272180 shareAcar users at 00:01 on Wednesday 1st Jun 2011
Share your journey with someone and half your fuel costs.
Cost Cutting Exercises
Recent reports have suggested that car insurance premiums are rising at a faster rate now than at any other time during the previous decade. With money being particularly tight in the wake of the recession, itís more important than ever to make sure that the money you do spend goes as far as possible.
Reducing your car insurance premium is probably easier than you think but to do so you have to understand the way that insurance companies calculate the cost of their policies. Insurance of any sort is worked out on value vs risk.
The value in this instance is the cost of your car and any car with which you have an accident, of the cost of repairing your car (and the car with which you have the aforementioned accident), and of any medical treatment you might require (and of the person in the other car).
The risk is the likelihood of making a claim, whether that be through your car being stolen, or through an accident. Young drivers have to pay more for insurance because statistically speaking they are more likely to make a claim.
To a certain extent it is a guessing game, but simple factors like the amount of time you spend on the road can have an impact. If you drive ten thousand miles a year, you are statistically more likely to be in an accident than if you drive a thousand miles a year. By reducing the amount you drive, you can reduce the cost of your insurance.
Thatís why car share schemes such as those run by shareAcar.com can save you a lot more than just petrol money. If you share a lift over a prolonged period (plausibly halving the amount you drive) your car insurance will cost you a lot less, and with the average cost of a comprehensive insurance being around £800, the money you save may well be quite significant.
Of course there are other, wider reaching benefits to car sharing. The majority of cars on the road during rush hour have only one person in them, if everyone shared with just one colleague, the volume of traffic could be halved, better for the environment, and better for the stress levels of everyone on the road.
The most effective way of saving money on your car insurance is simply to make sure that you get a good deal.
If you do your research and weigh up a number of options you may find that you discover good deals in unexpected places.
Itís also worth combining some of your services, like car maintenance, with insurance,
as whilst this might not mean the policy is all that cheap, itíll save you cash in other areas.
One interesting car insurance offer available at the time of writing comes courtesy of Kwik Fit Insurance whoíll throw a
10% discount from Kwik Fit centres into the bargain when you purchase car insurance from them.
A potentially very handy saving on future maintenance costs.
Visit their website for further information and to get car insurance quotes.
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