How to keep your insurance costs down
Drive a smaller car:
HERE are some of the best ways to fight against your car’s insurance costs:
Downsizing will have a positive impact on your premium. Age and engine size affect the cost. But the effects are not always easy to predict or understand, according to Jonathan Hehir of InsureMyCars.ie. He says an insurer might attach a lower risk rating to a 2007 1.1-litre Ford Fiesta than to a 1.1-litre Peugeot of similar vintage. Despite being similar, insurers apply a wide range of algorithms and variables when assessing risk rating and profile, he says.
Before buying, contact insurers with details of the models you are considering.
If you are claims-free, it makes sense to regularly switch insurer. Compare rates. It is worthwhile using a broker. It won’t cost you any more than going directly to the insurer; the broker is paid by the company.
Be conservative with the car’s value. You can only claim what the vehicle is deemed to be worth by the insurance company’s assessor in the event of an incident. Check adverts to get a good market indicator of the motor’s value.
Alternatively, the Revenue Commissioners website (revenue.ie) has a valuation tool for each model/ year of manufacture, for vehicle registration tax purposes.
The excess is what you agree to pay before you can make a claim. Insurers are imposing higher and higher excesses. This reduces the risks for them, but means you can’t claim for small accidents.
The latter is a way of monitoring the location, movements, status and behaviour of a vehicle. You can do it with a smartphone. Insurer AIG offers discounts of up to 20pc for using an app that monitors driving style. AIG says there are potential savings of up to 25pc on premiums.
The online insurer markets its business at women, but the law means it cannot refuse to cover men. Because women have fewer claims, it tends to be more competitive than motor cover sold equally to both sexes. A recent EU gender directive - now law in Ireland - means men and women can’t be discriminated against on price of insurance.
Avoid modifying your car, unless you are increasing its safety. Even a small change, such as new alloys, can increase your premiums. Any changes should first be discussed with your insurer. However, modifications that increase safety, such as installing an alarm or immobiliser, can help cut costs.
If you can afford to. Paying for cover monthly is the same as taking a high-interest loan from your provider, with interest as high as 20pc imposed on top of the premium for paying by instalments.