Lower Car Insurance Premiums

Isn't it funny how your car insurance premiums even with a good track record never seem to reduce?

Everyone aims to get lower car insurance premiums than they did from their provider the year previously. In an ideal world, providing that nothing had happened during the course of the year, your insurance costs would reduce slightly. Obviously you have to report to your insurer if you clock up any points on your license and they will take it into account if you make a claim. However, even if you do not have any points or accidents, your premiums may well go up, so why are lower car insurance premiums so elusive if you stay with the same provider?

Well, lower car insurance premiums tend to be elusive for two reasons. The first is inflation. Although your premiums may well rise more than the level of inflation, you have to take into account the level of profit that insurers make and the level of claims that they have paid out in a year. Although this may have absolutely nothing to do with you, you still have to contribute. Look at female drivers for an example. Before the advent of specialist insurance for women they were paying higher premiums to cover the premiums of male drivers.

The second reason why lower car insurance premiums may well be elusive is because many discounts expire and are not applied to the second year premiums. That includes initial online discounts as well as special offers. If your initial premium was significantly discounted then you will need to take that into account during your second year.

If you do want lower car insurance premiums then you are definitely not on your own. In fact, you are one of the majority but you may want to bear in mind that it may require you to get a range of quotes if you want to keep your car insurance within your budget.