The Discounts Which Lower Motor Insurance Premiums

auto insurance

Insurance premiums start at one price and then are reduced by a series of discounts. Depending on the company that you choose, or how switched on your broker is, motor insurance can be made much more affordable.

Companies such as one sure insurance will train their staff to obtain the best price for motorists, not just to gain their business, but so that they come away happy with a premium they are happy with. The motor insurance business is a very competitive one and is something of a buyer’s market for those looking to insure their vehicle so that they remain legally compliant and financially protected.

No Claims Bonus (NCB)

No claims bonus, or no claims discount, is the largest discount generally applied to a motor insurance policy. It will start as just an introductory discount, which can be 30% and the same as having one year of claim-free insurance, and then rise annually until it reaches typically 65% for those with five years of claim-free motoring. In-between, motorists can typically expect a 40% discount for 2 claim-free years, 50% for 3 years without a claim, and 60% for 4 years without an accident or theft on their vehicle.

Mileage Discounts

Those who are traveling 7,500 miles or less per annum, depending on the insurer, will more than likely, depending on the type of policy, be able to earn themselves a discount for low-mileage motoring. After all, if they are traveling less on the roads, they pose less insurance risk. Insurers will recognize this and reward motorists with a discount.

It is worth recording your mileage daily from the mileometer on your vehicle to see if, annually, you are likely to fall into the category of low mileage.

Voluntary Excesses

Where we have compulsory excesses on motor insurance policies, often as a result of young drivers, we will also have voluntary ones. These are excesses the policyholder can choose to accept in return for a lower motor insurance premium. It is a case of balancing how much you use your vehicle and the increased chance of having an accident.

Typically, you might have a compulsory excess of say £100 and then double it to £200 by accepting a voluntary excess on top. Where there are young drivers, you might find that a compulsory excess of £200 has already been added to make the premium affordable. In this instance, you may prefer not to increase the excesses further. You may think, why have insurance if you end up paying a significant chunk of the claim? It is up to you, but the option is there and could be something that saves you a lot of money over time when you know that you are a careful driver. We can, of course, not predict the actions of others and misfortune. Insurance does offer us peace of mind in that respect.

Thatcham Alarms

If you have a Thatcham-approved alarm, many insurance companies will offer a discount. It is important to make sure that your alarm is approved before fitting it. Otherwise, it may make no difference to your insurance premium whatsoever. You might as well have the double benefit of protecting your vehicle and lowering your insurance premium at the same time.

Camera Fitted

Insurance discounts are possible where you have a camera fitted to your vehicle that keeps an eye on the road. This is because you then have the evidence of whose fault an accident was in the event of a claim. Cameras also tend to make motorists drive more responsibly when they are also filming themselves each journey.

So, consider investing in a dashcam and see how it can reduce your insurance premium.

In conclusion, many discounts exist for motorists looking to insure their vehicles as cheaply as possible. The above information should provide you with some talking points to discuss with your insurers when it comes to you both trying to reduce the premium for all-around satisfaction. You then end up with cheaper insurance and they acquire or retain your business.

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