A recently published report has shown that drivers in the UK choosing to pay for their car insurance monthly rather than annually are considerably worse off. Figures included in the report show that paying car insurance premiums monthly can result in paying up to 40% more than you would had you paid for it up front.

There are currently around 33 million motorists in the UK. With about 13.2 million of these drivers choosing to pay for their insurance monthly, there are a huge number of people currently paying significantly more for their car insurance than they would if they paid it annually. In the UK, the average annual car insurance policy currently costs £778. When paid for monthly the same insurance policy could rise to £953.

Whilst most people are aware of the increased cost in paying for car insurance monthly rather than annually, just how much more expensive paying monthly can be will shock many. This is an extremely profitable tactic for car insurance providers. The reasoning behind it is that insurers see direct debit cover as a loan on the cost of an annual policy. If a motorist has an accident in the first month of their cover, the insurer still has to pay out without having received the total premium.

Taking this into consideration, the obvious solution to this problem is for all motorists to pay for their insurance policy annually. Unfortunately, this is not a realistic solution for many drivers as they are unable to afford the larger one-off payment required to pay for an annual car insurance policy.

In fact there are very few clear solutions to this issue. Where possible, motorists should try to pay for their car insurance annually as this will save them money over the 12 month period. The other key factor to saving money on your car insurance is to ensure that you shop around and compare a number of car insurance policies to ensure you find the best value policy available. The price comparison site Moneysupermarket.com compares over 100 leading car insurance providers making it easy to find cheaper car insurance. Be sure to visit the site when searching for a car insurance policy.

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Before, I had given the tips about the coverage types in your car insurance. So, for this entry we explore further for the car insurance tips topic entitled your vehicle affects your premium. Just go through the article below and you get the idea what is the meaning of this tips.

Insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or “totaled” in an accident. How expensive the vehicle is to repair — including parts and labor — can also affect the cost. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents.

According to HLDI (Highway Loss Data Institute), the lowest injury claims are from large vehicles — cars, pickup trucks, and sport-utility vehicles. Small 2- and 4-door cars have the highest injury claims. Small cars also are among the highest in collision costs, along with sports cars.

If you have your heart set on a sporty vehicle, you’ll probably pay dearly. Insuring a high-performance car can easily cost two or three times the insurance amount for an ordinary model.

Sport-utility vehicles, the hottest market segment, often have higher insurance rates than mid- and full-size cars, but some SUV models are relatively cheap to insure. SUVs are “hot” for other reasons: They are among the most frequently stolen vehicles, and they are more expensive than most cars. SUVs also can cost more to fix after an accident if the 4-wheel-drive system is damaged.

So, you get an idea about this topic? If you don’t understand just go through the above article again or you can read in detail from my source below.

Source:
1. http://auto.howstuffworks.com/cg-car-insurance-tips2.htm

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It is good to be educated on all of these different types of coverage before going out and buying a policy. If you need car insurance today then I recommend shopping online at The General, All State, Cheap Car Insurance, or State Farm.All of these companies have the ability to give a quote online.

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Hellos there.. For this entry I want to continue sharing with you all about the vehicle insurance. It is quite rare for a car’s blog to have the entries about the vehicle insurance, right? But you know that the insurance is one of the most important thing when you get to buy a car. So, let’s reveal on some of the tips when you insure your car. At least, you will not easily cheated by the insurance company. For this entry, let’s know about your coverage types.

Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone.

Property damage liability: Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states.

Medical payments: Pays for injuries to yourself and to occupants of your car. This is optional in some states. In “no-fault” states, personal injury protection replaces medical payments as part of the basic coverage.

Uninsured motorist protection: Covers injuries caused to you or the occupants of your car by uninsured or hit-and-run drivers. “Under-insured” coverage also is available, to cover claims you may make against a driver who has inadequate insurance. In some states, as many as 30 percent of drivers are uninsured.

Collision coverage: Covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium. While it is legally optional, a lending institution or leasing company usually requires collision coverage.

Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.

Read this :-

It is good to be educated on all of these different types of coverage before going out and buying a policy. If you need car insurance today then I recommend shopping online at The General, All State, Cheap Car Insurance, or State Farm.All of these companies have the ability to give a quote online.

You know your insurance’s coverage types now? Check your insurance policy again. That’s all for this entry. Next time, I will explain about another tips about the vehicle insurance.

Source:
1. http://auto.howstuffworks.com/cg-car-insurance-tips1.htm

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We continue discussing the other topic in the vehicle insurance issues. This time, I want to give information about the excess in vehicle insurance. What is excess and how this excess can happen? Continue reading the information below.

An excess payment, also known as a deductible, is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair “garage” (The term “garage” refers to an establishment where vehicles are serviced and repaired) when you collect the car. If one’s car is declared to be a “write off” or “total loss”(”write off” is commonly used in motor insurance to describe a vehicle the worth of which is less than the cost of repair), the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.

If the accident was the other driver’s fault, and this is accepted by the third party’s insurer, you’ll be able to reclaim your excess payment from the other person’s insurance company.

A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses vary according to your personal details, driving record and insurance company.

In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer is able to offer you a significantly lower premium.

As a driver, you must know all about the vehicle insurance. It is because if you know nothing about your vehicle’s insurance, the insurance company will easily cheating on you. So, be careful and know liability.

Source:
1. http://en.wikipedia.org/wiki/Vehicle_insurance

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