It is necessary to insure any vehicle on the road, be it a private vehicle, motor cycle or commercial vehicle. Insuring your vehicle does not just mean you are insuring against risk of damage or loss to another person. Insurance can also protect you against costs which could be incurred if you're the victim of a break in or malicious damage to your car.
Owning a car is an expensive business. You need upfront cash to buy it, a maintenance budget to keep it on the road tax money to keep it legal. And most people feel insurance is costly. According to a study launched by the Irish Insurance Federation this year, 76% of people surveyed believe car insurance is "very expensive".
Insurance quotes can vary drastically from company to company so remember to sit down with the Golden Pages, or get yourself online before you commit to any policy. Car insurance is calculated on a case-by-case basis - every case will have different factors which will increase or decrease the premium. An insurance quote is based on various factors such as driving experience, age, sex and type of licence.
Insurance companies base premiums on whether your occupation is "sedentary" or "non-sedentary", your age, sex, model of your car, others.
There are some factors which you should take into account to try cut your insurance cost.
Many policies now include a "protected no-claims bonus" and this is highly recommended by the Automobile Association. In these cases, you can pay a small extra on your premium which will give you once-off 'grace' on your no-claims bonus. If you have an accident, you can claim once without affecting your no-claims bonus.
Considering a no-claims bonus can mean a 50% reduction in cost over a five year insurance period, it may be worth paying a little extra in the premium for what it could save in the longer term.
Another question to ask is just how big is the "excess" on your policy. The excess is the amount up to which you are personally liable for any insurance claim before your insurance company pays. This varies considerably from policy to policy.
Paying your premium
If you already have a policy in force (perhaps for your home), give your insurer a call and say you're looking for a competitive car insurance quote. As an existing customer, you may be given preferential rates regarding your insurance and may be allowed a discount on your yearly premiums.
It may also be beneficial to let your insurer know of steps you have taken to protect your car against theft. You may have had an alarm fitted or you may have changed address since you first insured your car. Also, you may have passed you driver's test, which would reduce your premiums going forward.
