Category Archives: Insurance

Appointments, Insurance, News

Aston Lark builds team in Wales

Leading insurance broker Aston Lark, a Howden company, is building its team in Wales with a key new hire, as it looks to cement its place within the region.

Catherine Robinson, from Neath, has joined Aston Lark as an Account Executive, and will play a key role in growing the company’s client base within South Wales.

Catherine has over 25 years of experience in the industry, spending her career so far at Keen Insurance, where she held the position of Director and Commercial Insurance Broker.

Catherine will be responsible for building and managing Aston Lark’s growing commercial client portfolio and will work closely with the firm’s Regional Director Gary Stevens.

Discussing her new role, Catherine said: “I’m thrilled to have joined such a dynamic and forward-thinking organisation during this exciting period of growth.

“I look forward to playing a part in developing our offering within South Wales and empowering our clients through comprehensive insurance solutions.”

Outside of work, Catherine is a keen runner and fundraiser, having raised over £3,000 during her first London Marathon this year for Young Lives vs Cancer, and will be running the Edinburgh Marathon for the same charity in 2024.

Catherine, left, raised over £3000 for charity during the 2023 London Marathon

Regional Director for South Wales, Gary Stevens, added: “Catherine brings with her a wealth of experience in the insurance industry and is poised to make a significant impact in terms of expanding our network.

“Her ability to foster strong relationships with clients, stakeholders, and industry partners will undoubtedly strengthen our position as a leading insurance provider and we’re very pleased to have her on board.”

The new South Wales office was launched earlier this year with Gary at the helm, one of several strategic locations where Aston Lark intends to grow its headcount. Gary brings with him almost four decades of experience in the insurance industry, of which 21 have been devoted to delivering insurance broking services in Wales.

Aston Lark, part of Howden Group since April 2022, has more than 75 offices in the UK and Ireland, with 2,000 employees serving 200,000 customers.

Driving, Insurance, News

UK Motor Insurance Prices Surge by 2% in Q1 2023; Utility Saving Expert Emerges as a Solution to Counter Rising Costs

In a report recently published by the Association of British Insurers (ABI), the organisation’s Tracker revealed that the average price paid for car insurance has risen by 2% in the first quarter of this year to £478. The ABI’s Tracker uniquely focuses on the actual price consumers pay for their coverage, not merely the quoted price.

This rise in motor insurance prices can be attributed to cost increases surpassing inflation rates that insurers are currently facing. Despite these challenges, insurers are striving to provide competitive deals amidst continuous cost pressures.

Further details from the ABI’s Motor Insurance Premium Tracker include:

 

  • The average premium paid for private comprehensive motor insurance in the first quarter was £478, a 2% increase from the last quarter. This current average premium is 16% higher than Q1 2022, marking its highest point since Q4 2019 when it was £483.
  • The average price paid by drivers renewing their coverage went up by £8 to £436, whereas the average premium for a new policy rose by £14 to £545.
  • This increase mirrors the continued cost pressures insurers are experiencing, such as escalating raw material costs necessary for vehicle repairs.

 

Following the introduction of the Financial Conduct Authority (FCA) rules on motor and home insurance pricing on 1 January 2022, renewing customers are ensured not to pay more than what is charged to a new customer for a comparable policy purchased via the same distribution channel, such as an insurer, broker, or price comparison website.

 

Chris Richards, Founder of Utility Saving Expert, commented: “At a time when households are grappling with escalating living costs, the last thing needed is an increase in motor insurance premiums. Motorists naturally seek the most advantageous insurance deals, and insurers are striving to maintain the competitiveness of motor insurance prices. However, insurers, like numerous other industries, are confronted with escalating costs. The prices of certain raw materials coupled with energy costs are surging, significantly exceeding average inflation rates, making it increasingly difficult to absorb these expenses.”

 

Nonetheless, these rules do not stipulate or limit the premium paid by new or existing customers. Insurance coverage prices will continue to be influenced by various factors, including claim settlement costs.

The soaring cost pressures persist in impacting premiums. ABI members have pointed to several factors contributing to these pressures:

  • Energy inflation contributes to each repair.
  • A nearly 16% increase in average paint and material costs.
  • Courtesy car costs to repairers rose approximately 30%.
  • According to Auto Trader, the average price of used cars has surged by 30% in three years.

 

UtilitySavingExpert.com compares prices across a wide variety of car insurance options, including breakdown cover and specialised products like motor trade insurance. Each year, they assist many households and businesses in discovering more cost-effective insurance solutions, collaborating with more than 400 insurance brands spanning 60 different products. Their service comes highly recommended with an ‘Excellent’ rating on Trustpilot.

Insurance

4 Tips To Cut Down Business Insurance Costs

Insurance coverage is vital for business owners to protect against unforeseen financial losses. Yet the high cost of insurance premiums can burden small businesses struggling to maintain their financial stability.

In the UK, SMEs account for 99.9% of private companies and generate more than half of the overall turnover. However, almost half of these businesses do not have commercial insurance and are exposing themselves to potential financial risks. 

If you’ve been putting off getting business insurance, now is the time to reconsider. Fortunately, there are ways to lower the cost without sacrificing coverage quality. Read on to discover four valuable tips to help reduce your business insurance expenses:

1. Shop around 

If you’re just about to start a business, shopping around for insurance policies and companies is essential to ensure you get the coverage you need at a reasonable price. As a new business owner, you may wonder, ‘What insurance do I need to start a business?’ The answer varies depending on your business’ industry, size and specific risks.  

Shopping around for insurance providers and comparing quotes can help you determine the types of coverage you need and which providers offer the best deals. Refrain from assuming that the first policy you come across is the best fit for your business.

Take time to research and compare options. Doing so arms you with enough information to come to the right choice and get the most out of your insurance coverage. Engaging a broker could also prove beneficial as they can assist in navigating the varied options and negotiating rates on your behalf, potentially saving you money. 

While shopping around, remember that insurance costs vary depending on the type of business, the level of coverage and the industry’s risks. Consider deductible amounts, coverage limits and policy terms before deciding.

Due diligence helps you evaluate each policy’s cost-effectiveness and determine the best deal for your business. At the same time, you protect yourself from potential losses adequately. 

2. Bundle your policies 

Another option to reduce your business insurance costs is to bundle your policies. Insurance companies often offer discounts when you purchase multiple policies, such as combining general liability and property insurance.

Bundling policies saves you money and simplifies managing your insurance coverage. You can have a single point of contact for all your insurance needs, making it easier to make claims or modify your coverage as your business evolves. 

Aside from property and general liability insurance, you may consider bundling commercial auto insurance, professional liability insurance and cybersecurity insurance. Cybersecurity insurance can help protect your business from data breaches, identity theft and financial loss.

Bundling your policies allows you to tailor your coverage to your specific needs and budget while enjoying cost savings and greater convenience. 

3. Consider pay-as-you-go policies 

A viable solution to lower insurance costs for businesses with fluctuating revenue or workforce is pay-as-you-go insurance policies. These policies offer the flexibility to purchase coverage only when your business needs it instead of paying for coverage year-round.

For instance, you can purchase workers’ compensation coverage for a short period during your busy season when your workforce is at its highest. As such, you avoid paying for coverage when your business is less active and save money. 

Pay-as-you-go policies cater to a business’s specific needs, making them a cost-effective option. These policies also offer better cash flow management as you only pay for coverage when needed. 

Additionally, you can easily adjust your coverage levels to match your business’s changing needs without incurring high costs. If your business is seasonal, pay-as-you-go policies can be a viable option to manage your insurance premium expenses while providing adequate coverage. 

4. Review your coverage regularly 

Regularly reviewing your business insurance coverage is crucial to ensure you’re not overpaying for unnecessary coverage or leaving gaps in your protection. As your business evolves, so do your insurance needs, making it vital to assess your coverage regularly.

For instance, if you’ve downsized your business, you may not require as much coverage as before. Reviewing your coverage can help you identify areas where you can cut back, ultimately saving you money. 

In addition, reviewing your coverage regularly can help you identify any gaps in your coverage that need addressing. These gaps may arise due to changes in your operations or industry regulations, exposing your business to potential risks.

Staying up-to-date with your coverage and addressing any gaps promptly can help mitigate the risks associated with such exposures and ensure that your business is adequately protected. 

Final words 

While a Deloitte survey suggests that 80% of respondents anticipate spending the same or more on business insurance in the coming years, it’s important to note that there are various methods to reduce the cost of premiums. Don’t let this discourage you from obtaining the necessary coverage for your business. 

By shopping around, bundling your policies, increasing your deductible, improving your risk management practices, reviewing your coverage regularly, considering pay-as-you-go policies, maintaining good credit and taking advantage of tax deductions, you can significantly reduce your insurance costs while still maintaining quality coverage. Remember to consult with insurance professionals to help you navigate the options and find the best deal for your business. 

 

Employee Benefits, HR, Insurance

Five things HR Teams need to know about group life cover should the worse happen

Written by Anne Drugnick, Director, Health and Protection, Punter Southall Aspire

Forgive the morbid headline but there are, within its grim parameters, details worth knowing when it comes to group life cover.

If group life cover is a baffling phrase, it is also known as group life assurance or, among those employee benefit consultants who still use quill and parchment, death in service benefits.

More succinctly, it’s the insurance employers put in place to pay out to loved ones if an employee dies while on the payroll.

One ever-present aspect is that it remains a sensitive subject, even with the recent unpleasantness of the pandemic bringing the concept – and reality – one step closer to our everyday existence.

So I’ll try to make it as palatable – and genuinely informative – as I can.

 

1. More of us are dying than we’d expect. The excess death rate in England and Wales the number above what would be considered normal, is up 20 per cent between 2020 and 2022. Closer inspection reveals the spikes causing this were in the depths of covid.

There will be other aspects and features for statisticians (and insurers) to pore over, but one fundamental is unchanged: on average, one employee in every thousand dies each year.

 

2. And the urban myths which surround this reality are worth addressing. One we hear all the time is that you have to be at your desk/workplace or travelling to or from it when the fateful moment arrives in order for a pay-out to be made.

The reality is that you have to be on the payroll and employed. If the worst were to happen, working out proximity to your place of work or whether or not you were commuting is something even actuaries might fight shy of factoring in.

 

3. That’s not to say there isn’t an algorithm probably developed for this specific purpose but the fact it doesn’t need to be applied is because the cost of this cover is so cheap. Fierce competition between insurers means very low premiums.

Very broadly, it can cost as little as £1 for every £1,000 of cover. Employers can also write off the cost against corporation tax but, most importantly, the pay-out is generally tax-free.

 

4. Group, as opposed to individual, cover is also comprehensive when it comes to the cause of death, as it pays out in cases of suicide. Cold comfort, perhaps, but some comfort, nonetheless. Little more can be said sensibly beyond noting this as a feature you or your colleagues will ideally never have to call on. The insurer’s conundrum is they cannot rely on simply hoping something doesn’t happen.

 

5. Headline visually and instantly the benefits to those who need clarity and peace-of-mind. Insurance of this nature is routinely described in multiples of salary, in that four years’ worth is the standard sum paid. Why not take it a step further?

For example, “£120,000 is what your family will be paid in the event of your death. This is equivalent to four years’ pay which will not be taxed.” It’s a small but significant step in helping colleagues connect to a financial lifeline at the worst possible time.

 

Finally, if there were five-and-a-half things to consider, I would also advocate employers loosen the tie between individual salary and pay-out. There is momentum behind grading lump sums more broadly, rather than being calculated on each, specific salary. Detail aside, it becomes an even more compelling demonstration of the value your organisation literally puts on colleagues’ lives.

 

Insurance, News

Insuring yourself: tips for taking out a new policy

If you are in the process of deciding whether or not to take out life insurance, you may be unsure of where to turn. There might also be a number of providers who could offer you the insurance you require. Rather than making a rash decision, you might want to ensure that you have as much information as possible before signing any documents or locking yourself into a price plan. This can give you some assurance that the plan you’ve chosen is right for you.

Think about what you need

When taking out life insurance, there is no singular plan. You might be able to opt for more or less coverage, depending on what you wish to pay each month. Generally speaking, lower payment upon your death may come with a reduced monthly payment. Likewise, your next of kin gaining more money might cost you more. You may also want to compare life insurance plans to see what is covered, from natural disasters to illness, or even workplace injury. Doing so can allow you to put together a plan that fits you as a person, as well as what you would like your beneficiary to receive when you are gone. Communicating your needs, as well as answering all questions honestly, can be important. 

Payments can vary

Should you discuss your quote with others, you might find that they pay less or more than you each month. While some people may be overpaying for what they get, there might also be valid reasons why a person could be paying more for their policy. In particular, your line of work could result in a difference in price. Life insurance may cover you for death, paying out a lump sum to your nominated person. Therefore, a more dangerous job could make early death a little more likely. Due to this, insurance companies may require a higher premium to try and build up your cash pot. If they didn’t, and had to pay out large sums with only minimal payments, they could end up out of business.

Ease of payments

Some people might be put off of applying for life insurance because they don’t want to remember to make the payments each month. Thankfully, an insurance company may be able to set up a payment plan so that the money is taken automatically. Usually, this may involve a direct debit. This gives instruction to your bank to take the specified amount, normally on the same day each month, and deposit it into the company’s account. It is likely that you already have direct debits set up for other bills, so this may be something you are already used to using. Not only can this make getting your life insurance policy a little easier, but it may also reassure you that your payments are going to the right place.

Taking out life insurance may involve a lot of consideration. Following this, you may want to think about your level of cover, as well as what is affordable each month.

Driving, Insurance

How Does Gap Insurance work?

Gap insurance is a type of vehicle insurance that can help you cover the difference between what your car is worth and what you owe on it. It’s especially valuable if you have an older car or a leased vehicle with a low down payment, since those are the types that tend to depreciate faster than newer vehicles.

What is Gap Insurance

Gap Insurance is a type of car insurance that protects the difference between the market value of your vehicle and what you owe on it. If a lender requires gap insurance as part of their terms, they will pay this amount if your car is stolen or totaled in an accident. This can help to cover the costs of replacing your vehicle when there’s no money left to pay off its remaining balance, which would otherwise be financed through another loan or personal loan with high interest rates (if possible).

Gap insurance isn’t required by law but it’s still recommended by most lenders because it provides additional protection against accidents and theft–two things that can cause serious financial strain for drivers who aren’t prepared for them financially

Is Gap insurance the same as car insurance?

Gap insurance is not car insurance. It’s a separate policy that covers the difference between the amount you owe on your loan and the amount of your vehicle’s value if it’s totaled in an accident.

Gap insurance isn’t required by law, but it can be beneficial if you lease or finance your vehicle. If there were ever an accident where repairs exceeded what was owed on your loan, gap coverage would protect against this common scenario by covering those costs so that they don’t become yours to pay off yourself (and add up quickly).

How does gap insurance work?

Gap insurance is available for all new and used vehicles, it is not mandatory,  but it is useful for owners of both new and used vehicles.

When you purchase a car, and insure it, you will insure it for the full purchase price.

However, this does not mean that if your car is a total loss due to theft or an accident which writes it off that this is the amount your insurer will pay out.

Whether new or used, the value of the vehicle will depreciate as soon as it leaves the forecourt – and your insurer will only reimburse your loss for the current value of the car – which can mean a big gap between what you receive as a settlement and what you still owe on your finance agreement.

Gap insurance covers the difference between what was owed on your loan and how much your car insurance company pay you.

This is especially useful for new cars, which tend to depreciate very fast in the first year.

How much cover does Gap Insurance Provide?

This depends on each individual policy and you should enquire as to the best policy to meet your needs.

From our research of the most popular insurance companies that offer GAP, the value of cover varied. For example, Dynamo’s GAP Insurance covers cars up to £80,000, whereas others tended to be a lot less.

Is gap insurance worth it?

Gap insurance is one of those insurance policies that is almost always regretted when not purchased and the ‘it won’t happen to me’ event happens!

It is impossible to predict whether your car will be stolen, or if someone else will drive into your car, making it a total write-off – but when it happens to you, without gap insurance there will almost certainly be a big difference between what you pay and what you owe on your car, and as well as the hassle of finding a new car, the driver is left with an unexpected debt to their finance company which will need to be repaid.  It is therefore worth it for most drivers buying a vehicle on finance.

In short, it’s possible to make short term savings by saying ‘no’ to the offer of gap insurance when taking out car finance.  However, if you don’t and your vehicle is written off for any reason, you will almost certainly regret it.

 

 

Appointments, Insurance, News

Towergate Insurance Brokers expands claims team

Leading independent insurance brokers Towergate Insurance Brokers continues to strengthen its Cardiff claims team with the addition of two new starters.

Claire Richards has joined Towergate as a claims team leader and Hannah Hawkes joins as a claims executive, both leaving previous roles in Thomas Carroll.

Claire has a wealth of experience in large corporate clients and complex losses and will bring this to her new management role, where she will lead a team of ten.

Hannah, one of these ten, will aid Claire’s team with her in-depth industry knowledge and excellent client relations.

 

Discussing her new role, Claire said: “I’m very happy to have joined such a well-known business as Towergate, and the opportunities it provides have already lead to exceptional personal growth. Stepping into a management role means I am facing new challenges every day and I’m excited to see where it will take me. I look forward to continuing to develop alongside my great team and helping them along the way too.”

 

Hannah said: “I’m very excited to have joined Towergate with Claire and look forward to working with her in the claims team in Cardiff. While working within such an exciting field, Towergate has given me the confidence to expand my knowledge and work with new clients, and I can’t wait to see what else is to come.”

 

Justin Newton, Area Managing Director Wales at Towergate Insurance Brokers, said: “We are thrilled to welcome both Claire and Hannah to the team in Cardiff, further expanding our expertise and developing strong client relationships.”

 

Towergate Insurance Brokers is one of the UK’s leading independent insurance brokers and risk management advisors. Boasting an experienced team of insurance specialists, Towergate Insurance Brokers has built a solid reputation for understanding many business sectors and industries, and the everyday risks they face in today’s increasingly complex world. They also look after the insurance needs of private individuals and families seeking tailored personal covers.

Insurance

Thomas Carroll launches insurtech start-up TCi Futures

Thomas Carroll insurance brokers has launched a new insurtech company, TCi Futures.

The new brand will focus on developing innovative tech solutions that will help the broker market keep pace with online markets, and ultimately provide an improved purchasing experience for their end customers.

Although founded through Thomas Carroll, TCi Futures will be autonomous, working independently to develop bespoke insurance technology for clients from various sectors, as well as some direct-to-consumer products.

One of the core products that TCi Futures has launched with is “embedded insurance”, which provides retailers with a way to offer their customers a more personalised experience when protecting their online purchases. It means that businesses in this sector can create a more dynamic sales process that’s tailored to the individual, providing options that are affordable, relevant and convenient.

TCi Futures is headed up by Managing Director David Lewis, who has more than 40 years’ experience working within the insurance industry in the City of London, as well as implementing growth structures for major insurers such as Marsh McLennan and Willis Towers Watson.

David is joined by Operations Director Natalie Sankala, who was previously Head of Group Sales at Thomas Carroll, before establishing TCi Futures with David.

David said on the launch: “We have big plans for TCi Futures and are really excited about what we can offer our partners. Insurance and the way consumers interact with the buying process has changed irrevocably, and the broking industry has had to adapt accordingly.

“Now, combined with Thomas Carroll’s expertise in this sector, we are able to develop some really great propositions for our customers, and subsequently their customers.”

Rhys Thomas, CEO of Thomas Carroll Group, said of the launch: “We are determined to build and protect the Thomas Carroll Group for future generations, and to do that we know we need to be thinking differently.

“This is an important move for us as we explore new and innovative ways of working that offer the potential to generate opportunities for our colleagues and clients.”

For more information at TCi Futures, visit: https://www.tcifutures.co.uk/

Insurance, News, Property, Property News

Top 3 UK regions for buy-to-let landlords in 2023

Property investors head north for long and short-term ROI

Rapidly rising house prices are finally beginning to slow down in parts of the UK. However, while some might have expected traditionally more expensive regions like London to continue to outpace other areas, research compiled by Quotezone.co.uk suggests it is actually the northern regions of England where property prices are continuing to soar.

Interestingly, it is also these areas that currently have the highest yield on rent, making 2023 the year to snap up property in the North East, North West & Yorkshire for buy-to-let landlords looking to achieve both short and long-term return on investment.

Currently the North East of England takes the top spot for rising house prices, increasing at a rate of 17.3% this year, compared with London at 6.7%.  The rental yield on property in this region is also the highest, with Newcastle at 10.10% compared with just 2.3% in London.

Quotezone.co.uk has predicted the top 3 areas that will be most desirable for buy-to-let landlords looking to invest in the UK property market over the next year.

 

1. North East

Taking the top spot is the North East of England, with a house price increase of 17.3%*. Demand for rent is high in this region as hybrid-working continues to make central cities less crucial for workers, and push renters towards larger property options with rural, coastal or riverside locations.

2. North West

Although the average property price in the North West is just shy of £165,000, research shows increases are currently sitting at 16.1%. What makes this area even more attractive to buy-to-let investors is the 400,000 university students that will descend on the core cities each September. With high demand comes even higher rental yields in this region as Manchester currently sits at 9.8%.**

3. Yorkshire

Yorkshire’s popular and picturesque countryside has frequently been voted top in the UK’s ‘best places to live’ guide thanks to the great lifestyle the nature, culture and festivals have to offer its inhabitants. In 2021 Yorkshire house prices jumped to their highest in decades and in 2022, research suggests prices are currently rising at a 15.1% rate, with a yield of 9.2%***

 

Greg Wilson, Founder of property insurance comparison site Quotezone.co.uk comments: “As property prices slow in London, buy-to-let landlords should look to areas like the North East, North West, and Yorkshire when trying to maximise their return on investments. These areas are booming, and as more people flock to the north, there’s little sign of it slowing down.

“Although the buy-to-let market has been gathering pace, it’s wise to beware of recent pressure from tax increases, interest rate spikes and EPC reforms – which will require some landlords to make costly energy efficient updates to their property.  This will contribute to a squeeze in landlord income, so it’s essential that they take all the necessary precautions such as insurance, to help avoid any additional unexpected costs. Policies that include ‘rent guarantee insurance’ can also cover them if a tenant stops paying their rent.”

 

Quotezone.co.uk helps around 3 million users every year find savings on everyday household bills and essentials, with over 400 providers across 60 different products including niche items such renters insurance, landlord insurance and buy-to-let insurance.

Insurance, Motoring, News

Auto Insurance: 6 Tips to Reduce Car Insurance Premium

Every driver who has driven a car knows how important and helpful car insurance is. But at the same time, they also get to know how expensive auto insurance can be when buying it. When something is essential, necessary, and costly, one should always try to find ways to save money.

It is shocking that while car insurance is such a ubiquitous thing, many people do not know how they can save money on car insurance premium rates. Regarding car insurance, you need to balance costs with coverage. This means that both low cost and great coverage are of equal importance. 

So are you among the ones paying a lot in car insurance premiums? Well, this article is for you. Here are some fantastic tips to help you reduce car insurance premium rates without compromising your coverage. Let’s get started. 

 

Compare and Select the Best

Before you take any steps to reduce your car insurance premium rates, you need to be in a suitable space. If you get a costly car insurance policy offering little coverage, you are overpaying for it. 

So the first thing to do here is to get the right policy. How to do that? By comparing all the different car insurance companies and what they are offering. Finding the best auto insurer is easier than you think. All you need to do is search for it specifically for your state. 

For example, if you live in Nevada, search for the best Nevada car insurance and compare their policies, coverage, reviews, features, and of course, the price. Make sure that price is not the only thing you are looking for since coverage quality is just as important. 

Once you have ensured that you got the best car insurance policy, we can move to fine-tuning to reduce your auto insurance premium rates. Let’s start with the fastest and most effective one. 

 

Insurance Deductibles

Almost every car insurance policy comes with a deductible. Insurance policies have a coverage limit, the maximum amount the insurer would pay when you claim the policy. 

But to avoid unnecessary claims, insurers set a deductible amount. This is a small amount of money (compared to the coverage limit) that the policyholder needs to pay before the rest of the coverage amount is produced by the insurer. 

So if you have a policy and claim it for car repairs that cost around $5,000, and the deductible is set to $1,000, you’ll have to pay this amount, and then the insurer would pay $4,000. 

You can reduce or increase the deductible amount directly affecting your insurance premium rates. If your deductibles are low (meaning you’ll pay less from your pocket in an insurance claim), your insurance premium rates will be high. 

It is a door that swings both ways. If your deductibles are high, your insurance premium rates will come down. But if you make an insurance claim, you’ll have to pay a lot from your pockets. 

You cannot claim your insurance if the cost of repairs is below your deductible amount. So increase your deductibles, and your premium rates will go down. But make sure you drive carefully as you’ll have to pay a lot if you get into an accident. 

 

Take Defensive Driving Course 

Many driving courses improve your standing with the insurer. Car insurance companies sometimes have their driving course if you want to qualify for discounts or low rates. 

Contact your insurer and ask if they have any course like this or if taking a defensive driving course would be accepted. If they do buy it, take the system, and you’ll get some sweet discounts on your insurance premium rates. 

 

Consider Pay-Per-Mile Insurance

If recently your driving has reduced, thanks to the pandemic, you can consider switching to pay-per-mile or usage-based insurance. Usage-based insurance can be much cheaper and better if your monthly mileage is low. 

If you drive occasionally and your monthly mileage is below 800 miles, then switch to usage-based car insurance (compare prices here as well and choose the most affordable one).

A base rate is first calculated by looking at your driving record and other factors. This base rate is multiplied by your monthly mileage to calculate your premium rates. The best thing is that if you do not drive that much, it can save hundreds of dollars in insurance bills. 

 

Clean Driving Record

If you want to save money on any auto insurance policy, having a clean driving record is imperative. A bad driving record with traffic violations, rash driving, etc., can hike your insurance rates and premium prices.

So avoid breaking traffic rules, drive under the speed limit, and avoid driving under the influence as it is one of the most impactful negative factors in your driving record. A clean driving record will keep your insurance premium rates low. 

 

Insurance Claims 

It might seem a little counterintuitive but making an insurance claim is only sometimes the smart move. For minor accidents that require minor repairs, it is better to pay from your own pockets than make an insurance claim. 

In case you want to make an insurance claim, you’ll have to pay the deductible first. An insurance claim will increase your car insurance rates in the future, no matter which insurer you choose. This increases your insurance premium rates too. 

So the best thing to do here (if you want to reduce car insurance premium rates) would be to avoid insurance claims when you can pay for the repairs yourself or get an accident forgiveness add-on so that your insurance rates stay low even after you get in an accident. 

 

Conclusion

With all these steps, your insurance premium rates will go down. Do note that if your rates are inflated due to poor driving records, or traffic violations/accidents, reducing the premium rates can be very difficult and time-consuming. 

The best option, in this case, would be to switch to a new company that offers the lowest prices. You’ll still pay a lot compared to others with good driving records, but at least it won’t be as expensive as it is now.