Car Modifiers Beware - Your Insurance Premiums Could Rocket
- Modifying your car could push up your insurance premiums by 44 per cent
- Motorists risk invalidating their insurance if they fail to inform their insurer of changes
- Shopping around for your car insurance can save you GBP280 a year, says moneysupermarket.com
17 May, 2011, 15:00 BST
CHESTER, England, May 17, 2011 /PRNewswire/ -- Splashing out on alloy wheels or updating your car with accessories such as a car phone could cause the cost of cover to skyrocket, according to moneysupermarket.com (http://www.moneysupermarket.com/).
Research by Britain's number one comparison site found making modifications to a vehicle can dramatically alter the cost of insurance - in one example premiums increased by 44 per cent when a built-in car phone was added to a vehicle.(1) It was a similar story when making other modifications; upgrading to alloy wheels or having a complete body kit fitted could see an increase of 62 per cent and 101 per cent respectively.(2)
Peter Harrison, car insurance expert at moneysupermarket.com (http://www.moneysupermarket.com/), said: "Motorists need to be aware that even making a small modification to a vehicle can dramatically alter the cost of the premium you will pay on your insurance. With premiums potentially costing more than 100 per cent more, motorists should consider whether the modification is really worth the extra insurance expense as well as the cost of the actual work done to modify the car.
"However, it is worse if motorists make any substantial changes to their car and fail to inform their insurer, as they risk invalidating their insurance completely. It is essential drivers check the small print of their insurance policy to understand exactly what they are covered for, as many of the more common modifications such as alloy wheels may not be covered in a standard policy. If you do decide to modify your car, check before hand what the cost of cover will be with your insurer and also shop around to see if you can get a better deal on your car insurance elsewhere that covers your modification."
Motorists also risk invalidating their insurance if they fail to inform their provider about a change of address or change in job. Further research by moneysupermarket.com found that changing jobs can also affect the cost of premiums, with a children's entertainer paying more than 48 per cent more for their insurance in comparison to a teacher. Similarly, a bus driver will find their insurance premiums are slightly cheaper.(3)
Peter Harrison continued: "It is essential any change in circumstance is communicated to your provider otherwise you risk invalidating your insurance policy. Motorists should take the time to fully understand the small print of their insurance policy to ensure they are not caught out when trying to make a claim. It only takes a few minutes to make sure you really do have the best value policy to suit your needs. By shopping around for the best deal you can ensure you aren't paying over the odds for your car insurance. The average saving using moneysupermarket.com is GBP280, so I urge everyone to do their research and ensure they are getting the best deal."
Top tips for reducing the cost of car insurance:
- Shop around - This is one of the easiest ways to save money. Don't assume that your current provider is giving you the best renewal quote; look at other insurers using the moneysupermarket.com car insurance comparison tool and see if you can save.
- Buy online - Many car insurers offer discounts to customers that buy online.
- Modifying your car - if you do intend to modify your vehicle check with the insurer how much your insurance would be once the work was completed and also shop around to see if the insurance with the modification can be found at a better price elsewhere.
- Reduce your mileage - When applying for insurance, you estimate the number of miles you'll do each year. If you aren't travelling much then you'll usually pay less. That means that if you car share with a colleague or decide to take the train a couple of times a week, you can bring down the price.
- Keep it safe - Insurers look at the risk every driver presents, so you'll get a better deal if you can reduce that risk. By keeping the car off the road at night in a garage or on a drive you make it safer, meaning your premiums will come down.
- Car security - Make sure you have an alarm and immobiliser.
- Drive a car with a smaller engine - If you're struggling to pay your insurance then give some thought to the car you're driving. The bigger and faster the vehicle, the more it will cost to insure.
- Up the excess - Agreeing to pay a higher excess, such as GBP500 instead of GBP100, can reduce your premiums. Don't forget that this is what you will need to pay in the event of a claim, so be sure you can afford it.
- Add an older driver - If you have a partner or parent who is more experienced behind the wheel, adding them to the policy can sometimes reduce what you pay. Whatever you do, don't make them the named driver, though. This is called fronting and could invalidate your insurance.
- Ensure it's adequate - As you look for the lowest price, don't be tempted to scrap things you really need. It might cost more to have a courtesy car or legal fees paid, but if you need it then include it. Skipping extras that you can't do without will be a false economy if you do need to claim.
Notes to Editors:
(1) Top ten car insurance quotes:
Provider Annual Annual Premium Annual Annual
Premium (with complete Premium Premium
body kit) (with (with car
alloy phone)
wheels)
esure GBP402.55 N/A N/A N/A
Hastings Essential GBP423.51 N/A N/A N/A
Sheilas' Wheels GBP426.61 N/A N/A N/A
insure.co.uk GBP451.55 N/A N/A N/A
Renew Insurance GBP451.59 N/A N/A N/A
AXA GBP487.80 N/A GBP487.80 GBP487.80
Swiftcover GBP487.95 N/A N/A N/A
Likewise GBP496.46 N/A N/A N/A
Endsleigh GBP508.27 GBP1,246.16 GBP827.43 GBP721.88
Your Cover GBP536.32 N/A N/A N/A
Average GBP467.26 GBP1,246.16 GBP657.62 GBP604.84
Based on male teacher aged 30, driving a Ford Fiesta 1.2.5 years NCD
Top ten car insurance quotes (with car modifications):
Provider Annual Provider Annual
Premium Premium
(with car (with
phone) alloy
wheels)
AXA GBP487.80 AXA GBP487.80
Admiral GBP660.83 Admiral GBP683.09
elephant.co.uk GBP662.95 elephant.co.uk GBP685.21
the insurance factory GBP674.53 Bell GBP696.87
Bell GBP674.61 Asda GBP773.76
Post Office GBP706.89 yesinsurance.co.uk GBP872.23
Halifax GBP713.52 Performance Direct GBP820.52
ibuyeco GBP715.67 Endsleigh GBP827.43
Endsleigh GBP721.88 grove & dean GBP857.52
Budget GBP730.55 ecarinsurance.co.uk GBP862.46
Average GBP674.92 Average GBP756.69
(continued)
Provider Provider Annual
Premium
(with
complete
body kit)
AXA Admiral GBP695.81
Admiral elephant.co.uk GBP697.93
elephant.co.uk Bell GBP709.59
the insurance factory Performance Direct GBP920.59
Bell grove & dean GBP957.59
Post Office mypolicy GBP1,003.48
Halifax yesinsurance.co.uk GBP1,085.12
ibuyeco ibuyeco GBP1,094.03
Endsleigh Halifax GBP1,106.85
Budget youchooseinsurance GBP1,114.13
Average GBP938.51
Based on male teacher aged 30, driving a Ford Fiesta 1.2.5 years NCD
The average of the top ten insurance premiums is GBP467.26, compared to the average of the top ten premiums for a vehicle with a car phone which is GBP674.92. The difference is GBP207.66, therefore 44% increase.
(2) The average of the top ten insurance premiums is GBP467.26, compared to the average of the top ten premiums for a vehicle with alloy wheels which is GBP756.69. The difference is GBP289.43, therefore 612% increase.
The average of the top ten insurance premiums is GBP467.26 compared to the average of the top ten premiums for a vehicle with a complete body kit which is GBP938.51. The difference is GBP471.25, therefore 101% increase.
(3) Top ten car insurance quotes for different professions:
Provider Annual Annual Annual Annual
Premium Premium Premium Premium
(Teacher) (Children's (Bus (Publican)
Entertainer) Driver)
esure GBP402.55 n/a GBP402.55 GBP402.55
Hastings Essential GBP423.51 n/a GBP400.66 GBP644.67
Sheilas' Wheels GBP426.61 n/a GBP426.61 GBP426.61
insure.co.uk GBP451.55 GBP897.96 GBP427.17 GBP687.13
Renew Insurance GBP451.59 GBP898.05 GBP427.21 GBP687.13
AXA GBP487.80 n/a GBP515.93 n/a
Swiftcover GBP487.95 GBP533.97 GBP488.92 GBP524.97
Likewise GBP496.46 GBP942.91 GBP472.03 GBP732.02
Endsleigh GBP508.27 GBP1,186.69 GBP532.28 GBP628.95
Your Cover GBP536.32 n/a GBP455.95 n/a
Average GBP467.26 GBP891.92 GBP454.93 GBP591.75
Sourced by http://www.moneysupermarket.com/ 05.05.201
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SOURCE moneysupermarket.com