Since it is a legal requirement to have car insurance, the only issue becomes finding appropriate cover for the right price.
Every car is rated by insurance companies as to its performance and cost of replacement items in the event of an accident. Insurance groups for cars are an accepted standard across all companies meaning that a rating for one is the same for all.
Smaller supermini cars with low capacity engines fall into the lowest insurance group for cars. As such, they can attract some of the lowest insurance costs but other factors can also determine the premium charged. Generally speaking, the more powerful the car (as rated by engine size) and the larger the vehicle, the higher the insurance premium will be. Therefore looking at the insurance group for cars can help discerning drivers choose a vehicle that will help keep costs down.
Other ways of keeping insurance costs low are to look at including someone else on the policy as a named driver. Adding an older, more experienced driver to a younger person’s insurance can reduce the cost, but remember that the primary driver or owner must be the first named else the policy could be void in the event of an accident. Buying any vehicle for a newly qualified or high risk classified individual and not naming them as the primary driver is illegal. Young males are at the top of the insurance risk pile as evidence has shown they are the most likely group to have accidents. Premiums for young females can also be high but between half and two thirds those of an equivalent aged male.
Insurance companies are getting more sophisticated in the way they price their insurance and some have introduced novel ways to help keep costs down. With the advent of GPS technology, some insurance companies now offer a policy that monitors the driving habits of the policyholder and reflects this in a variable insurance policy price. So driving during the day and at sensible speeds will attract a lower premium that someone who drives at night or at higher speeds no matter what the insurance groups for cars being driven.
Choosing to pay the premium in one instalment can also reduce the cost. Whilst many insurance companies offer monthly repayment plans, the interest rate charged can be quite high. If the premium is high and cannot be paid easily in one payment then take a look at getting an unsecured loan from a high street or other provider as the interest rate charged may be lower, thus saving some money.
Check the insurance groups for cars and select a smaller, less powerful model to reduce the variable element of the costing. Next, look at adding named drivers to the policy and see if this helps. Finally and probably most importantly, make sure that you shop around and get lots of quotes. With comparison websites now taking a lot of the effort out of searching there can be no excuse for making sure you pay the lowest possible price for your car insurance.