Optionally, you can take out a policy called “comprehensive cover” for complete protection for your car.

To work out the total cost of your insurance policy, your insurance company will use a number of risk factors. Each factor will have an affect on the cost of your policy. Part of this assessment will involve them calculating your risk of having an accident, and how much that accident could potentially cost them in damages. The higher the risk, the higher the premium you will pay.

Insurance Policy Risk Assessment

Some of the risk elements that your car insurance company will use to calculate your policy premium are

• how much your car is worth
• what safety aspects there are on your car (e.g. immobiliser, alarm, air bags, anti-lock braking system etc.)
• what type of policy you require
• whether you have any no claims discount or any other bonuses
• how many miles you will drive in a given year
• whether you have any previous driving convictions
• how many years you have held your driving licence for
• whether you are male or female

Once all of these factors have been taken into account, your premium is then calculated. Normally, there is a starting figure per car, per year that every policy is based upon without taking any other factors into account.

Once the base premium has been set, the other risk factors will then be applied to calculate your final policy price. As an example, if you drive a high performance car or have an excessively high annual mileage (taxi divers, for example), these factors will have an impact on your premium price and it will be increased by a certain rate.

If your vehicle is very old, it is considered to be more dangerous (as more could potentially go wrong with it), and your rate will increase. The more previously recorded accidents you have been involved in, the more your policy will cost you. Each risk factor that can be applied to your policy will have an adverse effect. If you happen to be a young male with a short driving history, this will also increase your preimum rate.

Discounts

As well as factors that will increase your policy cost, there are also other factors that can help reduce the overall insurance premium price. For example, if you drive a very small number of miles per year (well below the estimated average), your insurance company may allow a discount. Again, the principle is that the less mileage you do, the less chance there is of you having an accident. Often, you do not need to prove this low mileage although your insurer may impose an additional charge if you exceed the miles you have estimated and your vehicle is involved in an accident.

The longer your driving history without accidents or insurance claims, the more discount you will be offered by your insurance company.

In summary, the most effective way to reduce your car insurance premium is to do some investigation and discover where the better bargains are. The advice is to try and maintain a good clean driving record, drive as safely as you are able to, and select dependable cars that are not recognised for their power and performance

There are many different factors that can contribute to a high-risk driver classification.

However, your driving record is the most important factor in determining your risk status. If you have been involved in several accidents over the course of a year or within two to three years, these incidents will negatively affect your record even if they were not your fault. Being involved in any accident can deem you a reckless driver with a penchant for getting into dangerous situations. Also, if you have received multiple speeding tickets, you are also increasing your risk of getting into car accidents. You may be labeled a high-risk driver just by the number of speeding tickets you have received.

There are also several personal factors that contributed to the high-risk label. Unfortunately, many of these factors are beyond your control. Men are typically deemed a higher risk than women, and those who live in the city are considered higher risk than those who live in the country. If you are a city dweller, you will probably pay higher car insurance premiums than if you live in the suburbs or in a rural area. Also, drivers with newer cars are charged higher premiums than those with older automobiles.

Unfortunately, even your credit history can affect your car insurance rating. Those with low credit ratings are usually charged higher premiums than those with better credit scores. Whether or not you have been covered by car insurance continuously is also a factor. If there are gaps in your coverage, they will assume that you have had periods of uninsured driving. Because driving without insurance is very unsafe and also very illegal, insurance companies take this into consideration when considering your rate.

Though it can take several years of clean driving to erase the high-risk driver label, it can still be done. Three years is the industry standard for reassessing a driver’s safety standing. If you have a clean record for a three-year period, you can work your way back to the benefits of lower premiums. However, three years’ worth of high premiums can really add up over time. If you are a high-risk driver, there are still ways to lower your insurance payments. With a little research, you can reduce your payments by a fair amount.

There are many car insurance companies that offer free quotes online. Rather than meeting with salespeople or playing phone tag with agents, Internet sites will give you a quote in minutes. This makes comparison-shopping easier than ever. There are even websites that will find a list of quotes for you. Sites like Netquote.com allow you to enter all of your information one time rather than repeating the process for every insurance company you investigate. Netquote will generate a list of rates organized in an easy to read fashion. This process may take a few days, but the results are typically worth it.

Working toward a clean driving record is the best way to ensure that you will get the best car insurance rates. Avoid congested areas whenever possible, and be sure to slow down in reduced speed zones. Be aware of your surroundings and never speed, and you will be on your way to a successful reduction in your rates.

Motorists could be forgiven for not getting other quotes, it used to be a very laborious exercise involving long waits while getting routed through the call centre, and boring repetition of facts to sales advisors. Now, thanks to the internet, it’s all a lot more simple. Car insurers also offer extra discounts to people who buy online.

However, you need to consider the quality of the policy, not just the price:

• Check that your low quotation is not due to an extremely high excess.
• Check that you will get a courtesy car if your car needs to be taken in for repairs.
• Check that legal insurance cover is included, if you want it, and automatic windscreen replacement.
• Find out if there is an accident help line in case of an emergency.

It’s a good idea to ring the insurer direct to talk through the policy in detail before signing up online.

Money saving tips – recommended!

You can get a quote with over 40 car insurers if you input your details into a good car insurance broker’s website. You’ll only need to give your details once. Call the insurer with the quotation to check exactly what is and isn’t covered.

If you have a garage, then you’ll save by keeping your car there overnight. You’ll also make savings if you can keep your car on a driveway. This is because there is more chance your car being broken into or vandalised if it’s kept on the road.

Give your insurer an accurate picture of how many miles you do each year – you will save if you travel less.

Some occupations, like being a landlord, journalist or professional footballer (if only) attract higher premiums. You can save money if you work in finance or the civil service.

Get married! Men under 30 pay more if they’re not married – it’s just the excuse your girlfriend is looking for!

Under 25′s pay more, but you can get lower premiums if can put a driver over the age of 25 with a good driving record on your policy as a named driver. That person must be under 60 though, as premiums rise again at that age.

Agreeing to higher excess (the average cost is £100) will help lower your premiums.

If your car is not of a high value, you could get third party cover and make quite a saving compared to fully comprehensive insurance.

Pay as you go insurance is a new option for 18-21 year olds. It’s a recent development introduced by Norwich Union, in which you pay a unit cost per mile. The cost per mile is more between 11pm and 6am. You pay an initial fee of £199 to have a Global Positioning System fitted to your car, and then it transmits details of your mileage direct to Norwich Union. They send you a monthly invoice and you pay for the miles you’ve done!

Taking Pass Plus lessons to improve your driving abilities could save you around a third on your premiums. They cost £15 – £30 an hour and cover driving at night, in busy rush hour jams and fast motorway driving. You can find out more at http://www.passplus.org.uk/ . You can also improve your driving skills and make insurance savings with the Institute of Advanced Motorists ( http://www.iam.org.uk/ ).

Find out the insurance group of a car before you make the purchase. There are twenty insurance groups – the slower and less desirable the car (to criminals) then the lower the rating. You could make considerable savings by choosing a car in a lower insurance group.

If you want a high spec or performance car then you can expect to pay a lot more on your insurance. They’re a lot more likely to be stolen or involved in an accident. Making the sensible choice might be a bit boring, but it will be a lot cheaper.

Watch your speed. Most insurance companies will let you get away with a single fixed penalty fine but if you repeat the offence then your premiums will rocket.

Protect your no claims discount as soon as you can (usually after four years). It costs a bit extra but it’s well worth it.

Satellite navigation in your car will lower your premiums. Insurers have found that people concentrate more on their driving and less on trying to find their way, which means less chance of having an accident.

It’s a good idea to have an engine immobiliser or alarm fitted not just because it could help you keep hold of your car, it will also make you a saving of 5-8%.

If there’s two or more cars in the household, get them on the same policy to get a good discount.

• Consolidating policies

By insuring a number of vehicles with the same insurer, or by trying to take out home and life insurance through your car insurer, you may be able to secure a ‘bulk buy’ discount.

• Location

A big influence on the cost of your car insurance is where you live. The chance of your car being broken into or stolen is a key concern for the insurer. More urban areas traditionally facing greater risk of theft and therefore tend to be more expensive than countryside locations.

• Excess

By agreeing to pay a greater excess on each claim you can reduce your car insurance premiums. This is because you are reducing the liability of the insurer and therefore in return they are able to offer you a lower premium.

• Your Vehicle

The cheaper and slower your vehicle the lower your premiums are likely to be. If you are looking to buy a new vehicle make sure you fully consider the cost of insurance – you may be able to buy the car but can you afford to run it?

• Annual Mileage

You can control your insurance premiums by restricting your annual mileage. However, be aware that if you exceed the restricted number of miles you’ll then become uninsured!

• Parking

Where you park your vehicle overnight is also very important to the insurers. If it is kept in a locked garage, you should be offered a lower premium than if you leave it unattended in the street.

• Security

Security devices that prevent or hinder theft may also reduce your premium. Common examples include alarms and immobilisers, however, be aware that as we improve the quality of our security devices the thieves just become better at bypassing them.

• No Claims Discount

Save up your no claims discount by avoiding making small claims upon your policy. After a set number of years, 4 or 5 typically, you’ll often be offered the option to pay an additional small premium to protect your no claims bonus. This can prove very helpful if you subsequently end up having an accident.

• Advanced Driving Skills

By taking an advanced driving course you may also be able to reduce your premiums. The Institute for Advanced Motorists and the Royal Society for Prevention of Accidents each offer membership which provides you with discounts for both the cost of driving courses and your car insurance premiums.

Two key variables NOT within the policyholder’s control.

• Your Gender

Women are statistically less likely to have an accident and, if they do, it’s less likely to be serious. Because of these statistics women benefit from lower premiums. It is also worth noting that if you represent one half of a couple you should consider having the female as the primary driver with the male as the secondary driver.

• Your Age

The more mature you are, the less likely you are to make a claim. Obviously, your previous driving history will have a huge impact on this, but the more years you drive without an accident, the lower your premium will be. As a result insurance companies charge lower premiums for more mature drivers.

In fact one in twenty motorists regularly drive without insurance.

It’s therefore not perhaps surprising that, one in ten of all motorists have been involved in accidents with uninsured drivers. The question is what to do if you’re involved in an accident with one? At the time of the accident you’re unlikely to realise that the other driver is uninsured so you’ll have to react in the normal way. Take a note of the other car’s make, model and registration number. Also note the other driver’s name and address – but whether he’ll give you his correct details is perhaps unlikely! Nevertheless, always record what the other driver says.

Unless you have this information you’ll have no leg to stand on when it comes to getting some of your money back. Also take notes about the damage to the other car and the accident scene. Remember to note road markings, road signs, light and weather conditions and whether the other car had its lights on – in fact as much detail as possible.

Then, if you’re lucky enough to have an independent witness, get their full contact details. And if you happen to have a camera in the car, take lots of pictures – and try and get one with the other driver clearly in the picture. This is where your camera-phone comes in handy! The police might like that one!

If your car insurance policy is comprehensive, your insurer will pay for your car to be repaired but you could lose your no claims discount unless you’ve paid to protect it. But then there’s the issue of your excess payment – that’s the first part of the repair cost you have to pay for. You’ll have to pay that unless you’re lucky enough to have a policy that waives the excess payment if you’re hit by an uninsured driver.

For those of you with third party car insurance, you’re in for a hard time. Your insurer won’t pay for your repairs and, as the other driver is uninsured, you’re not going to get any money off him unless you can trace him and succeed in a court action. Even then, there’s no guarantee that he’ll pay up! Your only guaranteed solution is to make a compensation claim to the Motor Insurers’ Bureau – but you’ll still have to pay the first £300 of the claim.

The Motor Insurers’ Bureau insists that you have the other drivers’ car registration number and you must first report the accident to the police. Always ask the police for a copy of their accident report as the Bureau is likely to ask to see it. The Bureau’s telephone number is 01908 671681 or you can email them on enquiries@mib.org.uk.

At the moment the UK Law is being amended to crackdown on uninsured drivers. And not before time. Anyone keeping, not just driving, an uninsured vehicle now faces a fixed £100 fine and can also have their car seized and crushed. Currently the average fine for driving without insurance is just £170 and that’s hardly a punishment when car insurance costs many times more. Losing the car plus a fine of £100 is much more realistic. Let’s hope that the courts fully implement the crushing sanction!

A police spokesman said recently, “Uninsured drivers are often guilty of many other driving related offences, such as having no driving licence or MOT certificate. We’re doing everything in our power to get these dangerous and illegal drivers off our roads”.

Any steps that can be taken to keep our roads safer is very welcome.

Other related stories

• Uninsured driving on rise in the UK
• Over 1 Million Motorists Admit to Uninsured Driving

Every vehicle on the road must have insurance. The insurance is there to cover any liabilities you may incur in the event of an accident.

Let’s take an example…

If you accidentally hit another vehicle in front of you (perhaps at traffic lights where you do not stop in time), and you damage the vehicle in front, you are liable to pay for the cost of repairing that vehicle. If you did not have insurance, you would have to pay the other driver for all of the repair costs out of your own money. If you could not afford the repairs, the other driver would potentailly lose out, or have to sue you to recover the repair.

With sufficient car insurance cover, your insurance company pays for the repairs from all the premiums they take from all their policyholders.

Car insurance companies gamble on the fact that if they have 500,000 policyholders, statistically, only a small number of them will have or be involved in an accident. Therefore, from the pool of money they receive in premiums, only a percentage of that amount will be used to settle insurance claims.

Sabre Insurance offers all levels of car insurance premium.

There are 3 main levels of car insurance

1) Fully comprehensive car insurance

This type of car insurance covers you, your car and any other vehicle that you may be involved in an accident with. In recent years, this is the most common type of car insurance taken up.

2) Third party, fire and theft car insurance

Third party, fire and theft car insurance covers any person or vehicle that you may be involved in an accident with, but does not cover your own vehicle or personal damages (if the accident is your fault). This type of car insurance does cover your vehicle against being stolen or burnt. The premiums for this type of car insurance are usually cheaper than those with fully comprehehnsive car insurance.

3) Third party only car insurance

This level of car insurance is the cheapest form of car insurance, and covers only any other vehicle or person involved in an accident.

Sabre Insurance offers all levels of car insurance premium.

However, because it is the cheapest car insurance, it has disadvantages. Third party car insurance, as the name suggests, only covers the third party and their vehicle in the event of an accident or incident. The policy holders own vehicle is not covered. This obviously exposes the policy holder to more risk, as damages to their own vehicle are their own responsibility.

Sabre Insurance offers all levels of car insurance premium.

Sabre Insurance specialises in non standard insurance policies, which includes high performance cars, taxis, and other high risk categories like young drivers and new drivers. As such a specialiast motor insurer, they can offer you reasonable premiums for your high performance car.

Sabre underwrites only motor insurance, including private cars, taxis and individual commercial vehicles, entirely through intermediaries.

Based in Dorking, Surrey, Sabre was formed in 1982 and operated as an underwriting agency, until the launch of Sabre Insurance Company in 1991. The business was acquired by General Accident in 1996 and, following a series of mergers with Commercial Union and Norwich Union, the company was sold to BDML Group, an independent company specialising in the insurance sector.

In 2005 BDML Group sold its broking subsidiary, BDML Connect, to Capita and changed its name to Binomial Group Limited. Sabre is a wholly owned subsidiary of Binomial Group Limited.