Car insurance rates are prohibitive nowadays. Many families really struggle to pay the car insurance bill each month. And car insurance rates vary all the time. So if car insurance cost is an issue for you, what can you do about it?

The car insurance industry is a massive industry. It is also a highly competitive one, and car insurance rates vary over time as car insurance companies compete for business. Car insurance rates are often highly fluid.

It is entirely possible to lower the cost of your auto insurance rates by altering your behaviour, and you can do this by having a better understanding of how the rates are assessed.

Car insurance rates are based on an assessment of risk. Whilst insurance companies vary their rates to compete with other insurance companies, they also vary their rates based on their assessment of the risk posed by a particular driver driving a particular car. They do this because there is no point in buying business with low car insurance rates and then insuring high risk drivers at these rates. This is a recipe for losing money.

So, if you lower your risk, you lower your car insurance. How do you
lower your risk? Well theres a number of ways that your own driving and car behaviour can affect your car insurance rates.

Have a look at the car you drive. Is it suitable for your current needs? If not then would it be worthwhile to consider a change?

Different cars attract different auto insurance rates. Sports cars, high powered cars and cars at greater risk of theft attract higher rates. How long have you had your car and would it be wise to think about another one that would be cheaper to insure and more useful to you?

Are you a safe driver? Do you stick to the speed limit? Are you at risk of other driving offences? Many people do not think about some of the consequences of speeding tickets and driving offences until after they have seen their subsequent car insurance bill.

Your risk profile is a direct result of your driving record. A clean driving record and you will be rewarded by cheaper rates. A poor driving record and you will be penalised, usually for quite a while.

Are you willing to attend driver training courses? Many car insurance companies offer specific discounts for drivers who have attended a course. Why? Lower risk.

Are you willing to drive less? Could you car pool or use public transport to get to work? Car insurance companies look at the amount of driving their clients do when assessing their car insurance rates. Why? Lower risk. Less miles driven equals less risk. And youll save on other car costs too.

So if auto insurance costs are an issue for you and your family there are things you can do. These are just a few of those things, there are many more. Car insurance rates are not set in stone.

Thousands of individuals obtain cars from car rental agencies each year, but when it comes to protecting themselves financially while in possession of the car, many individuals have questions about the best way to protect themselves. One of the biggest questions that may be on their mind is whether the rental car insurance supplied by their golden or platinum credit cards is adequate protection against damage or theft of the rental car. Many individuals decline the rental car insurance offered by the rental car company because they believe that the insurance offered by their credit card is enough to handle any issue that may arise. So are they correct?

The short answer is that it depends on the specifics of the insurance offered by the credit card company. There are many credit card companies that claim that if you rent a car using their credit card, they will provide insurance coverage for you for as long as you have the car. For many individuals, this seems like adequate protection for any instances where they need to rent a car. The problem occurs when the individuals fail to read the fine print of their credit card disclosures. Although many credit card companies offer rental car insurance, the actual items covered may vary from company to company.

Reading the disclosures for the rental car insurance portion of the credit card terms and conditions can save an individual a great deal of hassle in the long run. For instance, while some credit card companies claim to offer full coverage insurance for the rental car, it is only valid if the car is rented from a certain car rental agency. The coverage may also be limited to a certain type or class of car, meaning that if any other type or class of car is rented, the coverage will not be valid. Other credit card companies limit their liability to the amount of the deductible of your personal car insurance policy and will not pay above this amount to have the car repaired or replaced, leaving the card owner responsible for the rest of the costs.

Even the credit card companies that offer extensive insurance coverage for rental cars will typically only provide collision and comprehensive coverage for the car, leaving the card holder responsible for any property damage or personal injury costs that may be incurred. Credit card companies also do not typically provide reimbursement for any personal belongings that may be lost if the car is stolen while in the card holders possession. Its a good idea to take any valuables you may have in the car with you. Although the credit card rental car insurance may help the card owner a great deal when an issue arises, a card holder that depends on this insurance alone may find themselves in a tight spot if the insurance does not cover what they think it does. Make sure that you read the fine print and are aware of the coverage that it provides before your next car rental.

Many factors influence the premium for your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote – some of which will affect your premium and some will not. Below we discuss the key variables that are within the policyholder’s control.
Location
A big influence on the cost of your car insurance is where you live. The chance of your car being broken into or stolen is a key concern for the insurer. More urban areas traditionally facing greater risk of theft and therefore tend to be more expensive than countryside locations.
Excess
By agreeing to pay a greater excess on each claim you can reduce your car insurance premiums. This is because you are reducing the liability of the insurer and therefore in return they are able to offer you a lower premium.
Your Vehicle
The cheaper and slower your vehicle the lower your premiums are likely to be. If you are looking to buy a new vehicle make sure you fully consider the cost of insurance you may be able to buy the car but can you afford to run it?
Consolidating policies
By insuring a number of vehicles with the same insurer, or by trying to take out home and life insurance through your car insurer, you may be able to secure a bulk buy discount.
Parking
Where you park your vehicle overnight is also very important to the insurers. If it is kept in a locked garage, you should be offered a lower premium than if you leave it unattended in the street.
Mileage
You can control your insurance premiums by restricting your annual mileage. However, be aware that if you exceed the restricted number of miles you’ll then become uninsured!
Security
Security devices that prevent or hinder theft may also reduce your premium. Common examples include alarms and immobilisers, however, be aware that as we improve the quality of our security devices the thieves just become better at bypassing them.
No Claims Discount
Save up your no claims discount by avoiding making small claims upon your policy. After a set number of years, 4 or 5 typically, you’ll often be offered the option to pay an additional small premium to protect your no claims bonus. This can prove very helpful if you subsequently end up having an accident.
Your Sex.
Women are statistically less likely to have an accident and, if they do, it’s less likely to be serious. Because of these statistics women benefit from lower premiums. It is also worth noting that if you represent one half of a couple you should consider having the female as the primary driver with the male as the second driver.
Advanced driving skills
By taking an advanced driving course you may also be able to reduce your premiums. The Institute for Advanced Motorists and the Royal Society for Prevention of Accidents each offer membership which provides you with discounts for both the cost of driving courses and your car insurance premiums. Two key variables NOT within the policyholder’s control.
Your Age
The older you are, the less likely you are to make a claim. As a result insurance companies charge lower premiums for more mature drivers.
One final piece of advice.
A large percentage of car insurance is now sold on the Internet. That’s because it’s convenient and cheap. Many insurers now give a further 10%-15% discount if you buy online.

Car insurance is one of the most expensive costs involved in driving a car, and it’s not something you can avoid – a minimum level of insurance is required by law. That doesn’t mean you have to blindly pay whatever your insurer quotes though, as there are several simple things you can do to reduce the cost of your premiums.

1)Shop around and buy online: Figures show that many people simply renew their current policies without shopping around. The internet makes it easy to compare prices from different insurers, so why not take advantage of this? Plus, you’ll usually get a discount of 10% or more just for buying your policy online.

2)Policy type: do you really need a comprehensive policy with all the extras? Going for a third party fire & theft policy can reduce your premiums hugely, and is definitely worth considering if your car isn’t an expensive model.

3)No claims discounts: Nearly all policies feature a discount that increases for every year you don’t make a claim. The higher the discount available, the more you could save. Also look at insurers offering a ‘no claims bonus for life’ feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere down the line.

4)Excess: The excess on a policy is the amount of a claim you have to pay before the insurer pays the rest. Choosing to have a higher than standard excess level will usually mean lower premiums.

5)Security: Fitting your vehicle with an alarm, immobiliser, or other security devices can lead to premium reductions. Parking you car off-road, for example on a driveway or in a garage, will also mean a cheaper policy.

6)Pay annually: Many insurers charge you interest for the privilege of paying in monthly installments. Pay annually if you can afford it to avoid this, or look for one of the companies who don’t charge extra for monthly payment.

7)Mileage: The more mileage you run up every year, the more your insurance will cost. Even if you can’t reduce your mileage, make sure you’re not overestimating how much you actually do drive, and give your insurer an accurate figure.

8)Drivers: The more drivers you have on your policy, the more it will cost. Reduce the number of people insured to drive your car to the minimum possible, and try to get the policy in the name of a driver with the lowest risk profile. For example, if a car is driven by both a man and a woman, insuring it in the woman’s name will often result in a cheaper quote.