Six costly car insurance mistakes lovemoney.com
There is no point in spending hundreds of pounds a year on car insurance only to find, when you come to make a claim, you’re not properly covered and your insurer won’t pay out.
But this is the risk thousands of motorists are taking by failing to read the small print on their policies, or by trying to cut corners and reduce their premiums.
There are a number of legitimate ways to bring down the cost of your policy, as we explain below. But there are also some money-saving tactics that motorists would be well advised to steer clear of.
DON’T turn to your parents for helpYoung drivers get a raw deal from insurers. Statistics show that motorists under the age of 25 are more likely to be involved in accidents, so premiums for this age group are always higher.
This has given rise to a practice known in the insurance industry as ‘fronting’: where a parent insures their son or daughter’s vehicle as the main driver, and puts the child down merely as one of the named drivers on the policy.
PR Web (press release)Adrian Flux Offers Tips for Students on Keeping Premiums LowAs young drivers, students are likely to find that once they've passed their test the biggest running cost is insurance. Indeed, a first car is often much cheaper to buy than to insure for a year. But Flux warns against being tempted by a cheap,
Daily MailCar insurance costs increase for 'go-fast' extrasSignificantly though, young drivers account for 34% of dangerous driving offences and a high proportion of those killed or seriously injured on the road. To reduce their car insurance costs, young drivers can take the Pass Plus driving test. Boy racer extras increase premiums by as much as £6225
Money High StreetCar insurance 'fronting' puts 19% of drivers at risk of breaking several other ways of saving money on young drivers' car insurance without breaking the law, moneysupermarket urges, such as buying online, fitting the car with an alarm or immobiliser, choosing a car with a small engine, taking a pass plus test, British motorists flout the law by fronting