Car Insurance – Things You Need to Know
Making the decision to modify your car can cost you in more ways than one. Yes, you will have to pay for the modifications but the sting in the tail might be the increased cost to your car insurance cover. If your modifications deviate from the manufacturer’s specifications, you insurance company will see this as an additional risk and will want to charge you extra for it. So even though modifying your car might be an attractive idea, it could cost you money by pushing up your insurance costs.
A quick way of reducing your insurance costs is to reduce the number of miles that you drive a year. Agree this beforehand with your insurers. They will expect the agreed mileage to be below the yearly average. If it looks as if you may go over the agreed limit, just speak to your insurers and they will make the necessary adjustments. This is an attractive option for insurers because the fewer miles that you drive, the less risk there is of you making an insurance claim.
One of the cheapest forms of insurance is 3rd party insurance but it comes with a significant catch. The insurance only covers the other party to an accident or other claim. This means that if you had an accident and you were at fault, then you will have to bear the cost of the repair to your vehicle. This can be very expensive if you have a good quality car. It might be less of a concern if your car is not worth very much. You have to weigh up the pros and cons. Some drivers consider getting a better cover under temporary car insurance although this may limit the length of time the cover might run for.
The significance of your no claims bonus cannot be over-stated because they represent a significant saving on what you pay your insurers. Insurers reward careful drivers who have not made an insurance claim for a number of years. This is because there are seen as a good risk. These drivers are awarded discounts on their premiums and the amount of discount depends on the number of years they have been claims free. So it’s worth your while preserving a good driving history.