How to Reduce Car Insurance Premiums

Six Ways to Reduce Car Insurance Premiums:

          According to The Guardian, the UK insurance industry manages £1.8 trillion in investments annually. Even with all the revenues generated, insurers are always trying to indirectly charge greater premiums without you knowing, known as asymmetric information. This is where one person (either the buyer or seller) knows more about the good than the other. Therefore, due to this asymmetric information, these insurers take advantage of YOUR lack of knowledge of your vehicle and your own policy.   

 Here’s how you can avoid paying unnecessarily high insurance premiums:  

1) Fit an Alarm: If you own an old car without an alarm, insurance premiums may be high for you due to the risk associated with ease of theft for old cars, therefore alarms are a good deterrent. Also, if you live in a heavily crime ridden area, this can also help increase the security for your car and reduce your premiums.  

2) Fit a Tracker: Many believe fitting a tracker has the same effects as fitting an alarm, however, trackers are usually more effective in reducing your insurance. This could help also with thefts of vehicles again if you live in an area tied with many car thefts.

3) Fit a Dash Cam: Dash cams are a great method for cutting premiums and in an incident of accidents. Usually, if a dash cam is installed, many insurance companies would drop premiums upon the bases that in event of an accident, recordings are present of who is at fault, meaning it is easier and quicker for the insurers to complete claims.  

4) Tweak your Job Description: Without lying, attempt to make your description sound fancy, most insurance premiums are based upon assumptions, meaning your occupation entails many assumptions about you, for example an accountant compared to a school student.  

5) Pass Plus: Take a Pass Plus course to attempt and reduce your premiums up to 30% depending on the insurer. For young drivers, this is a great method to bag in a great bargain.  

6) Blackbox: If none of the above work for you, your last option in attempt to reduce your premium is to fit a blackbox. Although none of us want an electronic device to monitor our acceleration, speed, and braking, it is the most effective option.    

Hopefully these tips are good enough to help reduce premiums, if not, your best bet is to use public transport.