Wednesday, 10 August 2011

Comparing The Forex With Investing In Insurance

Investing in Forex is more risky but the gains that can be achieved are a lot larger than insurance, although insurance is a very good long term investment.

While there are innumerable kinds of life insurance available, they can be simplified into two general types: those that insure against death only and those that not only insure against death but make a provision for savings in addition to insuring. The first type is called term insurance.

It pays off only in the event of death. While it is worth nothing to the individual himself, since he never gets his hands on any of the money that went to pay the premiums, it does generally provide the maximum death benefits per dollar of premiums at the younger ages. Its sole purpose is to insure against death. As its name implies, it is written for a term—1, 5, 10, 20, 25 or 30 years—and if the term expires before the insured dies, that is that. There are no more premiums due and he gets nothing from the insurance company except the right to renew the policy for a longer term and/or the right to convert the policy to permanent insurance without a medical examination.

Policies other than term insurance cost more than term insurance initially and the additional premium provides essentially one thing savings for the person insured. Now the main question to answer from an investor's point of view is, "What do I get for this additional premium in the way of a return on my money?"

If a ten-year term policy is purchased the average net cost per $1,000 is $3.91 per year, and if a 20-year term policy is purchased the average net cost is $3.82. It gradually goes down according to the length of the policy, but if term insurance were bought each year, for just one year, the annual rate would be higher with each renewal since the older a person is the greater the likelihood of his death.

If he waits until he gets to age 55 the cost of term insurance rises tremendously. A five-year term policy at age 55 costs $21.85 per $1,000 and a ten-year policy $23.26. Term insurance usually may be maintained only until the insured is age 65. Thus, if a man kept term insurance to age 65, but died at age 66, his beneficiaries would get nothing and all of the premiums he had paid for this insurance would go down the drain.

These policies all provide nothing in the way of savings and there is no return on your money that you, the insured, will ever get. Your beneficiaries will get the face of the policy at your demise.

In contrast to term insurance there is permanent insurance. This is insurance that may be kept as long as the insured wishes to keep it. If the insured lives, he has built up a substantial cash value in his policy which he may take in cash or as income or which he may leave with the insurance company as "paid up" insurance.

The most popular form of permanent life insurance is convertible whole life insurance, sometimes called ordinary life or straight life.

Convertible life requires the lowest premium of all permanent insurance plans. Premiums may be paid on this policy as long as the insured lives or for a shorter period of time depending upon the objective of the insured.

Permanent insurance has a level annual premium for the duration of the premium paying period. The annual premiums in the early policy years are in excess of the actual premium needed to cover the risk. The excess premium is called the reserve and it is this reserve, together with interest earned on the reserve plus future earnings, which provide the cash needed to pay death claims in the later years.

If we consider that the 20-year term rate is the pure cost of insurance, and that the difference between this rate and the straight life rate represents the savings element of his premiums, you determine this savings element by subtracting $3.82 from $17.70, which equals $13.88. Over 20 years this savings element amounts to $277.60. For this total of $277.60 put in in premiums, $403.94 was collected—a profit of $126.34 over 20 years, or $6.31 per year.

The $277.60 was not put in all at once, but over a period of 20 years. Nothing was invested at the beginning of the 20-year period, and in the twentieth year the whole sum was invested, so that the average investment for the period was halfway between nothing and $277.60—$138.80. The return on this figure is the true return, and $6.31 per year on $138.80 is a little under 5%.

Let us consider the Retirement Income policy at 65, bought by a person 25 years old. Over a period of 40 years, he puts in $30.92, the annual premium, times 40, or $1,236.80. If the average net cost of the pure insurance feature is assumed at $7.79 per annum and the cost is subtracted from the total annual premium of $30.92, we get the investment in the savings element of the insurance, $23.13 times 40, or $925.20. For these invested savings the insured gets back $2,326.81 at age 65-40 years later-a profit of $1,401.61.

If we use the same reasoning in regard to the average amount invested over the period (one half of $925.20), we arrive at an investment of $462.60. The profit or return per year is determined by dividing the total profit of $1,401.61 by 40 years and we get $35 per year. This $35 represents a return on the investment of $462.60, or 7½% per year.

How good an investment is this $462.60 that grows to $2,326.81 in 40 years? It is almost identical with an investment of $462.60 which returns 4% per year if the 4% is left in the investment to be compounded annually. The discrepancy between the 7½% per year and the 4% is explained by compounding.

The 4% compounded is not a bad yield. It is roughly equal to the return of an insured building and loan association in the year 1962, but not as good as the better yielding ones.

Now the characteristic of the Retirement Income policy is that premium payments end at age 65. The insured is now entitled to $2,326.81 if he left his dividends in.

Further, the insured can have his $1,597 (due him if he took his dividends out) paid to him and/or his heirs at the rate of about $10.00 per month for 157 months (a full refund). If he is still living at the end of the 157 months, the insured would continue to receive $10.00 per month for the balance of his lifetime.

If desired, an alternate amount or alternate type of annuity could be selected.

In addition to the guaranteed amounts, there would, of course, be dividend income payable each month in accordance with the company practice. The present income dividend is about 10% extra per month.

All of the above income would be tax-favored as compared to ordinary investment income.

The income or annuity return per $1,000 of accumulated cash in the insurance policy is guaranteed by contract as of the date of issue for future delivery. It is interesting to note that the cost of an annuity at 65 has been increased seven times in the last 20 years as the science of geriatrics has prolonged life.

There is one type of policy which represents the savings element alone and does not provide the insurance element. This is the annuity. You make a cash payment early in life, or periodic payments throughout your life, in order to get an income when you retire or pass a certain age.

At age 25, for an annual premium of $100 for 40 years, you can get (a) $8,201.47 in cash at age 65 or (b) monthly payments of $51.34 for the rest of your life.

You have invested in 40 years 40 times $100 or $4,000, and at age 65 this has grown to $8,201.47. It has better than doubled.

To find the average annual return, we determine the profit ($8,201.47 less $4,000) which equals $4,201.47 and divide this by 40 to get an annual profit of $105.

The average investment is halfway between zero and $4,000 and is equal to $2,000. The annual return is thus $105 divided by $2,000, or 5¼%. This represents considerably less than 4% compounded annually.

If the option of $51.34 per month is selected instead of the sum total of $8,201.47, it takes between 13 and 14 years to exhaust the total, and if you live longer than this number of years, you have come out ahead.

Most other policies provide savings, and the return on these savings is what we are concerned with here. While the yield on the savings is low it must be pointed out that by entering into an insurance contract the insured is forced to save what he might otherwise spend. A second advantage in buying policies other than term policies is that if the insured falls on hard times these policies are worth something in cash to help tide him over; and if he can't keep up the premiums there is a cash reserve to pay premiums for awhile. If term insurance premiums cannot be met the policy lapses.

One insurance company took what it considered to be a typical year as regards death claims and determined what the insured's family got back in relation to what was paid. It determined that the average insured who was paid off that year collected $1.75 for every $1.00 put into premiums, and the average number of years each policy had been in force at the time of death was 22.6. The return was 4% per year, and the insurance company points out that the 4% return was tax free in that no income tax was taken out either as the policy went along or when final payment was made. This 4% equals 8% in income for a person in the 50% tax bracket.

The return on the savings element of life insurance can be determined by reference to the attached table. The major types of policy have been compared for ages 25, 40 and 55 as to annual premium, value of the policy in cash at different ages and monthly payments which can be received from age 65 to the end of one's life.

Two of the greatest benefits of life insurance depend on: (1) inheritance taxes and (2) the uncertainty as to when the insured will die. These factors are not related directly to return on investment but cannot be minimized in any consideration of life insurance.

Long term it is very difficult to lose money if not impossible and the returns can be good.

The Forex is more risky but you can limit your risk by using good Forex software.

Choosing Between Term And Universal Life Insurance

Surely anyone who has been in the market to purchase a life insurance policy has run into the confusing array of plans available. The following will give you a brief summary on two of the most popular life insurance coverage choices: Choosing between term or universal life.

Term Life Insurance

The first thing to understand is that term life insurance is known as “pure” insurance. That means that term life is straight life insurance and does not build any cash value. You can buy this coverage for a certain amount of years, known as the “term,” and once the term is over you may either renew the policy for another set amount of time or simply walk away. The advantages of term life insurance is that it is the least expensive life insurance policy because it serves no other purpose other than to give your beneficiaries peace of mind knowing they are financially protected in the event of your untimely death. It is basic and to the point. To get more information on term life insurance visit

Universal Life Insurance

Universal life insurance is a type of permanent life insurance. Permanent life insurance policies offer death benefits and a "savings account." Unlike term life policies, permanent policies build cash value.  The advantage of buying a permanent type of life insurance is that if the insured outlives the initially established term, they will be reimbursed some of--often more than--the amount set on the original premium. To learn more about universal life insurance visit

In addition, universal life insurance policies are known as the flexible policy because you are allowed to vary your life insurance premium payments as well as adjust the face value of your coverage. Keep in mind that you must maintain enough premium payments so that the cash value on your account does not drop below the charges against your account. The more you put into this account the higher your cash value will be for future use. Universal life policies will have higher life insurance rates because it also serves as an investment vehicle.

Choosing Between Term and Universal Life Insurance?

There are a few things to consider when deciding to choose between term life insurance and a universal or permanent life insurance policy. For example, term life insurance is really a good choice for those who may have limited funds and not many responsibilities. Usually younger people choose term life insurance because they have a lower risk of dying in the immediate future. Younger investors feel that they can have the best of both worlds: coverage for themselves and their young families while also being able to use the money they save on cheaper insurance for other investments or assets.

While term life insurance seems to be a relatively short period solution, permanent or universal life insurance coverage is more advantageous for those who have built more assets and accumulated more money. A universal life insurance policy can be tapped into as a retirement account to allow for “golden years” enjoyment.

The best thing to do is contact your financial advisor for current life insurance rates on both term and universal life. Your financial advisor can also assist you in deciding which life insurance policy would best suit your current needs as well as forecast what might be needed in the future. To read more about term life insurance and universal life insurance go to

Car Accidents Claims And Insurance

If you are not sure of your rights in a car accident that you have been involved in, you should consider consulting the best lawyer possible. You can rest assured that the insurance company will have lawyers to represent them.

Your claim is very important and you should not take it for granted especially if you have encountered a serious injury in a car accident. Claims vary differently depending on the type of injuries sustained. Severe injuries are generally classed as: losing an arm, fractured bones or losing any part of the body.

If you have been hospitalized for a long period of time, you should be entitled to a higher level of compensation. If you are unable to work because of disabilities you may be eligible for a lifelong compensation. The compensation for a disabled person will normally take into account the beneficiaries of the victim. He will also get the income he earns in a year.

Sometimes, being handicapped allows for the full compensation in filing for a claim. In order to get the compensation, you must choose the best lawyer who will not take advantage of you and your rights as a victim. Sometimes, the law takes advantage of the disabled person and of those who are not aware of the rules.

Claims and compensation will consider the nature and the duration of injuries. If you have recovered from the injuries in days, you will get a smaller compensation compared to severe injuries which might take a month or longer in the hospital to heal. You should not worry about the expenses because you will rightfully get your compensation as long as the case is adjudicated. Pain, suffering, and disability are all measured in determining a rightful compensation.

In considering your car’s insurance, make sure that you know what your insurance covers. Dealing with the accident requires investigation to know who is at fault, and to find out if the other party is required to give compensation to the victim. An accident lawyer is perfect for this situation. You might not be familiar with the rules of filing for a claim, but a lawyer will be.

The law requires car insurance intended for public use. So it is better to find out if your car is insured and the consequences that you may face should you have an accident. It is important to make sure that the statements that you are going to give to your insurance company are correct so that the claim will be handled accordingly.

If you don’t want to face these complications and procedures make sure that you are confident in your driving and knowledge. Car accidents are not be easy to deal with because they can be quite complicated. What is important is that you be given the right compensation for anything you have lost.

Buying Long Term Care Insurance

There was a time when buying long term care insurance was fairly easy and pretty cut and dry. Times have changed for this particular type of insurance and anyone considering buying it would do well to spend some time investigating carriers and coverage levels as well as premiums.

Generally speaking, the cost for a nursing home resident today is about $71,000 annually, which works out to around $200 a day. The cost for non-resident, assisted living comes in at around $32,000 a year, or $88 dollars a day. In both cases, that is a lot of money over the course of time.

The major reason people want to buy long term care policies is so they can protect their assets in the event they need to pay for nursing home occupancy, assisted living expenses, or home care expenses. Those who do not have this type of insurance are often forced to liquidate their assets in order to get the care they need. For many people this means selling the home, cashing in on retirement funds, and depleting savings accounts.

On average, if you have more than $300,000 in personal assets, you may want to look into long term care insurance as a means of protecting yourself.

The age in which you purchase these types of policies is important. A person who is fifty-years-old may pay $2,000 for a policy, while a seventy-year-old may end up paying as much as $8,000 or more for the same policy.

Your physical condition is also important. If you suffer from certain forms of mental conditions such as schizophrenia or dementia, or if you are wheelchair bound, you may not even be able to get coverage. All in all, the younger you are when you get the policy and the better your health, the lower your premiums will be.
The truth is there are fewer companies offering this type of insurance today than there were some years ago. At one time there were over one hundred companies offering long term care policies, now there are only five or six.

If you believe that you need this insurance, you should try to get coverage only with a well-established company that has a history of being in business for at least fifteen years and has faithfully served its long term care policyholders.

You will also need to check and make sure that the company has not had to raise its premiums drastically. These increases in premiums often occur when companies begin to pay out on policies that they wrote years ago and that they did not accurately price. Your state insurance commission can also help you in deciding what fair pricing is in your region as well as inform you on any current regulations that pertain to long term care insurance.

Researching what your options are in long term care insurance will take time, so the sooner you begin the better. You should not sign up for any plan until you have had time to look into several plans. As an added precaution, you may want to speak with a reputable financial planner to get some tips on how to best approach this time of life.

Better Deals For Life Insurance Policyholders

It was announced in May this year that the industry regulator the Financial Services Authority are asking for better treatment for those who hold life insurance policies in the UK and those who wish to purchase life insurance cover. It seems that some advisers selling life insurance policies are giving consumers very poor advice regarding the product, both before the sale has taken place and after.

In an insurance sector briefing issued by the FSA, it said that the after sales care when it comes to life insurance was seen as being very poor with some consumers thought not to have been treated fairly. There are also concerns over the quality of the product that some consumers are getting. Sarah Wilson who is director and sector leader of the Financial Services Authority insists that the findings where significant and that consumers should be able to be make the right choices when it came to purchasing the product.

The report said that consumers currently cannot make the right choice for themselves regarding their profits policy, because they simply don't have the necessary information by which to do that. Consumers can be given very poor information before and after they have been sold a policy, which then leaves them unsure about what they have paid for and have actually bought.

In response to this and to try and rectify the situation the Financial Services Authority are asking those that sell the insurance to take more time out to make sure the consumer is more aware of the product they are purchasing. If the product isn't understood then it needs to be clearly explained in jargon the consumer understands.

Sales of the product clearly need to be assessed with staff making sure the consumer understands the performance of the policy and the features of the product.

If the sales techniques and advice given in general about the product isn't stepped up to ensure the consumer understands the product, then the Financial Services Authority are insisting they will start to hand out fines as a way of dealing with those advisor's and companies who don't put the consumers best interests first.

The Independent newspaper has said that the Association of British Insurers have welcomed this with open arms and accepted the Financial Services Authorities recommendation when it comes to consumer satisfaction regarding their life insurance policy.

Auto Coverage Analyzer

Buying a car means taking a well thought out decision. However, sometimes taking a well-thought, wise decision gets difficult. This is even more so, when it involves a big investment decision like buying car and insuring it. One wrong decision and you might end up in a financial soup. Once you have already bought a car or you have owned a car for sometime now, it is time for getting it insured.


Now, when we come to think of car or for that matter any auto insurance there are quite a few factors that have to be considered before settling for a particular market offer. Analyzing these factors would determine which auto insurance policy suits your needs the best. Or else you might end up paying too high premium or not taking enough coverage for your automobile. First of all one has to consider what is the purpose of owning it. Whether it is for personal use, used as public transport such as private taxi, or used in transportation of heavy duty or light duty industrial goods or is it put to some other use. Age is also a major consideration. Old vehicles have to pay higher premium as compared to the new one. Type and model of the vehicle also play a major role. Like wise there are N number of factors that need to be checked out.

<b>Getting The Right Insurance</b>

When you buy auto insurance online there are large numbers of sites that offer auto insurance on each site there are quite a few number of market offers. This makes online shopping for the right kind of auto insurance a tedious task. However, there are some sites that provide automated tools that assist you in determining what kind of auto insurance would work the best for you and how much coverage do you need. These tools or auto coverage analyzer can go a long way in helping you save a whole lot of money on auto insurance.

Wrong auto insurance would leave you paying amounts that are too high and paying extra for coverage you may not need. On the other hand, if you choose amounts that are too low, you risk being uncovered in case of an accident. Thus, whether you're shopping for new auto insurance or renewing your existing policy, Auto Coverage Analyzer can help you make the right coverage choices. All you have to do is answer a few question about your financial standings and your automobile conditions, price tag, coverage needs etc and the auto coverage analyzer would automatically generate coverage category wise auto policy value recommendations and explanation as to why is it needed.

All About Life Insurance Settlements

Life insurance settlements refer to the amount of money your beneficiary receives after you die. The life insurance company pays the settlement based on the amount you have paid for with the premiums of the policy. Life insurance settlements are usually only paid out after your death and there are several types of life insurance policies you can choose from.

Term life insurance pays out the life insurance settlements only if you die during the term of the policy. You can choose 5, 10, 15, and 20-year policies and it is even possible to get a 30 year life insurance with this type. Whole life insurance on the other hand covers you for your whole life and the settlement is paid out whenever you die.

With changes to the life insurance industry, you can now enjoy life insurance settlements prior to your death. You can sell your policy back to the company for a lump sum settlement at a discounted value. This is particularly good if you find yourself in financial difficulty and the settlement from the life insurance will help you out. With senior life insurance it is also advantageous because the senior may want to cash out the policy and purchase a better one.

It is also possible to get a life insurance settlement of a higher amount. Depending on the policy you choose, you can liquidate an older policy that has added to the value over the years. This puts you in a very good financial situation.

With senior life insurance, the policy provides peace of mind for the older citizens that do not want to burden their families with the cost of funeral expenses. There are usually relaxed requirements and additional benefits as well as having life insurance settlements paid out after their death.

Usually a medical exam is required for senior life insurance and the result of this exam determines the cost of the insurance. There are different premiums for differing amounts of life insurance settlements. If you just want a burial insurance, the life insurance settlement will cover the funeral expenses. This is often the type of life insurance that people with disabilities and terminal illnesses choose. Whatever your circumstances, you can’t afford to be without life insurance because of the expenses incurred by those left behind.

Life insurance settlements are an important event, and the reason you take out life insurance.

Monday, 23 May 2011

5 Tips For Cheaper Life Insurance Premiums

1. Consider an income policy instead of a lump sum

Most people know that life cover pays out a lump sum if you die. But far less know that you can buy cover that pays a regular tax free income instead of a lump sum. It’s official name is Family Income Benefit and is often cheaper than the more common Level Term lump sum payout option. So why would an income be better than a lump sum?

Many people who take out a life insurance policy simply want to provide an income for their family to replace the earnings lost if they died prematurely. But many policies are bought with a lump sum benefit requiring the surviving family to find a suitable savings or investment vehicle to generate an ongoing income. In addition, the interest generated from a lump sum is taxable whereas the income from a family income benefit policy is paid tax free.

For many people not used to managing large amounts of money, suddenly having to find the right savings account or investment can prove an additional burden at an already distressing time. This is where Family Income Benefit can offer the best of both worlds.

2. Consider a reducing policy for mortgage life cover

One of the most common reasons for needing life insurance is to protect a mortgage loan. The type of mortgage you have will largely dictate what form of life insurance you need but this is often one of two types of term life insurance.

If you have an interest only mortgage then you will need level cover as the mortgage debt will remain constant unless you increase or reduce the mortgage loan. However, those with a capital and interest mortgage can opt for a decreasing term policy where the cover reduces in line with the reducing mortgage loan. As the cover reduces over time so does the risk to the insurance company making this type of life insurance cheaper than the level term option.

So if you have a capital and interest mortgage with a level term life insurance policy and only need to cover the mortgage amount, you could save money by switching to a reducing policy. The downside to this is that you will lose any surplus cover provided by a level policy as the mortgage loan reduces but the level insurance benefit stays the same.

3. Stop smoking

All insurance is based on risk and so to cut the cost you have to cut the risk. With life insurance, the risk is based upon your chances of dieing whilst the policy is in force. Insurers measure the risk by assessing your health and medical history.

Anything that increases your risk of dieing prematurely will increase your premiums. These risk factors can include your current state of health, family history, hazardous occupation or hobbies but most commonly being a smoker has the greatest impact.

Now, I know you’re not going to stop smoking to save money on your life insurance but its one more reason in a long list to quit. Not only will you save money on the cigarettes but you can also add a saving of around 40% on your life cover premiums too.

4. Shop around

Life insurance is a very competitive market and prices can vary widely depending upon where you look. The easiest way to compare lots of insurers and policies at once is to use one of the many free online comparison websites. The only caveat to this is to be aware that these sites only compare premiums and not cover, so have a firm idea of what type of cover you need first. This will help you to compare like with like and discover the true bargains.

Alternatively, you can use an insurance broker to do the shopping for you and this route can yield some substantial savings if you use a particular type of insurance broker.

5. Use a discount life insurance broker

If you know which type of cover you need and don’t require any advice, a discount online insurance broker can save you hundreds of pounds in lower premiums.

Due to the low costs and large audiences available via the internet, many life insurance brokers have launched websites offering life insurance quotes with major insurers at discounted premium rates. These brokers are able to discount cover from major insurers by rebating much of the commission they receive from these insurers to reduce your premiums.

Savings vary but can mean genuine reductions of between 10% and as much as 40% over the insurance company’s standard premiums. Many sites provide instant online quotes comparing multiple policies from leading insurance companies.

A simple Google search for discount life insurance will provide a list of most brokers or use an insurance directory like UK Insurance Index which also features customer reviews.

Sunday, 15 May 2011

20 Insurance Tips

1. Buy from the internet.Most companies offer a discount for online applications as this is automated process and costs them a lot less to process your application, you can usually see discounts of 5%-10%.Click here to get a instant online insurance quote

2. Shop around.All insurance companies use different formulas to calculate your insurance premium by adding or detracting money after each question the ask you.By shopping around you could find big savings on your insurance premium.

3. Buy extra products.Most insurance companies also do other insurance products ie"Building's and content's insurance".Most insurance companies will give extra discounts for purchasing more than one product,by doing this you could save a fair amount on all your insurance premiums.

4. Pay your insurance premium in one go.By paying your insurance premium in full you can avoid paying costly interest charges that would be added if you paid your insurance premium by instalments.Some insurance companies may charge as much as 15% APR on instalments.You may even receive a discount for paying in full.If you can not afford to pay in full check out what rate a small loan would be you may still save some money.Fill out a online loan application.

5. Increase your voluntary excess.Your excess is the amount paid by you in the event of a claim,by increasing this your insurance company should reduce your premium.

6. Lower your annual mileage.Lowering your annual mileage can reduce your premium,most insurance companies will quote you for around 12,000 miles a year.Try and work out how many mile's you will do if it's likely to be less you may get a discount.Be honest about this as your insurance company may ask to see old MOT'S and service history to verify your mileage in the event of a accident.

7. Have a Alarm,Immobiliser or Tracker fitted.Theft of and from your vehicle play a major role in the calculation of your insurance premium.Having a alarm or immobiliser fitted will give you a small discount to your premium and having a tracker fitted could make you quite a saving.

8. Take the advanced driving test.Passing your advanced driving test will show your insurance company that you have extra skill when driving and are less likely to be involved in a accident.

9. Don't inflate the value of your car.Adding extra value to your car when you apply for your insurance quote will do nothing for you apart from increase you premium.In the event your car is stolen or written off you will only be paid the market value of your car at the time of your accident.

10.Look after your credit rating.Insurance companies are now looking at your credit score as part of the calculation for your insurance premium.Maintaining a good credit rating could avoid unnecessary additions to your premium.

11. Insure your car Third Party Only.Third party only is the minimum cover you are required to have by law it's also the cheapest.If your vehicle is of a low value then you could consider this type of cover.You need to remember that with this type of cover if you was to have a accident that any damage to your vehicle would not be covered for repair.

12. Keep a clean licenceInsurance companies take driving convictions very seriously and can dramatically increase your car insurance premium,by maintaining a clean licence proves to the insurance you are a safe and careful driver.

13. Remove any unnecessary drivers.If you have a young driver on your insurance policy that no longer use's the vehicle you should remove them as this will reduce your premium.

14. Young driver's add a older driver.Some insurance companies will reduce young drivers premiums if they have a older named driver on the insurance.

15. Build up your no-claims discountOne of the biggest factors affecting your car insurance premium is the number of years no-claim's discount.You could receive up to 75% discount for around 5 years of no claims.The more years you can stay claim free the safer driver your insurance company will see you as.

16. Protect your no-claims discount.Although this will increase your insurance premium if you have a lot of years of no-claims you may want to protect this as a small claim may increase your premium by up to 75%.

17. Buy a lower insurance group car.A very important factor to your insurance premium is what car you drive.Most insurance companies adopt the Association Of British Insurance Group Rating.This rates vehicle's from 1 - 20 generally speaking the higher the group the higher the premium.By buying a car with a lower group rating can lower your premium especially for young or inexperienced drivers.

18. Join a car club.If your vehicle is a classic or specialist consider joining a club related to your car most clubs offer insurance schemes which have very good premium rates.

19. Put your spouse as a named driver.Some insurance companies offer discounts when you add a spouse as a named driver as opposed to unmarried couples,they see marriage as a sign of stability and associate stability with safe driving and there for give you a discount.

20. Take pass plus.If you are a new driver consider taking your pass plus.some insurance companies could give you as much as a 25% discount and when you have just passed your test and have no no-claims this could make a considerable saving.

Related Articles 

Auto Insurance Quotes

Free Insurance Directory

Risk Management

Managing Illness

Insurance Glossary

A Guide To Car and Motor Insurance

Whether you’re buying clothing or shopping for car insurance, you always want to get the best value for your money. So, what’s the secret to finding reliable, affordable car insurance?

Shop around for the best deal. Get several car insurance quotes from different insurance companies before you buy or renew your policy. Insurance companies vary, so you could get a better deal somewhere else.

Don’t be afraid to switch. You can switch insurance companies whenever you want, even if it’s in the middle of your car  insurance policy term. If you find a better rate, switch and save.

There are three types of Car Insurance:

Third party, which covers your legal liability if you damage someone else’s physical property (walls, vehicles, gates etc.) due to a driving accident.

Third party, Fire and Theft offers third party cover and adds on two useful pieces of cover - fire damage to and theft of your car, including damage caused by a theft or attempted theft.

A fully comprehensive policy includes Third Party, Fire and Theft and in addition will pay for damage to your own vehicle in the event of an accident. There are many extras, too, for example it will also give you cover when you drive other people's cars - useful if you borrow someone's car and their insurance does not cover you.

The following factors affect what you pay for your premiums.

Your age, your job, your driving record.

The car you drive. The higher the value of the vehicle, the higher the premium. High performance vehicles are also more expensive to insure than their stock standard equivalents.

Then there's the location of the car. You'll pay more if you keep the car in a high-crime area or park it on the street at night.

What you use the car for. You'll pay more if, for example, you plan to use the car for business delivery purposes.

Then there is the excess structure that you choose. The higher the excess the lower the premiums.

Gear Locks, Satellite Tracking - will help reduce your premiums

If you are buying a new car ? Don't forget to shop around for Insurance!

For a first-time car buyer, the process can be a difficult decision. Many buyers are not aware of the fact that they need to have insurance before driving their new car off the showroom floor. The financial institutions providing the finance for the purchase will insist on this, in order to ensure that their new asset is protected.

Don't just accept the first offer that is given to you, get at least 3 quotes before making your decision. "Many banks or finance institutions are affiliated to an insurance company or brokerage firm. New buyers therefore may find themselves feeling pressurized to take insurance cover through the bank's preferred supplier. It is important to know that this cannot be enforced and the decision lies with the client. This makes it essential to shop around for competitive quotes, to ensure that you are offered the best deal - from the perspective of both cover and price. For young drivers, this becomes imperative, as they are often penalized for their age and lack of driving experience, translating into higher premiums and excesses."

Cash buyers are not exempt from the need to insure their new car. Thefts and hijackings are still a reality and the growing number of cars on the road puts all drivers at increased risk of being involved in an accident. Choosing an insurance product that is suitable in terms of budget, value adds, cover and excess payable is a careful decision that, with the right advice, can be made sensibly and safely.

Many young, first-time buyers find that purchasing insurance through a direct insurer is actually a simple process.

They are likely to receive a tailored insurance solution catering for their specific needs - with direct insurance, clients don't pay any additional charges for getting what they want. Any driver about to embark on purchasing a new vehicle would do well to consider the time- and cost-saving benefits of direct insurance."

Related Articles 

Canada Insurance Quotes

Life Insurance Quotes

Auto Insurance Quotes

Ottawa Insurance

Critical Illness Insurance