Volvo Car Insurance
Keeping Premiums to a Minimum
According to the Automobile Association (AA), Volvo car insurance premiums are up 16.3 per cent from this same time last year. Drivers of Volvo cars are sometimes paying almost £82 more for motor insurance than a year ago, and they aren’t likely to see a reduction anytime soon.
In fact, the average comprehensive policy premium of £781 could pass £1,000 by 2018.
These changes stem from an adjustment to the Ogden rate, the upcoming rise in the Insurance Premium Tax from 10 to 12 per cent and more expensive technology in vehicles.
For the last 16 years, the Ogden rate, the rate used to calculate personal injury claim payouts, has been set at 2.5 per cent. Now, after a ruling by the Minister of Justice, the Ogden rate has been reduced to -0.75 per cent, resulting in more money for injury victims, but a higher bill for insurers.
Due to this ruling, experts estimate that drivers under the age of 22 may pay up to £1,000 more on their policies.
Despite the recent spike in premium costs, there are several ways you can keep your motor rates low:
- Enquire about a telematics policy. In this policy, the insurer installs a system in your vehicle that monitors your driving and then rewards you for driving safely.
- Secure your car with an alarm, immobilizer or tracking device. This discount can lower your premiums by as much as 5 per cent.
- Drive fewer miles. Cutting 10,000 miles a year can save you £100, on average, in premium costs.
- Talk to Arkwright Insurance Brokers before purchasing a vehicle. Certain vehicles, such as sports cars, carry higher premiums
What you need to know about Volvo car Insurance
Whilst some reports have suggested that advances in technology are to blame for the increase in premiums, the AA blames the increase on continuing problems with whiplash claims and the growing tendency of consumers to shop around for new policies each year.
The insurance premium tax (IPT) hike that was announced on 23rd November isn’t helping matters either, as its 2 per cent increase means that drivers will see a 12 per cent IPT added to their premiums on 1st June 2017. This could add around £15 a year to the average motor insurance premium, according to insurance industry estimates. Younger drivers could especially be hit by the most recent IPT hike, with average premiums for those under the age of 25 potentially rising by £35.
Keep your motor cover premiums as low as possible by following these tips:
- Pay annually. If you can afford to pay the lump sum up front instead of monthly, it may be cheaper.
- Boost your security. The more protected your car is, the lower your premiums will be.
- Consider ‘black box’ cover. Known as ‘telematics’, black box cover can lower your premiums by monitoring your driving behavior.
- Add an experienced driver. If you’re a new driver, adding an experienced driver to your cover can lower your premium. Never add him or her as the main driver that is illegal.
Arkwright Insurance Brokers (contact: 01204 392 525 or email Quote@arkwrightinsurance.co.uk) is devoted to keeping your rates low and your cover robust. Call us today to learn about the best motor insurance solutions for your vehicle.