classic car make and model
scheme, young inexperienced driver insurance, or drivers with
These specialist policies are often available at
much cheaper prices than both the price comparison sites and the direct
insurers because they have both the bulk buying power and mutuality of
affinity groups, where these economies of scale can be passed on as
cheaper car insurance premiums to the customer; and also benefit from
the fact that where the risk is known and can be grouped, much more
accurate and tailored risk pricing can be achieved. To identify a
suitable specialist company simply search online for insurance for your
Once you have identified a few policies that are
suitable for your personal driving requirements, there are certain
adjustments that can be made within the quotation system that will
reduce the premiums.
Many of the adjustments that online car
insurance applications allow you to make, do not reduce your levels of
cover but transfer some of the risk to yourself in the form of excesses.
The excess is the amount that you personally have to bear the cost of
in the event of a claim, before the insurance cover kicks in.
higher the excess you are prepared to accept on a voluntary basis the
cheaper the cost of the policy. This method of reducing premiums is fine
if you are a careful driver and do not believe that you will ever have
an at fault accident or claim. Higher excesses invariably mean small
claims for bumps and scratches are avoided. A new type of car insurance
called value insurance was recently introduced into the UK market by
supermarket chain Tesco.
The concept of this insurance is an
ultra high compulsory policy excess to deter all but the most serious
claims; coupled with ultra low premiums, sometimes as much as a third of
the competitors prices. Companies are able to offer this cheap coverage
because claims are reduced and profits higher.
in order to get cheap car insurance it is necessary to dedicate some
time comparing policies, plans, schemes, covers and prices. Going direct
or haggling on the phone can also sometimes produce spectacular price
reductions, particularly as there are many promotional offers these days
that are only available direct from the supplier. The more time you
dedicate to exploring and researching various car insurance options the
more likely it is that you will find much cheaper car insurance than you
are currently paying!