How driving safely can reduce your car insurance premium
Fri, 23 Dec 2011
Sometimes, the simplest solutions are the most effective – and when it comes to saving money on your car insurance, safer driving might just be your simplest solution.
Risk and reward
According to the Department for Transport, human error and carelessness are the biggest factors in road traffic accidents each year.1
Car insurers take this into account when they assess risk, paying special attention to the driver’s record. Therefore, the safer a driver you are, the less of a risk you represent and the cheaper your car insurance should be.
To see how you could establish and maintain a history of safe driving, here are some very simple tips that everyone can use.
Slow down
When you’re late or in a hurry, it can be tempting to break speed limits, but remember - they exist for a reason. Not only does driving over the speed limit put yourself and others in danger, it can also cost you dearly.
If you’re caught speeding and get points on your licence, even if there’s no accident involved, it’s a clear indicator to your insurer that you are a risk. On average, motorists with speeding convictions1 pay twice as much for car insurance.2
Also, be aware that dangerous driving at extremely excessive speeds can carry a prison sentence. In this case, your car insurance premium would be affected for years to come and may never fully recover.3
Don’t drink and drive
More than half a million breath tests are carried out each year and on average 100,000 are found to be positive.4 Punishments for drink driving include up to six months in prison, revocation of your licence and up to 11 points on your licence.
Anyone convicted of drink-driving can expect to see their car insurance quotes go up and stay up for 5 years after their conviction. If your conviction resulted in jail time, your car insurance premium would be affected for many more years - perhaps even permanently.
Even one alcoholic drink can have an effect on your driving. The easiest way to stay legal and safe is simply not to drink any alcohol at all if you know you are going to drive. That way you can keep your licence clean and limit the risk of harming others around you.
Switch off your phone
Using a mobile phone while driving means you’re four times more likely to crash, and research has shown that reaction times for drivers using a phone are around 50% slower.5
It is now illegal to talk on a handheld phone whilst driving so don’t risk it.
Stay safe
Having an accident due to unsafe driving can impact your car insurance in two ways. First, it can cost you your no claims discount. Second, the penalties involved - a fine, points on your licence or disqualification - all send clear warning signs to your insurer that you are a high risk driver.
Remember, the higher risk you are perceived to be, the more your premium will cost.
It’s a win-win situation: by reducing the risk of having an accident, drivers who build up a safe driving history can keep themselves and others safe on the road whilst also reducing their premiums.
References
2 The Telegraph – January 2010 3 The Crown Prosecution Service – Dangerous Driving
