A simple change of address can increase your premium by thousands of pounds as found by price comparison site moneysupermarket.com.

In the table below are the premium prices for an 18 year old student male driver with a 53reg Vauxhall Corsa and one years no claims bonus.

The University of Manchester tops the list with premiums just under an eye-watering £6,000. As we can see the cheapest university premiums are in Edinburgh so technically students living in Edinburgh could expect a massive £4,000 increase in their car insurance premiums just because they want to study in Manchester.

Peter Harrison of the price comparison site said “The change of address could increase students’ premiums, potentially pushing the total expense of running a car beyond what many can afford.”

On the flip side students in Manchester who wish to study in Edinburgh could save themselves £4,000.

Students are already getting a raw deal in regards to the increase in tuition fees and prices of food, drink and petrol.

How to save money on your student car insurance

There has never been a more important time for students to save money at every opportunity. Therefore we have put together a list of five top tips to help save you a fortune on your car insurance premiums.

1. If you can afford to spend some money beefing up the security on your car this could reduce your premiums drastically. Adding an immobiliser or car alarm could help reduce your premiums.
2. Take a pass plus course that teaches you advanced driving skills such as driving at night, in poor weather and on the motorway. It could save up to 10% off your premium.
3. There are some insurers that can fit a device in your car that will measure how far you drive and at what times. Sticking to driving in the day, limiting your speed and covering less distance will help reduce your annual cost.
4. Find an insurer that offers a no claims accelerator policy. This helps you get a full years no claims bonus in just nine months.
5. No matter how tempting it may be do not modify your car in any way. Adding expensive alloy wheels, the latest sound system or even a bonnet bulge can increase your premium by hundreds of pounds.

Budgeting tips for students

Whilst we all could do with advice on managing our finances, some students could be in greater need as this may be the first time they have had to budget.

With student loans coming in, and lots going out on books, shopping, petrol and car insurance it can be all too much for some students.

The video below offers advice on managing your money whilst at university without having to miss out on any fun.

Add-ons

Almost every car insurance policy offers some optional covering like roadside assistance, replacement car rental and gap cover. These add-ons can save a lot of money but don’t cost much more apart from the base cover. Take in consideration, an accident can make your care unavailable for 7 or 10 days by keeping it in the workshop for repairing. For this phase, you have to use alternative transportation. You may be in need of paying for a rental car and its cost for a week is as much as six months worthy of your car insurance premiums. Simply paying a little more, you can save a lot.

Price

Without monopoly business environment, insurance premium, like any other product or service, vary from company to company. Like all other highly comparative business and insurance, car insurance companies also provide different types of policies and different levels of service. Some provides general service and some provides specific service for specific class of people like adult-only, old-man-only or woman-only service. They take policies to attract these specific classes as their clients.  Shopping around is the best to do. Compare insurance quotes of different insurance companies. Comparing is now easy due to the availability of insurance quote comparison websites. A traditional insurance broker can also help you in comparing quotes.

Car’s Profile

To assess your risk precisely, insurance companies accumulate and assemble vast amount of data about you and your vehicle. Your car carries its own set of data and insurance companies use them to determine the amount of your monthly premium. Companies generally the following data,

• Model of car
• Number and frequency of accidents involving with the car model
• Crime data
• The risk of theft related with the model

All these and more data will play certain role to determine the premium you have to pay. You will be charged a high premium if you drive a relatively cheap vehicle model which is not very popular and replacement parts are expensive. For a car that is extremely safe and protects occupants in accidents, you will be charged a lower premium.

How can knowledge of these helpful for you? Make some research on the models you are interested in; get and compare insurance quotes for all these models for getting a good about the cheaper model to insure. Then determine which one you want to buy.

Find Discounts

There are many discounts available for every type of driver, well except bad drivers.  There are safe driver discounts, good student discounts, and retirement discounts.  It is up to you as a consumer to find the discounts available to you, as most insurance companies will not make you aware of them.

Shop Around

Do not just go with the first insurance company you talk with.  Each company is going to have different rates for different drivers.  Some companies will actually compare rates for you, but you will still want to do your own homework as they do not compare every company’s rates.

Pay Once, Instead of Monthly

If you pay your car insurance every six months or once a year then you will save money with most companies.  Most car insurance companies will give discounts to those consumers who pay up front rather than paying monthly.  While this may save you a hundred dollars or more, you have to have the cash available to pay all at once.

These are just a few ways to save on car insurance, but there are many other ways to save.  Be sure to do your homework when purchasing insurance and you will save yourself money and possibly help yourself avoid debt relief programs and debt.

Monique Rowe is a guest writer that writes for Franklin Debt Relief.

One of the best examples of this is getting an education. A great way to be protected against being stuck in an unfulfilling, low paying job is to get a degree.  Whether it’s a great Boston law school or a degree from a distance learning university, you can’t go wrong with an education. Especially in rough economic times, earning your degree is practically considered a necessity.

Graduating from a degree program will most likely land you a position that pays you well, as employees tend to hire people with degrees more so than non-degree holding applicants.

Another good non-traditional form of insurance is having a savings. If you are able to save money, you will be better prepared to protect yourself against debt and having no money when unexpected expenses arise. Sometimes when you least expect it, your car will break down or you’ll need surgery, and having savings will help to cushion the blow of such expensive situations.

The best way to save is to treat your savings as a bill. If you can set aside money each and every month, you will slowly but surely grow your savings into a large amount of money that could someday save you!

One of the easiest and cheapest forms of insurance you can arm yourself with is exercise. Consistent and quality exercise can help to ensure that you don’t acquire preventable diseases. While health insurance can help you when you do get sick, exercise can help prevent you from getting sick in the first place.

Aim to exercise every day for at least 30 minutes, and you will be doing your part in helping to prevent disease, illness and undesirable conditions. Whether it’s a brisk walk around the neighborhood, surfing, or playing tennis, find whatever activity you enjoy and do it often.

Ever since we were little, we’ve looked forward to the day that we could drive.  Being out on our own, being able to go where we want when we want, and having that freedom was always an exciting thought.  Although we think of driving as a fun thing, we don’t realize what else comes along with it.

Between the cost of buying our first car, getting maintenance on it like oil changes and repair, and the cost of car insurance, it doesn’t seem all that “fun” anymore.  Like anything, we want to buy things for the cheapest price possible, but what factors in the cost of our car insurance?  It’s important to realize what may be costing you so much in the first place.

Car:  The type of car you drive will really put a price on your insurance.  You need to think about the possibility of theft with your car, the cost of repairs for your model, and the overall safety of your car.

Age:  Anyone that is over the age of 25 will pay less than someone that just turned 16.  They are looking for experience on the road, and want to know how good of a driver you were in the past.

Driving record:  You need to have a good driving record to have a lower cost.  If you’re known for accidents or traffic violations, you will pay more than the average person.
Coverage:  You also need to look at what kind of coverage you’re getting, if you want a high deductible or a low deductible.  The higher the deductible you’re paying, the lower the cost.

Miles:  Also, keep in mind how many miles you’re driving on a yearly basis.  The more you drive, the more possible accidents there could be.

Location:  Location also plays a big role in the cost of your insurance.  If you live in a high crime area, or have a location that is known for more accidents, you will most likely pay more.

As you can see, there are several things that factor in the cost of your insurance.  I recommend that you take the time to see what the cost would be for all the insurance companies out there.  See what’s the most affordable to you, and which company has the best customer service!

Sixteen years ago, the AA started compiling an index on car insurance rates, and these are the sharpest rises it has seen since then. Young male drivers are paying the most with the average premium now coming in at around £2500. “Young men are twice as likely to be involved in these accidents than young women.” said Simon Douglas, director of insurance at the AA.

Motorists can now expect their car insurance renewals to be higher than last year, which has caused many insurance companies to come under fire from consumers. But is this criticism fair?

A rise in personal accident claims, uninsured drivers and fraud are all costing the insurance industry around £3.5 Billion a year so this cost has to come from somewhere.

Insurance Fraud

Insurance fraud can come in a number of different forms. Some forms seem fairly innocent, whilst others are intentional. Criminals crashing their cars for cash, has been in the news recently where fraudsters will break suddenly, usually for no apparent reason so the victim will have no time to react and crash into the back of them. Once the victim has admitted liability, the fraudster will then launch personal injury claims for themselves and usually fictional passengers.

Fronting is a form of insurance fraud. This is where the parent of a younger driver will insure a car for the sole purpose of the son or daughter to drive it as a named driver. Also a recent survey by Money Super Market, showed that over 11 million drivers admitted that they would lie to their insurer to guarantee a payout.

Fraud costs the insurance industry £2 billion a year and adds £44 to every motorist’s premium.

Personal Injury Lawyers

It is estimated that 10% of every motor premium now goes to the legal profession. “It is a dysfunctional system – people have to ‘play’ the system as it exists.” said

Nick Starling, director of general insurance and health at the Association of British Insurers.

They found that while the average personal injury claim following a road accident was £2,430, insurers had to pay a further £2,100 in legal fees.

With ‘No Win, No Fee’ lawyer now advertising on every possible medium and the country facing some of the harshest spending cuts since the war, it is not surprising to see why so many people will take this route. Fair enough, claims where people have been badly injured and need the money to help them live are justified, but the problem comes from people who are claiming for imaginary whiplash and other ailments.

It is estimated that personal injury claims cost the insurance industry around £1 Billion a year, thus adding a further £40 to every motorist’s premium.

Uninsured Drivers

Unfortunately this is a vicious circle that has no end in sight.

The high cost of insurance is clearly a factor in the large number of young people taking to the road without cover, and of course the more uninsured motorists there are, the higher insurance premiums are pushed.

New technology in police cars, allows them to spot uninsured drivers in seconds with automatic number plate recognition systems. But with the fines for first time offenders usually only £200 and six points on their license, is enough being done to discourage drivers taking to the road without insurance? Apparently not, as there are now calls on the government to increase the punishment if drivers are found not to have insurance. Insurance company Direct Line asked 2000 of its customers what figure they would like to impose against these offenders and came out with an average figure of £900.

Unless this circle is stopped, we could see yet further rises in car insurance premiums. It costs the industry £500 Million a year and adds £30 to every motorist’s premium.

Stefan Mustieles

Search Associate

Money Super Market

Things that will increase your car insurance rate

The 8 things that may increase your car insurance rate are given below:

Cause a car accident: If you are found responsible for an accident or have traffic tickets in your driving record, then your car insurance premium is likely to increase. The exact increase (called surcharge) varies from company to company. If you are below 25 years, then just one ticket is likely to increase your car insurance premium by 50%. However, if you are below 25 years, then the first ticket might not affect your premiums at all, as most of the insurance companies don’t review their policy holders’ traffic records on a yearly basis.

Credit score: Your car insurance premiums will be increased if you have low credit score. People who pay higher insurance premiums are those who have poor credit score. Almost all the insurance companies check credit score before offering a quote. If you don’t have a decent credit score, then you will pay premium for car insurance like no one else does.

Locality: Your insurance premium will be increased if you live in those areas where drivers are prone to have traffic related accidents. The insurance companies will regard you as a higher insurance risk; therefore your premiums will be higher.

Expensive cars: Your insurance premium will be increased if you buy a sports car or an expensive car such as Nissan 350Z and Chevrolet Cobalt.

DUI: If the car insurance company discovers that you’ve received a DUI (driving under the influence of alcohol), then your insurance premium will be increased. You will be considered as a high-risk driver. Some insurance companies may even cancel your policy.

Teen drivers: Your insurance premium will be increased by 50% to 500% if you add your teen son or daughter in your policy.

Payments: Your premium rate is likely to increase if you choose to pay your premium on a monthly basis. However, if you choose to pay the premium annually, then you will be charged lower premium rate.

Speeding ticket: If you get a speeding ticket by the police, then it is definite that your insurance premiums will increase.

Finally, you may have to pay higher premium rate if you choose a lower deductible. These are the 8 things that are likely to increase your car insurance premium.

Don’t just accept that car insurance is always prohibitively expensive, get out there and do something about it.

With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap car insurance. But although it is possible to find cheap car insurance, the question remains, is it worth buying?

Everyone knows that car insurance companies are not all equal. Cheap car insurance is wonderful when paying the bill, but make a mistake on the company you select and you could find that the cheap car insurance policy that you found may turn into a nightmare. Cheap car insurance may not turn out to be so attractive when making a claim.

So if you have found a discount car insurance broker don’t just take the cheapest quote that you get. You need to find out a little about the insurance company that is offering the cheap car insurance rates.

And there’s ways to reduce the cost of your car insurance even with the best of companies. Here are some tips for those looking for cheap car insurance to  help reduce the cost of car insurance without compromising other things.

Cheap Car Insurance Tips

1.    Look at your deductible amount. This is the amount that you pay first out of any claim. The cost of your policy is directly related to this amount. Many people, particularly those who have had their insurance policy for a long time, have never considered whether they ought to vary their deductible. If you have a good driving record and are prepared to increase the risk of paying a larger amount in the event of a (hopefully unlikely) claim you can save money by increasing your deductible.

2.    Have a look at the type of car you drive. Certain types of cars attract higher car insurance rates. Cars such as sports cars and also certain makes and models that are prime theft candidates cost more to insure. If you are buying a car then find out which makes and models these are before you buy.

3.    Drive carefully. Although it sounds a little trite to say it, your car insurance cost is a factor of your risk profile. You won’t get cheap car insurance if you have had 3 speeding fines and 2 accidents in the last year. These things are all taken into account and you should take care with how you drive. It all adds up onto your bill. There are big safe driver discounts available.

4.    Considering installing safety and anti theft devices in your car. Again these affect your risk profile. If you have a car that is safer and less at risk of theft it should be cheaper to insure. And if you have a car with certain safety devices now check that your insurance company is aware of these, if not tell them.

5.    Look at your policy when it comes to renewal time, don’t just pay. There are some things that you can vary in your policy that will affect the cost. Often there are some things there which duplicate other insurance that you may have that can be eliminated. Be critical, look carefully and ask questions about all these before you renew your policy.

6.    Have a look at who your other insurers are. Many insurers offer a discount for multiple policies. If you insure your house with a certain company then ring them up and find out if they do car insurance. Get a quote from them. Find out what discounts they offer.

7.    Find a good online  discount car insurance broker before renewing. The internet is a fabulous resource. Use it. There are all sorts of discount insurance brokers online where you can get fast quotes from a wide range of companies. Don’t just settle for the same company you always use. Car insurance rates vary all the time. Always get comparable quotes before renewing any policy.

So if you’re in the market for cheap car insurance there’s some ideas for you. Don’t just accept that car insurance is always prohibitively expensive, get out there and do something about it.