How To Reduce Your Family Car Insurance Premiums
If you are a family with children in their late teens (i.e. 17,18,19) or early twenties (20-25), then a dilemma you no doubt have already had to face if how to reduce your family car insurance premiums. The following are a few tips on how you may achieve this:
If you can afford it, you should have two cars. One car can be nice, and have a relatively good engine size. Under no circumstances should the children be allowed to drive this car! Moreover, you should limit the named drivers who can drive this car to people, preferable, over 30.
The second car you have should be a small car in a lower insurance group – say a 1.3 or lower. This car can be your family round-around car and this car you can either insure in the names of the drivers in your family or with a blanket insurance policy that allows anyone to drive the car. Don’t be too surprised if the insurance for the second car is almost (if not more than) the first car!
A number of insurance providers now offer attractive family car insurance packages online. If you cannot afford to have two cars, the discounts you can get online can make it attractive to let your young children drive your car. Be careful, however, to read the policy and make sure that the children are not prohibited from driving the car (as some ‘family’ policies do prohibit the car from being driven by anyone under the age of 25).
Aside from the engine size of your car, one of the biggest factors in determining how much insurance you’ll have to pay is the amount of excess you agree to. If you agree to increase the excess payable, which is the sum you agree to pay before the insurance company is required to pay, then your insurance premiums should come down. So, why not talk with the insurance policy provider about increasing your excess so that your children can drive the family car without the insurance premiums costing you and arm-and-a-leg.
Finally, some car insurance providers now offer pay per mile car insurance. Essentially, with this type of car insurance you pay per every mile driven (hence the name). So, if you want to include your children on your car insurance, but don’t want it to be overly expensive, why not consider insuring them on a pay per mile basis and then limiting their driving.
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