Tricks To Reduce Your Insurance Premiums

Sunday, 24. October 2010

I was talking to an insurance broker recently and he was explaining that because of the competitive nature of the comparison sites the insurance companies are doing everything to keep premiums as low as possible. One of the tricks they use, I reported a couple of weeks ago, has been to vastly increase charges and fees so that they don’t have to increase premiums, the other is of course to avoid payouts wherever possible. Loss adjusters are appointed by insurance companies to find ways to minimise payouts and one way has been to check every detail on the policy. As the broker pointed out, it is important to explain to the insurer if any extras have been fitted over and above the standard spec of the car, as this may affect the insurance cover, but just as important is to inform the insurer if you change address, as he pointed out, a theft claim was rejected in part when a driver hadn’t informed the insurer that he had moved to an area, considered by the insurer, to be a higher risk area and the new address where the car was kept overnight should have attracted a higher premium. The bottom line is to make sure that you keep your insurance company informed of any changes in circumstances. One final tip, many people say on their application that their car is garaged overnight, believing that this will reduce their premium, even when it’s not. It has been shown that some insurers actually increase the premium if your car is garaged so well worth checking the effect on your premium if in fact your car is parked on the street overnight. Have you experienced any problems with a claim? By Graham Hill