Mileage
When filling out your application form you will be asked to declare your yearly mileage. Drivers whose mileage falls under a set limit will find themselves earning a discount on their premiums. As low mileage motorists are simply not on the road as much as other insured drivers, it stands to reason that they represent a lower risk.

Named drivers
Named drivers are the people you declare on your insurance policy who are licensed to drive your car under your policy. Reducing the amount of named drivers on your policy can significantly reduce your insurance premiums. Try not to include any named drivers on your policy unless it is absolutely necessary, although Diva can offer you spouse discount on some policies.

No claims discount
Also known sometimes as the ‘no claims bonus’, the no claims discount is one of the best ways of reducing your car insurance premium. Depending on the number of years that you have stacked up, your premium will be reduced by a certain percentage. In some cases a good no claims bonus can earn you a discount of up to 60%. It is worth while remembering that no claims discount is only calculated in full years, or periods of twelve months, so try and avoid cancelling your car insurance policy mid-way through an annual term.

Profession
If your job falls into a higher risk category then you could find yourself paying more expensive premiums. Jobs that are perceived as being hazardous include the occupations of politician or journalist. Office jobs will be perceived as lower risk and hence be allocated lower premiums.

Safety and security features
If your car has safety or security features then you can benefit from discounted insurance premiums. Crumple zones, side impact features, alarms, immobilisers and trackers can all help to reduce your premium.

Type of use
When you apply for a UK car insurance policy you will need to state details about your driving habits. The main categories are as follows: social, domestic and pleasure only, social, domestic and pleasure including commuting to a permanent place of work and social, domestic and pleasure with business cover. Social, domestic and pleasure is the most inexpensive type of policy, so it could be worth changing your motoring habits in order to save on your premiums.

Vehicle type
Your choice of vehicle will have a hefty impact on your premiums. High profile, high performance and high maintenance motors will attract the largest insurance costs while more ordinary cars will incur their owner lower costs. Cars are allocated into one of twenty groups according to classifications drawn up the Association of British Insurers, and premiums calculated accordingly. First time buyers should perhaps consider that buying a lower profile vehicle could save them pounds on insurance costs. Visit the ABI website to find out the grouping of your vehicle or prospective purchase.
Back