Wednesday, September 26, 2012
Saturday, September 22, 2012
Friday, September 21, 2012
We find that one of the most difficult challenges for many businesses is determining just how to compensate sales people. Developing an effective sales compensation plan is critical to your company's success and it is important that the plan that is developed make sense both for your business and your sales staff.
There seems to be a mindset among many sales people that they are entitled to a larger percentage of a given sale than they actually deserve. Unfortunately a number of businesses have made the critical mistake of overcompensating sales people in an effort to motivate them to higher levels of performance. When they discover that this rarely has the desired impact, they change the plan only leading to an alienation of the sales force.
Conversely, some businesses have taken a very conservative approach to compensating sales people and quickly discovered that underpaying sales people leads to high turnover, inadequate performance and low morale. Striking a balance between paying too much and too little is one of the challenges inherent in the process of developing of a sound sales compensation plan.
Business owners and managers must avoid "dabbling" in sales compensation if they are to arrive at a plan that works well for all involved. It takes a fair amount of thought and a lot of number crunching to arrive at a sales compensation plan that avoids as many pitfalls as possible and establishes internal equity within the sales force. In other words, the plan will end up being a true pay for performance plan that rewards sales staff for their productivity in terms of dollars generated.
There are many variations of sales compensation plans that will work well. Combinations of base salary, commission, and bonus usually work well as long as the numbers involved don't under or overcompensate the sales force. And the plan must be simple enough to both understand and administer.
As a manager of sales people, it is very important to understand that sales people will almost always tell you that they are motivated by a large sales commission and/or bonus percentage. In reality, most sales people will perform as well at reasonable numbers as they will at inflated numbers.
There are a few exceptions to this, but generally speaking, effort expended is not affected greatly by moving commissions or bonuses up unless those commissions and bonuses are too low to begin with. In fact, it can be argued that overpaying sales people actually causes a reduction in performance for many sales people because they don't have to work as hard to achieve strong compensation levels. In other words, they end up being compensated very well for underperforming. And that is the last thing that should result from your sales compensation plan.
The term "at risk compensation" is an important one in the context of sales compensation plans. "At risk compensation" is nothing more than that amount of potential compensation that is not guaranteed in any way, but is associated with the level of performance. Some portion of a sound sales compensation plan must be allocated to at risk compensation.
But why is this important? It is important because, very simply, you want to create a mentality among your sales force that they must work hard and perform at high levels each and every day in order to earn enough money to meet their immediate needs.
Some sales compensation plans have been developed around a salary only component. This type of plan is generally not recommended because there is nothing really at risk from a compensation standpoint. Sales people need to understand that in order to achieve sufficient compensation levels, they must generate acceptable sales numbers at a minimum. How you develop the "at risk" components of your plan is one of the questions that you will face.
Generally speaking, we recommend that between 17 and 26 percent of the gross profit generated by a sales person in any given sales year be paid to them. This range includes any base salary and all at risk compensation. For very high performers, the top end of this range can be expanded some, but it must be built into the plan initially. When businesses routinely give 30% or more of the gross profit generated from a sale back to the sales person, that leaves too little to contribute to other expenses of most businesses.
In developing a sales compensation plan, it is generally wise to think very carefully about what sales levels you expect from your sales force given their territory or market potentials. In other words, what are the sales objectives by representative? We strongly discourage basing any commissions or bonuses on the revenue levels generated by sales people.
Our preference, whenever possible, is to base sales compensation plans on the gross profit each representative will generate. Therefore, any specific commission and/or bonus plan will be based on gross profit levels for each person in your sales force rather than gross sales dollars generated.
Some businesses prefer a plan based on gross dollars generated. This can work, but it is critical that the sales force not be able to control pricing or discounts. When the incentive is based on gross dollars, any price or discount control allows too much room for negotiation to "get the deal". In that case, the sales person wins and the company loses. It must be a win-win situation.
A simple plan involves one commission and/or bonus rate across all gross profit levels. More complex plans use tiers for any of the at risk components. To illustrate, a simple plan might consist of a base salary of $25,000 per year plus 10% of the gross profit generated plus a year-end bonus of $5,000 if the representative generates at least $350,000 worth of gross profit in that sales year. Total compensation in this example would be $65,000 (assuming the representative hit exactly the $350,000 gross profit level). This amounts to 18.6 percent of the gross profit generated being paid out to the representative.
A more complex plan might look like this; a base salary of $25,000; a commission schedule of 8% for monthly gross profit up to $17,000, 10% for monthly gross profit between $17,001 and $25,000 and 14% for monthly gross profit in excess of $25,000; a bonus plan that would pay at year-end an additional 3% of gross profit if the representative hits a minimum of $400,000 in gross profit. For illustration purposes, let's assume that the sales rep hit exactly $30,000 in gross profit each month or $360,000 in total gross profit for the year. The calculation of the annual compensation would look like this:
Base salary: $25,000
Commission: ($204,000 x .10) + ($96000 x .12) + ($60,000 x .14) = $40,320
Bonus: $0 since the representative did not reach the $400,000 level
Total Compensation: $65,320 or 18.14% of gross profit generated
(In this example, we show an annual commission payout for illustration purposes only, but monthly commissions are almost always the rule. The sales commission number shown above would actually be paid out over the course of the sales year.)
These simple examples are provided only to illustrate possible approaches to sales compensation. There are a number of ways to develop a workable and effective sales compensation plan. The Sales Compensation Handbook is a widely used guide offered through mybusinessbooks.com. This handbook explains and illustrates various ways to create a sales compensation plan that helps increase sales and maximize productivity.
There seems to be a mindset among many sales people that they are entitled to a larger percentage of a given sale than they actually deserve. Unfortunately a number of businesses have made the critical mistake of overcompensating sales people in an effort to motivate them to higher levels of performance. When they discover that this rarely has the desired impact, they change the plan only leading to an alienation of the sales force.
Conversely, some businesses have taken a very conservative approach to compensating sales people and quickly discovered that underpaying sales people leads to high turnover, inadequate performance and low morale. Striking a balance between paying too much and too little is one of the challenges inherent in the process of developing of a sound sales compensation plan.
Business owners and managers must avoid "dabbling" in sales compensation if they are to arrive at a plan that works well for all involved. It takes a fair amount of thought and a lot of number crunching to arrive at a sales compensation plan that avoids as many pitfalls as possible and establishes internal equity within the sales force. In other words, the plan will end up being a true pay for performance plan that rewards sales staff for their productivity in terms of dollars generated.
There are many variations of sales compensation plans that will work well. Combinations of base salary, commission, and bonus usually work well as long as the numbers involved don't under or overcompensate the sales force. And the plan must be simple enough to both understand and administer.
As a manager of sales people, it is very important to understand that sales people will almost always tell you that they are motivated by a large sales commission and/or bonus percentage. In reality, most sales people will perform as well at reasonable numbers as they will at inflated numbers.
There are a few exceptions to this, but generally speaking, effort expended is not affected greatly by moving commissions or bonuses up unless those commissions and bonuses are too low to begin with. In fact, it can be argued that overpaying sales people actually causes a reduction in performance for many sales people because they don't have to work as hard to achieve strong compensation levels. In other words, they end up being compensated very well for underperforming. And that is the last thing that should result from your sales compensation plan.
The term "at risk compensation" is an important one in the context of sales compensation plans. "At risk compensation" is nothing more than that amount of potential compensation that is not guaranteed in any way, but is associated with the level of performance. Some portion of a sound sales compensation plan must be allocated to at risk compensation.
But why is this important? It is important because, very simply, you want to create a mentality among your sales force that they must work hard and perform at high levels each and every day in order to earn enough money to meet their immediate needs.
Some sales compensation plans have been developed around a salary only component. This type of plan is generally not recommended because there is nothing really at risk from a compensation standpoint. Sales people need to understand that in order to achieve sufficient compensation levels, they must generate acceptable sales numbers at a minimum. How you develop the "at risk" components of your plan is one of the questions that you will face.
Generally speaking, we recommend that between 17 and 26 percent of the gross profit generated by a sales person in any given sales year be paid to them. This range includes any base salary and all at risk compensation. For very high performers, the top end of this range can be expanded some, but it must be built into the plan initially. When businesses routinely give 30% or more of the gross profit generated from a sale back to the sales person, that leaves too little to contribute to other expenses of most businesses.
In developing a sales compensation plan, it is generally wise to think very carefully about what sales levels you expect from your sales force given their territory or market potentials. In other words, what are the sales objectives by representative? We strongly discourage basing any commissions or bonuses on the revenue levels generated by sales people.
Our preference, whenever possible, is to base sales compensation plans on the gross profit each representative will generate. Therefore, any specific commission and/or bonus plan will be based on gross profit levels for each person in your sales force rather than gross sales dollars generated.
Some businesses prefer a plan based on gross dollars generated. This can work, but it is critical that the sales force not be able to control pricing or discounts. When the incentive is based on gross dollars, any price or discount control allows too much room for negotiation to "get the deal". In that case, the sales person wins and the company loses. It must be a win-win situation.
A simple plan involves one commission and/or bonus rate across all gross profit levels. More complex plans use tiers for any of the at risk components. To illustrate, a simple plan might consist of a base salary of $25,000 per year plus 10% of the gross profit generated plus a year-end bonus of $5,000 if the representative generates at least $350,000 worth of gross profit in that sales year. Total compensation in this example would be $65,000 (assuming the representative hit exactly the $350,000 gross profit level). This amounts to 18.6 percent of the gross profit generated being paid out to the representative.
A more complex plan might look like this; a base salary of $25,000; a commission schedule of 8% for monthly gross profit up to $17,000, 10% for monthly gross profit between $17,001 and $25,000 and 14% for monthly gross profit in excess of $25,000; a bonus plan that would pay at year-end an additional 3% of gross profit if the representative hits a minimum of $400,000 in gross profit. For illustration purposes, let's assume that the sales rep hit exactly $30,000 in gross profit each month or $360,000 in total gross profit for the year. The calculation of the annual compensation would look like this:
Base salary: $25,000
Commission: ($204,000 x .10) + ($96000 x .12) + ($60,000 x .14) = $40,320
Bonus: $0 since the representative did not reach the $400,000 level
Total Compensation: $65,320 or 18.14% of gross profit generated
(In this example, we show an annual commission payout for illustration purposes only, but monthly commissions are almost always the rule. The sales commission number shown above would actually be paid out over the course of the sales year.)
These simple examples are provided only to illustrate possible approaches to sales compensation. There are a number of ways to develop a workable and effective sales compensation plan. The Sales Compensation Handbook is a widely used guide offered through mybusinessbooks.com. This handbook explains and illustrates various ways to create a sales compensation plan that helps increase sales and maximize productivity.
We find that one of the most difficult challenges for many businesses is determining just how to compensate sales people. Developing an effective sales compensation plan is critical to your company's success and it is important that the plan that is developed make sense both for your business and your sales staff.
There seems to be a mindset among many sales people that they are entitled to a larger percentage of a given sale than they actually deserve. Unfortunately a number of businesses have made the critical mistake of overcompensating sales people in an effort to motivate them to higher levels of performance. When they discover that this rarely has the desired impact, they change the plan only leading to an alienation of the sales force.
Conversely, some businesses have taken a very conservative approach to compensating sales people and quickly discovered that underpaying sales people leads to high turnover, inadequate performance and low morale. Striking a balance between paying too much and too little is one of the challenges inherent in the process of developing of a sound sales compensation plan.
Business owners and managers must avoid "dabbling" in sales compensation if they are to arrive at a plan that works well for all involved. It takes a fair amount of thought and a lot of number crunching to arrive at a sales compensation plan that avoids as many pitfalls as possible and establishes internal equity within the sales force. In other words, the plan will end up being a true pay for performance plan that rewards sales staff for their productivity in terms of dollars generated.
There are many variations of sales compensation plans that will work well. Combinations of base salary, commission, and bonus usually work well as long as the numbers involved don't under or overcompensate the sales force. And the plan must be simple enough to both understand and administer.
As a manager of sales people, it is very important to understand that sales people will almost always tell you that they are motivated by a large sales commission and/or bonus percentage. In reality, most sales people will perform as well at reasonable numbers as they will at inflated numbers.
There are a few exceptions to this, but generally speaking, effort expended is not affected greatly by moving commissions or bonuses up unless those commissions and bonuses are too low to begin with. In fact, it can be argued that overpaying sales people actually causes a reduction in performance for many sales people because they don't have to work as hard to achieve strong compensation levels. In other words, they end up being compensated very well for underperforming. And that is the last thing that should result from your sales compensation plan.
The term "at risk compensation" is an important one in the context of sales compensation plans. "At risk compensation" is nothing more than that amount of potential compensation that is not guaranteed in any way, but is associated with the level of performance. Some portion of a sound sales compensation plan must be allocated to at risk compensation.
But why is this important? It is important because, very simply, you want to create a mentality among your sales force that they must work hard and perform at high levels each and every day in order to earn enough money to meet their immediate needs.
Some sales compensation plans have been developed around a salary only component. This type of plan is generally not recommended because there is nothing really at risk from a compensation standpoint. Sales people need to understand that in order to achieve sufficient compensation levels, they must generate acceptable sales numbers at a minimum. How you develop the "at risk" components of your plan is one of the questions that you will face.
Generally speaking, we recommend that between 17 and 26 percent of the gross profit generated by a sales person in any given sales year be paid to them. This range includes any base salary and all at risk compensation. For very high performers, the top end of this range can be expanded some, but it must be built into the plan initially. When businesses routinely give 30% or more of the gross profit generated from a sale back to the sales person, that leaves too little to contribute to other expenses of most businesses.
In developing a sales compensation plan, it is generally wise to think very carefully about what sales levels you expect from your sales force given their territory or market potentials. In other words, what are the sales objectives by representative? We strongly discourage basing any commissions or bonuses on the revenue levels generated by sales people.
Our preference, whenever possible, is to base sales compensation plans on the gross profit each representative will generate. Therefore, any specific commission and/or bonus plan will be based on gross profit levels for each person in your sales force rather than gross sales dollars generated.
Some businesses prefer a plan based on gross dollars generated. This can work, but it is critical that the sales force not be able to control pricing or discounts. When the incentive is based on gross dollars, any price or discount control allows too much room for negotiation to "get the deal". In that case, the sales person wins and the company loses. It must be a win-win situation.
A simple plan involves one commission and/or bonus rate across all gross profit levels. More complex plans use tiers for any of the at risk components. To illustrate, a simple plan might consist of a base salary of $25,000 per year plus 10% of the gross profit generated plus a year-end bonus of $5,000 if the representative generates at least $350,000 worth of gross profit in that sales year. Total compensation in this example would be $65,000 (assuming the representative hit exactly the $350,000 gross profit level). This amounts to 18.6 percent of the gross profit generated being paid out to the representative.
A more complex plan might look like this; a base salary of $25,000; a commission schedule of 8% for monthly gross profit up to $17,000, 10% for monthly gross profit between $17,001 and $25,000 and 14% for monthly gross profit in excess of $25,000; a bonus plan that would pay at year-end an additional 3% of gross profit if the representative hits a minimum of $400,000 in gross profit. For illustration purposes, let's assume that the sales rep hit exactly $30,000 in gross profit each month or $360,000 in total gross profit for the year. The calculation of the annual compensation would look like this:
Base salary: $25,000
Commission: ($204,000 x .10) + ($96000 x .12) + ($60,000 x .14) = $40,320
Bonus: $0 since the representative did not reach the $400,000 level
Total Compensation: $65,320 or 18.14% of gross profit generated
(In this example, we show an annual commission payout for illustration purposes only, but monthly commissions are almost always the rule. The sales commission number shown above would actually be paid out over the course of the sales year.)
These simple examples are provided only to illustrate possible approaches to sales compensation. There are a number of ways to develop a workable and effective sales compensation plan. The Sales Compensation Handbook is a widely used guide offered through mybusinessbooks.com. This handbook explains and illustrates various ways to create a sales compensation plan that helps increase sales and maximize productivity.
There seems to be a mindset among many sales people that they are entitled to a larger percentage of a given sale than they actually deserve. Unfortunately a number of businesses have made the critical mistake of overcompensating sales people in an effort to motivate them to higher levels of performance. When they discover that this rarely has the desired impact, they change the plan only leading to an alienation of the sales force.
Conversely, some businesses have taken a very conservative approach to compensating sales people and quickly discovered that underpaying sales people leads to high turnover, inadequate performance and low morale. Striking a balance between paying too much and too little is one of the challenges inherent in the process of developing of a sound sales compensation plan.
Business owners and managers must avoid "dabbling" in sales compensation if they are to arrive at a plan that works well for all involved. It takes a fair amount of thought and a lot of number crunching to arrive at a sales compensation plan that avoids as many pitfalls as possible and establishes internal equity within the sales force. In other words, the plan will end up being a true pay for performance plan that rewards sales staff for their productivity in terms of dollars generated.
There are many variations of sales compensation plans that will work well. Combinations of base salary, commission, and bonus usually work well as long as the numbers involved don't under or overcompensate the sales force. And the plan must be simple enough to both understand and administer.
As a manager of sales people, it is very important to understand that sales people will almost always tell you that they are motivated by a large sales commission and/or bonus percentage. In reality, most sales people will perform as well at reasonable numbers as they will at inflated numbers.
There are a few exceptions to this, but generally speaking, effort expended is not affected greatly by moving commissions or bonuses up unless those commissions and bonuses are too low to begin with. In fact, it can be argued that overpaying sales people actually causes a reduction in performance for many sales people because they don't have to work as hard to achieve strong compensation levels. In other words, they end up being compensated very well for underperforming. And that is the last thing that should result from your sales compensation plan.
The term "at risk compensation" is an important one in the context of sales compensation plans. "At risk compensation" is nothing more than that amount of potential compensation that is not guaranteed in any way, but is associated with the level of performance. Some portion of a sound sales compensation plan must be allocated to at risk compensation.
But why is this important? It is important because, very simply, you want to create a mentality among your sales force that they must work hard and perform at high levels each and every day in order to earn enough money to meet their immediate needs.
Some sales compensation plans have been developed around a salary only component. This type of plan is generally not recommended because there is nothing really at risk from a compensation standpoint. Sales people need to understand that in order to achieve sufficient compensation levels, they must generate acceptable sales numbers at a minimum. How you develop the "at risk" components of your plan is one of the questions that you will face.
Generally speaking, we recommend that between 17 and 26 percent of the gross profit generated by a sales person in any given sales year be paid to them. This range includes any base salary and all at risk compensation. For very high performers, the top end of this range can be expanded some, but it must be built into the plan initially. When businesses routinely give 30% or more of the gross profit generated from a sale back to the sales person, that leaves too little to contribute to other expenses of most businesses.
In developing a sales compensation plan, it is generally wise to think very carefully about what sales levels you expect from your sales force given their territory or market potentials. In other words, what are the sales objectives by representative? We strongly discourage basing any commissions or bonuses on the revenue levels generated by sales people.
Our preference, whenever possible, is to base sales compensation plans on the gross profit each representative will generate. Therefore, any specific commission and/or bonus plan will be based on gross profit levels for each person in your sales force rather than gross sales dollars generated.
Some businesses prefer a plan based on gross dollars generated. This can work, but it is critical that the sales force not be able to control pricing or discounts. When the incentive is based on gross dollars, any price or discount control allows too much room for negotiation to "get the deal". In that case, the sales person wins and the company loses. It must be a win-win situation.
A simple plan involves one commission and/or bonus rate across all gross profit levels. More complex plans use tiers for any of the at risk components. To illustrate, a simple plan might consist of a base salary of $25,000 per year plus 10% of the gross profit generated plus a year-end bonus of $5,000 if the representative generates at least $350,000 worth of gross profit in that sales year. Total compensation in this example would be $65,000 (assuming the representative hit exactly the $350,000 gross profit level). This amounts to 18.6 percent of the gross profit generated being paid out to the representative.
A more complex plan might look like this; a base salary of $25,000; a commission schedule of 8% for monthly gross profit up to $17,000, 10% for monthly gross profit between $17,001 and $25,000 and 14% for monthly gross profit in excess of $25,000; a bonus plan that would pay at year-end an additional 3% of gross profit if the representative hits a minimum of $400,000 in gross profit. For illustration purposes, let's assume that the sales rep hit exactly $30,000 in gross profit each month or $360,000 in total gross profit for the year. The calculation of the annual compensation would look like this:
Base salary: $25,000
Commission: ($204,000 x .10) + ($96000 x .12) + ($60,000 x .14) = $40,320
Bonus: $0 since the representative did not reach the $400,000 level
Total Compensation: $65,320 or 18.14% of gross profit generated
(In this example, we show an annual commission payout for illustration purposes only, but monthly commissions are almost always the rule. The sales commission number shown above would actually be paid out over the course of the sales year.)
These simple examples are provided only to illustrate possible approaches to sales compensation. There are a number of ways to develop a workable and effective sales compensation plan. The Sales Compensation Handbook is a widely used guide offered through mybusinessbooks.com. This handbook explains and illustrates various ways to create a sales compensation plan that helps increase sales and maximize productivity.
If there is one problem that I have seen people run into whenever they start out trying to make money on the Internet, it is that they try to be everything to everyone. Somebody will come up to me and the conversation will start by them telling me that they put a website online and that they are ready to start making money. When I asked them what the website is about, they say a little bit of everything. They’re offering all kinds of items from cars to children’s toys and everything in between. Unfortunately, their Internet marketing career has ended long before it officially started.
The reason why this is the death stroke of any Internet marketing effort is because things are different on the Internet than they are in real life. In real life, somebody will walk into a store wanting to pick up an item, perhaps a DVD. On the way back to the entertainment section in order to pick up the DVD, they pass by some shoes and remember that they have wanted to pick up a pair of shoes for quite some time. They finally make it back to the DVD section, with their shoes in hand and then pick up the movie that they wanted. On their way out of the store, they remember that they needed some toilet paper for the house and then it while they are in the checkout line; they grab a pack of razors.
This may work well in real life at the Wal-Mart but it is not going to work on the Internet at all. The Internet is very focused and that is why you need to make sure that your website is focused as well. If somebody does a search on Google and is looking for your product or service, they are not going to be interested in coming to your website and buying something other than what they were searching for. You need to theme your website and then you need to attract targeted traffic to your website in order to make sales.
The beauty about this is that once you have it set up, it will continue to work on autopilot indefinitely. This is especially the case if you use affiliate programs in order to fill the products that people are buying. All that is necessary for you to do is to start a stream of traffic coming to your website that is very targeted to whatever it is that you’re offering. They will continue to come, day after day and your income will truly be one that is passive.
Does this mean that there is never anything else that you’re going to need to do? No, any business needs work. The simple fact of the matter is, however, it is not going to take all of your time in order to keep things going. Set your website up properly in the first place and you will have a recurring source of income for a long time to come.
The reason why this is the death stroke of any Internet marketing effort is because things are different on the Internet than they are in real life. In real life, somebody will walk into a store wanting to pick up an item, perhaps a DVD. On the way back to the entertainment section in order to pick up the DVD, they pass by some shoes and remember that they have wanted to pick up a pair of shoes for quite some time. They finally make it back to the DVD section, with their shoes in hand and then pick up the movie that they wanted. On their way out of the store, they remember that they needed some toilet paper for the house and then it while they are in the checkout line; they grab a pack of razors.
This may work well in real life at the Wal-Mart but it is not going to work on the Internet at all. The Internet is very focused and that is why you need to make sure that your website is focused as well. If somebody does a search on Google and is looking for your product or service, they are not going to be interested in coming to your website and buying something other than what they were searching for. You need to theme your website and then you need to attract targeted traffic to your website in order to make sales.
The beauty about this is that once you have it set up, it will continue to work on autopilot indefinitely. This is especially the case if you use affiliate programs in order to fill the products that people are buying. All that is necessary for you to do is to start a stream of traffic coming to your website that is very targeted to whatever it is that you’re offering. They will continue to come, day after day and your income will truly be one that is passive.
Does this mean that there is never anything else that you’re going to need to do? No, any business needs work. The simple fact of the matter is, however, it is not going to take all of your time in order to keep things going. Set your website up properly in the first place and you will have a recurring source of income for a long time to come.
If there is one problem that I have seen people run into whenever they start out trying to make money on the Internet, it is that they try to be everything to everyone. Somebody will come up to me and the conversation will start by them telling me that they put a website online and that they are ready to start making money. When I asked them what the website is about, they say a little bit of everything. They’re offering all kinds of items from cars to children’s toys and everything in between. Unfortunately, their Internet marketing career has ended long before it officially started.
The reason why this is the death stroke of any Internet marketing effort is because things are different on the Internet than they are in real life. In real life, somebody will walk into a store wanting to pick up an item, perhaps a DVD. On the way back to the entertainment section in order to pick up the DVD, they pass by some shoes and remember that they have wanted to pick up a pair of shoes for quite some time. They finally make it back to the DVD section, with their shoes in hand and then pick up the movie that they wanted. On their way out of the store, they remember that they needed some toilet paper for the house and then it while they are in the checkout line; they grab a pack of razors.
This may work well in real life at the Wal-Mart but it is not going to work on the Internet at all. The Internet is very focused and that is why you need to make sure that your website is focused as well. If somebody does a search on Google and is looking for your product or service, they are not going to be interested in coming to your website and buying something other than what they were searching for. You need to theme your website and then you need to attract targeted traffic to your website in order to make sales.
The beauty about this is that once you have it set up, it will continue to work on autopilot indefinitely. This is especially the case if you use affiliate programs in order to fill the products that people are buying. All that is necessary for you to do is to start a stream of traffic coming to your website that is very targeted to whatever it is that you’re offering. They will continue to come, day after day and your income will truly be one that is passive.
Does this mean that there is never anything else that you’re going to need to do? No, any business needs work. The simple fact of the matter is, however, it is not going to take all of your time in order to keep things going. Set your website up properly in the first place and you will have a recurring source of income for a long time to come.
The reason why this is the death stroke of any Internet marketing effort is because things are different on the Internet than they are in real life. In real life, somebody will walk into a store wanting to pick up an item, perhaps a DVD. On the way back to the entertainment section in order to pick up the DVD, they pass by some shoes and remember that they have wanted to pick up a pair of shoes for quite some time. They finally make it back to the DVD section, with their shoes in hand and then pick up the movie that they wanted. On their way out of the store, they remember that they needed some toilet paper for the house and then it while they are in the checkout line; they grab a pack of razors.
This may work well in real life at the Wal-Mart but it is not going to work on the Internet at all. The Internet is very focused and that is why you need to make sure that your website is focused as well. If somebody does a search on Google and is looking for your product or service, they are not going to be interested in coming to your website and buying something other than what they were searching for. You need to theme your website and then you need to attract targeted traffic to your website in order to make sales.
The beauty about this is that once you have it set up, it will continue to work on autopilot indefinitely. This is especially the case if you use affiliate programs in order to fill the products that people are buying. All that is necessary for you to do is to start a stream of traffic coming to your website that is very targeted to whatever it is that you’re offering. They will continue to come, day after day and your income will truly be one that is passive.
Does this mean that there is never anything else that you’re going to need to do? No, any business needs work. The simple fact of the matter is, however, it is not going to take all of your time in order to keep things going. Set your website up properly in the first place and you will have a recurring source of income for a long time to come.
Some careful thought before grabbing web hosting and launching a site will increase the chances that you get ranked this month rather thank next year.
It’s also helps increase the chances that you end up on the first page or two rather than down in traffic-less purgatory.
So what’s the secret to a good URL?
Getting Some Google Love
There’s some debate as to whether a keyword-based URL still has the same benefit. It’s certainly possible that Google has lowered the impact this strategy has.
But for now it still works at least to some degree. I say, if it give you one more leg up then why not do it. In my experience it really helps.
How to Find a URL When All the Good Ones are Taken
When we started Internet Business Mastery, we knew we wanted to rank for the phrase internet business. We included it in our brand name as well as our web address.Before launching my podcasting site, I figured out the top phrase that people searched for in my niche was how to podcast.
The ideal URL for this phrase would have been HowToPodcast.com. Sadly, that was already taken. This will often be the case for hot keyword phrases.
Fortunately you get the same benefit even if you add a word to the end of the phrase. For example, we added the word mastery to Internet business to get InternetBusinessMastery.com.
For my podcasting site I added the word tutorial to how to podcast. You might notice this gave me a URL that targeted two phrases: how to podcast and podcast tutorial. So my URL is: How-To-Podcast-Tutorial.com.
To Hyphenate or Not to Hyphenate
The bottom line is don’t use hyphens. It’s seems to hinder more than help now.
But What About the Brand?
Incidentally, these sites are are all from Internet Business Mastery students.
None of these addresses contain a primary keyword phrase for the purpose of ranking. Rather, the site creators have gone for catchy brand-based names.
In the last post I talked about three money-making models: ads, affiliate and original products. If your plan is to build an authoritative site that is a top resource in your niche, then it’s entirely valid (and maybe even better) to choose a URL that has brand power.
But if the goal is to get fast traffic for a micro-niche site that makes money from AdSense or other ads, then a keyword-based web address is much more important.
The reason is that it’s not likely to be worth your time to do other traffic generation. So it’s important to stack every search engine factor in your favor early on to get faster cash flow.
So when choosing your URL keep in mind the long-term goals of your site.
An ideal URL is a hybrid of the brand and keyword approach. InternetBusinessMastery.com is an example of this. It’s a strong brand name in addition to being keyword-based.
URL Selection Action Guide
Action Item: Here’s the process for picking the best URL for your niche site.- Decide what your long-term goals are for the site
- Choose whether it’s more important to have a keyword-based or brand-based URL for the site
- Choose the primary keyword phrase that you would like to target
- Brainstorm web address names that contain your keyword and find one that is available OR brainstorm brand name ideas for your site
- Choose your URL and register it with hosting for your site
A great tool for checking available domains quickly is Instant Domain Search.
And now I want to hear from you. How do you choose the right URL for a new site? What questions do you have about finding the best URL? Sound off in the comments below.
Some careful thought before grabbing web hosting and launching a site will increase the chances that you get ranked this month rather thank next year.
It’s also helps increase the chances that you end up on the first page or two rather than down in traffic-less purgatory.
So what’s the secret to a good URL?
Getting Some Google Love
There’s some debate as to whether a keyword-based URL still has the same benefit. It’s certainly possible that Google has lowered the impact this strategy has.
But for now it still works at least to some degree. I say, if it give you one more leg up then why not do it. In my experience it really helps.
How to Find a URL When All the Good Ones are Taken
When we started Internet Business Mastery, we knew we wanted to rank for the phrase internet business. We included it in our brand name as well as our web address.Before launching my podcasting site, I figured out the top phrase that people searched for in my niche was how to podcast.
The ideal URL for this phrase would have been HowToPodcast.com. Sadly, that was already taken. This will often be the case for hot keyword phrases.
Fortunately you get the same benefit even if you add a word to the end of the phrase. For example, we added the word mastery to Internet business to get InternetBusinessMastery.com.
For my podcasting site I added the word tutorial to how to podcast. You might notice this gave me a URL that targeted two phrases: how to podcast and podcast tutorial. So my URL is: How-To-Podcast-Tutorial.com.
To Hyphenate or Not to Hyphenate
The bottom line is don’t use hyphens. It’s seems to hinder more than help now.
But What About the Brand?
Incidentally, these sites are are all from Internet Business Mastery students.
None of these addresses contain a primary keyword phrase for the purpose of ranking. Rather, the site creators have gone for catchy brand-based names.
In the last post I talked about three money-making models: ads, affiliate and original products. If your plan is to build an authoritative site that is a top resource in your niche, then it’s entirely valid (and maybe even better) to choose a URL that has brand power.
But if the goal is to get fast traffic for a micro-niche site that makes money from AdSense or other ads, then a keyword-based web address is much more important.
The reason is that it’s not likely to be worth your time to do other traffic generation. So it’s important to stack every search engine factor in your favor early on to get faster cash flow.
So when choosing your URL keep in mind the long-term goals of your site.
An ideal URL is a hybrid of the brand and keyword approach. InternetBusinessMastery.com is an example of this. It’s a strong brand name in addition to being keyword-based.
URL Selection Action Guide
Action Item: Here’s the process for picking the best URL for your niche site.- Decide what your long-term goals are for the site
- Choose whether it’s more important to have a keyword-based or brand-based URL for the site
- Choose the primary keyword phrase that you would like to target
- Brainstorm web address names that contain your keyword and find one that is available OR brainstorm brand name ideas for your site
- Choose your URL and register it with hosting for your site
A great tool for checking available domains quickly is Instant Domain Search.
And now I want to hear from you. How do you choose the right URL for a new site? What questions do you have about finding the best URL? Sound off in the comments below.
I don’t know about you, but I’ve been quite happy with Google Analytics for a long time; years, in fact. I’m not alone. According to Builtwith.com, there are almost 14.8 million websites on the Internet using the dominant web traffic reporting tool. Automating delivery of insightful web traffic reports has always been an easy way to add value for my web clients—until now.With the forced migration to the new Google Analytics (G5) platform, it seems the days of “easy” are gone, at least temporarily. The following comments are taken straight from the Google Analytics product forum pages. It seems there is no shortage of frustration over the recent “improvements” made to the popular analytics tool.
“As a webmaster for multiple companies I lived in fear for the day the old Google Analytics version was deleted. Today is the day. What a nightmare—not in one single overview my accounts with statistical info on site visitors in one overview! New versions should be better. As far as I see on the Internet all people want this old dashboard functionality and people would pay to keep the old version of Analytics live.” ~TopTravelAngebot
“Why has the snapshot dashboard been removed!? ABSOLUTELY RIDICULOUS! :( Any solutions to this AT ALL?” ~Falin
“I’m googling (or binging) around frantically trying to find an easy method for using New Google Analytics (which I hate) to send clients a condensed 6-page summarized PDF of their analytical data, rather than having to schedule for them 6 separate emails. [Has] anyone found any methods, or simpler ways of doing this?” ~Daniel1980
“Bring back the old version. Is anyone listening?” ~chanback
Oh, and a comment or two appear to have gone the way of “This message has been deleted.” I’m betting those folks simply had trouble reigning in their explicatives. Just guessing.
We’ve Been Here Before
Well, for better or for worse, Google has released a beta product onto the world and then summarily forced the market into using it. Hmm. Let’s see. Do any other companies have a reputation for doing this? Oh, I know one! Hint: Begins with an “M” and rhymes with “Bike-ro-soft”.Is Anyone Listening?
Sure, maybe more focus group testing could have been completed prior to forcing this migration. Though, as one writer above asks, “Is anyone listening?” Maybe focus groups were had. Maybe the results never made it to the design and development teams? Or, maybe the focus groups all consisted of Google software engineers? We may never know.The new Google Analytics is a very powerful traffic reporting tool, no doubt. In fact, from a software engineer’s point of view, likely it’s the difference between a howitzer and a peashooter. Unfortunately, software engineers are not the primary demographic using Google Analytics.
Beyond individual site owners, I have to believe web and marketing professionals make up the next largest user base. So if your trusty peashooter was doing a great job for you and you were forced to trade it in for a quirky howitzer that blows your productivity out of the water, how would you feel?
Free? Really?
“Suck it up,” you might say. “Google Analytics is a free, powerful analytical tool and one of the best available.” I would say you’re right about “powerful” and “one of the best” but it’s certainly not free. After all, Google gets paid volumes in inside traffic statistics—your traffic statistics.By opening your website to Google, the search engine goliath gains intimate knowledge into what’s hot and what’s not. You think click-throughs, backlinks and keyword relevancy (and over 100 other metrics) is all Google uses to determine the popularity and position of your site? If you could produce a powerful tool that served others while increasing your own ability to serve others, wouldn’t you do just that?
Afterglow
After years of comfortable reliability, maybe we just needed this flounder by Google to help wake us out of our satisfied stupors. Traffic reporting, for me, has always been an easy part of the web service business. You could always rely on those Analytics reports going out, and you could see who was performing, at a glance.Yes, the new Google Analytics offers more power in its custom reporting abilities, but it seems they forgot about the user experience this time around. If they can bring back some of the core functionality and smarter workflow (a global dashboard, default report templates that are as complete as the old default report, a single email for delivering those reports, maps in those emailed reports, etc.), I think they could continue their winning streak with Analytics.
Will Google listen to the marketplace? Will they fix the howitzer? Only time will tell.
In support of your efforts,
Matt
P.S.- One of the items you’ll need help with in the new Google Analytics is reconstructing your reports. Here I’ve collected several Google Analytics report templates for you to use. Enjoy!
————–
Matt Schoenherr is a husband, father of four, marketing consultant and founder of Marketing Ideas 101. As a student, teacher and published author, Matt supports the worthy goals of service and commerce in the small business and nonprofit communities. Creative marketing ideas and marketing strategies may be found at MarketingIdeas101.com.References
Builtwith.com. Websites Using Google Analytics. Retrieved from http://trends.builtwith.com/websitelist/Google-Analytics.
Google Product Forums. Google Analytics. Old version Google analytics dashboard. Retrieved from http://productforums.google.com/forum/#!topic/analytics/oMqoYOOYDJM.
I don’t know about you, but I’ve been quite happy with Google Analytics for a long time; years, in fact. I’m not alone. According to Builtwith.com, there are almost 14.8 million websites on the Internet using the dominant web traffic reporting tool. Automating delivery of insightful web traffic reports has always been an easy way to add value for my web clients—until now.With the forced migration to the new Google Analytics (G5) platform, it seems the days of “easy” are gone, at least temporarily. The following comments are taken straight from the Google Analytics product forum pages. It seems there is no shortage of frustration over the recent “improvements” made to the popular analytics tool.
“As a webmaster for multiple companies I lived in fear for the day the old Google Analytics version was deleted. Today is the day. What a nightmare—not in one single overview my accounts with statistical info on site visitors in one overview! New versions should be better. As far as I see on the Internet all people want this old dashboard functionality and people would pay to keep the old version of Analytics live.” ~TopTravelAngebot
“Why has the snapshot dashboard been removed!? ABSOLUTELY RIDICULOUS! :( Any solutions to this AT ALL?” ~Falin
“I’m googling (or binging) around frantically trying to find an easy method for using New Google Analytics (which I hate) to send clients a condensed 6-page summarized PDF of their analytical data, rather than having to schedule for them 6 separate emails. [Has] anyone found any methods, or simpler ways of doing this?” ~Daniel1980
“Bring back the old version. Is anyone listening?” ~chanback
Oh, and a comment or two appear to have gone the way of “This message has been deleted.” I’m betting those folks simply had trouble reigning in their explicatives. Just guessing.
We’ve Been Here Before
Well, for better or for worse, Google has released a beta product onto the world and then summarily forced the market into using it. Hmm. Let’s see. Do any other companies have a reputation for doing this? Oh, I know one! Hint: Begins with an “M” and rhymes with “Bike-ro-soft”.Is Anyone Listening?
Sure, maybe more focus group testing could have been completed prior to forcing this migration. Though, as one writer above asks, “Is anyone listening?” Maybe focus groups were had. Maybe the results never made it to the design and development teams? Or, maybe the focus groups all consisted of Google software engineers? We may never know.The new Google Analytics is a very powerful traffic reporting tool, no doubt. In fact, from a software engineer’s point of view, likely it’s the difference between a howitzer and a peashooter. Unfortunately, software engineers are not the primary demographic using Google Analytics.
Beyond individual site owners, I have to believe web and marketing professionals make up the next largest user base. So if your trusty peashooter was doing a great job for you and you were forced to trade it in for a quirky howitzer that blows your productivity out of the water, how would you feel?
Free? Really?
“Suck it up,” you might say. “Google Analytics is a free, powerful analytical tool and one of the best available.” I would say you’re right about “powerful” and “one of the best” but it’s certainly not free. After all, Google gets paid volumes in inside traffic statistics—your traffic statistics.By opening your website to Google, the search engine goliath gains intimate knowledge into what’s hot and what’s not. You think click-throughs, backlinks and keyword relevancy (and over 100 other metrics) is all Google uses to determine the popularity and position of your site? If you could produce a powerful tool that served others while increasing your own ability to serve others, wouldn’t you do just that?
Afterglow
After years of comfortable reliability, maybe we just needed this flounder by Google to help wake us out of our satisfied stupors. Traffic reporting, for me, has always been an easy part of the web service business. You could always rely on those Analytics reports going out, and you could see who was performing, at a glance.Yes, the new Google Analytics offers more power in its custom reporting abilities, but it seems they forgot about the user experience this time around. If they can bring back some of the core functionality and smarter workflow (a global dashboard, default report templates that are as complete as the old default report, a single email for delivering those reports, maps in those emailed reports, etc.), I think they could continue their winning streak with Analytics.
Will Google listen to the marketplace? Will they fix the howitzer? Only time will tell.
In support of your efforts,
Matt
P.S.- One of the items you’ll need help with in the new Google Analytics is reconstructing your reports. Here I’ve collected several Google Analytics report templates for you to use. Enjoy!
————–
Matt Schoenherr is a husband, father of four, marketing consultant and founder of Marketing Ideas 101. As a student, teacher and published author, Matt supports the worthy goals of service and commerce in the small business and nonprofit communities. Creative marketing ideas and marketing strategies may be found at MarketingIdeas101.com.References
Builtwith.com. Websites Using Google Analytics. Retrieved from http://trends.builtwith.com/websitelist/Google-Analytics.
Google Product Forums. Google Analytics. Old version Google analytics dashboard. Retrieved from http://productforums.google.com/forum/#!topic/analytics/oMqoYOOYDJM.
Are you insured for driving on the Continent?
Millions of people take their car onto the Continent every summer, but how many of them have adequate car insurance for European travel? Most drivers assume their insurance policy is the same in Europe as in the UK. But it could be a costly mistake as many insurers do not automatically offer comprehensive cover abroad. Experts estimate that one in ten motorists sustain damage to their car while driving abroad, so it is important to get an appropriate European car insurance policy before leaving the UK.Is it illegal to drive in Europe without comprehensive cover?
If your car is insured in the UK, you can legally drive in most European countries, including countries outside the EU, such as Switzerland. But you will only have the minimum legal level of cover. A green card, or International Certificate of Motor Insurance, is no longer a legal requirement within the EU, but it can be useful because it proves you have the minimum insurance cover required to drive on European roads. You can usually get a green card from your insurer, but it is not a substitute for insurance. In some countries, it would not even provide as much protection as third party cover in the UK.What does European Car Insurance cover?
If you plan to drive in Europe, it's a good idea to find a policy that offers the same level of cover as in the UK. But no two policies are exactly the same, so you need to read the small print carefully. Remember too that the cheapest policy is not necessarily the best.Insurers will usually cover motoring abroad only for a certain number of days during the policy year, often up to 90 days. But the limits vary between insurers, so check that the cover is adequate. If you expect to exceed the limit, you might be able to negotiate a deal for extended European car insurance cover.
Some insurers offer temporary or short term European car insurance that will typically cover your car for between one and 28 days. If you plan only one, short motoring trip to the Continent, temporary cover might be cheaper than standard cover in Europe, but you should still scrutinise the policy details.
You should also make sure that the policy includes the countries you intend to visit. Some insurance policies, for example, will only cover countries that belong to the European Union. Don't forget to include countries that you might drive through en route to your destination.
Does my policy include breakdown cover?
Breakdown cover in Europe is not automatically added to a European policy, even if it is standard on your UK insurance. However, most experts recommend European breakdown cover as it can be a lifeline to a stranded motorist.Is European motor insurance expensive?
The cost of European car insurance depends on the insurer, the car and the level of cover provided. But repairs and replacement parts for your car can be more expensive abroad - and some insurers charge a higher premium to offset the risk. MoneySupermarket.com compares deals with leading insurers to help European car insurance customers find cheaper quotes online.Are you insured for driving on the Continent?
Millions of people take their car onto the Continent every summer, but how many of them have adequate car insurance for European travel? Most drivers assume their insurance policy is the same in Europe as in the UK. But it could be a costly mistake as many insurers do not automatically offer comprehensive cover abroad. Experts estimate that one in ten motorists sustain damage to their car while driving abroad, so it is important to get an appropriate European car insurance policy before leaving the UK.Is it illegal to drive in Europe without comprehensive cover?
If your car is insured in the UK, you can legally drive in most European countries, including countries outside the EU, such as Switzerland. But you will only have the minimum legal level of cover. A green card, or International Certificate of Motor Insurance, is no longer a legal requirement within the EU, but it can be useful because it proves you have the minimum insurance cover required to drive on European roads. You can usually get a green card from your insurer, but it is not a substitute for insurance. In some countries, it would not even provide as much protection as third party cover in the UK.What does European Car Insurance cover?
If you plan to drive in Europe, it's a good idea to find a policy that offers the same level of cover as in the UK. But no two policies are exactly the same, so you need to read the small print carefully. Remember too that the cheapest policy is not necessarily the best.Insurers will usually cover motoring abroad only for a certain number of days during the policy year, often up to 90 days. But the limits vary between insurers, so check that the cover is adequate. If you expect to exceed the limit, you might be able to negotiate a deal for extended European car insurance cover.
Some insurers offer temporary or short term European car insurance that will typically cover your car for between one and 28 days. If you plan only one, short motoring trip to the Continent, temporary cover might be cheaper than standard cover in Europe, but you should still scrutinise the policy details.
You should also make sure that the policy includes the countries you intend to visit. Some insurance policies, for example, will only cover countries that belong to the European Union. Don't forget to include countries that you might drive through en route to your destination.
Does my policy include breakdown cover?
Breakdown cover in Europe is not automatically added to a European policy, even if it is standard on your UK insurance. However, most experts recommend European breakdown cover as it can be a lifeline to a stranded motorist.Is European motor insurance expensive?
The cost of European car insurance depends on the insurer, the car and the level of cover provided. But repairs and replacement parts for your car can be more expensive abroad - and some insurers charge a higher premium to offset the risk. MoneySupermarket.com compares deals with leading insurers to help European car insurance customers find cheaper quotes online.How young female drivers can save money on their car insurance
Young drivers car insurance premiums are rather expensive compared to the those offered to older motorists- as you might have noticed if you have compared the quotes offered through various insurance companies.This isn't about prejudice; it's about statistics. Just one in eight British drivers is under 25, but they are involved in one in four fatal crashes, according to Brake, the road safety organisation. In other words, young drivers cost insurers more in claims, so insurers charge young drivers more in premiums.
Young female car insurance market
But it's not all doom and gloom - at least not when it comes to car insurance for young female drivers. Your male friends might not agree, but women are actually better drivers than men. Government figures show that men are responsible for more than 92% of UK driving convictions and 98% of all convictions for dangerous driving. Men therefore tend to pay more for their car insurance than women.You will find more specific guides for young females in these age bands in our guide to car insurance for young drivers.
The impact of new regulations on car insurance for young female drivers
So far, so good. However, there is a lot of speculation that the cost of car insurance for women could rise by the end of next year because of an anti-discrimination ruling by the European Court of Justice that bans insurers from charging men and women different premiums because of their gender. The new rules will come into effect in December 2012 when young female car insurance premiums could jump by 25% to 30%.The timing could not be worse with 1.3 million motorists having already been driven off the road in the past 12 months because of the rising cost of car ownership, according to Sainsbury's Finance.
Find cheap car insurance for young female drivers
So it's more important than ever for young women drivers to choose the right policy at the right price. One of the easiest ways to drive down premiums is to shop around using MoneySupermarket's online comparison service. A number of specialist firms target women drivers with the promise of cheaper premiums - and the offers can be tempting. But it's always wise to check their quotes against the mainstream insurers.Women might statistically be better drivers than men, but there's always room for improvement. If you want to enhance your driving skills - and pay less for your car insurance - you could consider either the Driving Standard Agency's Pass Plus course, or the Institute of Advanced Motorists Advanced Driving Test.
The courses cover various aspects of motoring, including motorway driving and night driving, and aim to promote greater confidence and road safety. You should also get a discount on your premium of as much as 10%. The courses aren't free, but the reduction in the price of your car insurance is often enough to cover the course fee.
Young female drivers can also benefit from the experience of an older motorist. Let's say your Mum has a clean driving record. If you put her on your policy as an additional named driver, she could bring down the price of the premium. Just be careful not to put your Mum down as the main driver, with you as an additional driver. It's known as fronting and is illegal.
If your car isn't worth very much you could reduce the cost of car insurance for young female drivers further by cutting your level of cover. Most drivers take out comprehensive car insurance, but the minimum legal requirement is third party only. A third party policy covers any damage or injury to other people or their property, but will not pay out for any damage to your own car, so is not appropriate for everyone. You might also find that it's no cheaper than comprehensive insurance.
You can find more ways to cut the cost of car insurance for young female drivers with MoneySupermarket.com's money saving tips.
Pay as you go car insurance for young drivers
Pay as you go insurance can be ideal for young female drivers because it rewards careful motorists who cover a limited number of miles. If you take out as pay as you go policy, the insurer will install a tracking device in your car. The 'black box' then monitors not only how many miles you drive, but also whether you drive at night or rush hour, on country lanes or fast motorways. The technology can even record your braking and acceleration to gauge how safely you drive.The policies all work slightly differently but you basically pay for the miles you drive, rather like a pay as you go mobile phone. You can also earn bonus miles, or a reduction in premiums, if you abide by certain conditions, perhaps agreeing not to take the car out at night when a crash is more likely.
If you can avoid any accidents, you can hopefully also avoid any claims and so build up a no claims discount (NCD). Insurers reward careful drivers with a discount on their premiums. The discounts add up until after five consecutive claim-free years, you could cut your premium by more than 50%.
How young female drivers can save money on their car insurance
Young drivers car insurance premiums are rather expensive compared to the those offered to older motorists- as you might have noticed if you have compared the quotes offered through various insurance companies.This isn't about prejudice; it's about statistics. Just one in eight British drivers is under 25, but they are involved in one in four fatal crashes, according to Brake, the road safety organisation. In other words, young drivers cost insurers more in claims, so insurers charge young drivers more in premiums.
Young female car insurance market
But it's not all doom and gloom - at least not when it comes to car insurance for young female drivers. Your male friends might not agree, but women are actually better drivers than men. Government figures show that men are responsible for more than 92% of UK driving convictions and 98% of all convictions for dangerous driving. Men therefore tend to pay more for their car insurance than women.You will find more specific guides for young females in these age bands in our guide to car insurance for young drivers.
The impact of new regulations on car insurance for young female drivers
So far, so good. However, there is a lot of speculation that the cost of car insurance for women could rise by the end of next year because of an anti-discrimination ruling by the European Court of Justice that bans insurers from charging men and women different premiums because of their gender. The new rules will come into effect in December 2012 when young female car insurance premiums could jump by 25% to 30%.The timing could not be worse with 1.3 million motorists having already been driven off the road in the past 12 months because of the rising cost of car ownership, according to Sainsbury's Finance.
Find cheap car insurance for young female drivers
So it's more important than ever for young women drivers to choose the right policy at the right price. One of the easiest ways to drive down premiums is to shop around using MoneySupermarket's online comparison service. A number of specialist firms target women drivers with the promise of cheaper premiums - and the offers can be tempting. But it's always wise to check their quotes against the mainstream insurers.Women might statistically be better drivers than men, but there's always room for improvement. If you want to enhance your driving skills - and pay less for your car insurance - you could consider either the Driving Standard Agency's Pass Plus course, or the Institute of Advanced Motorists Advanced Driving Test.
The courses cover various aspects of motoring, including motorway driving and night driving, and aim to promote greater confidence and road safety. You should also get a discount on your premium of as much as 10%. The courses aren't free, but the reduction in the price of your car insurance is often enough to cover the course fee.
Young female drivers can also benefit from the experience of an older motorist. Let's say your Mum has a clean driving record. If you put her on your policy as an additional named driver, she could bring down the price of the premium. Just be careful not to put your Mum down as the main driver, with you as an additional driver. It's known as fronting and is illegal.
If your car isn't worth very much you could reduce the cost of car insurance for young female drivers further by cutting your level of cover. Most drivers take out comprehensive car insurance, but the minimum legal requirement is third party only. A third party policy covers any damage or injury to other people or their property, but will not pay out for any damage to your own car, so is not appropriate for everyone. You might also find that it's no cheaper than comprehensive insurance.
You can find more ways to cut the cost of car insurance for young female drivers with MoneySupermarket.com's money saving tips.
Pay as you go car insurance for young drivers
Pay as you go insurance can be ideal for young female drivers because it rewards careful motorists who cover a limited number of miles. If you take out as pay as you go policy, the insurer will install a tracking device in your car. The 'black box' then monitors not only how many miles you drive, but also whether you drive at night or rush hour, on country lanes or fast motorways. The technology can even record your braking and acceleration to gauge how safely you drive.The policies all work slightly differently but you basically pay for the miles you drive, rather like a pay as you go mobile phone. You can also earn bonus miles, or a reduction in premiums, if you abide by certain conditions, perhaps agreeing not to take the car out at night when a crash is more likely.
If you can avoid any accidents, you can hopefully also avoid any claims and so build up a no claims discount (NCD). Insurers reward careful drivers with a discount on their premiums. The discounts add up until after five consecutive claim-free years, you could cut your premium by more than 50%.
Young drivers: how to save money on your car insurance
If you thought your driving test was difficult, wait until you try and buy car insurance - that's when things could start to get really tricky.Not only are young drivers forced to pay significantly more for car insurance than older and more experienced motorists, but more than half of insurance companies simply refuse to cover teenage drivers altogether due to the higher risk that they represent.
Don't be tempted to drive without car insurance, though. The government estimates that 1.4m motorists do not have insurance cover, but they risk a fine of up to £5,000 and six to eight points on their licence.
And if you are the main driver or registered keeper of a car, do not insure the car in your parents' name and add yourself to the policy as a named driver. Known as 'fronting', this is a form of insurance fraud that will invalidate your policy and could lead to a charge of driving without car insurance.
Why are young driver car insurance premiums so high?
Car insurance for young drivers is disproportionately high compared to the national average because they are quite simply more risky. Motorists aged between 17 and 25 are responsible for one third of road fatalities in the UK. And one in five drivers is involved in a crash during the first 12 months behind the wheel. Statistics also show that young drivers are more likely to be the victim of theft, fire and vandalism resulting in insurance claims.How to find cheaper car insurance for young drivers
However, there are several ways that young drivers can reduce the price of their car insurance premiums.- A number of firms will fit a so-called 'black box' to your car to track your movements. It sounds a bit like 'Big Brother' but it can reduce young driver car insurance premiums because you will usually be rewarded if you drive a limited number of miles and if you avoid driving late at night, when most accidents are likely to occur.
- Buy a sensible car. Every new car is assigned to a car insurance group - and the lower the group, the lower the likely premium. So, it will be cheaper to insure a Fiat Punto than an Audi TT. You can find details of the car insurance groups on the website of the Association of British Insurers (www.abi.org.uk).
- Don't modify your car. Insurers don't like boy - or girl - racers and modifications such as turbo charging, rally lights, nitrous oxide kits will send your premium soaring.
- Consider taking the Driving Standards Agency's Pass Plus course, which gives extra tuition on night, motorway and inner city driving. You can take the course any time, although it is aimed at new drivers within the first year of passing their test. The course is made up of six modules and takes at least six hours. There is also a fee of about £150, but it is often worth the money as drivers who have successfully completed the course can earn discounts on their motor insurance of up to 35%.
- Shop around and compare young driver car insurance quotes. But make sure you compare like with like. A car insurance policy might be cheap because it does not offer many benefits.
- Don't assume third party insurance is the cheapest option. Many consumers purchasing car insurance for young drivers assume that third party cover will be the best value option as it is usually the cheapest car insurance you can buy. If damage another vehicle while driving it will cover the cost of the repair to that vehicle, but any damage to your car won't be covered so you'll have to pay for any repairs yourself. Fully comprehensive car insurance on the other hand, protects your car as well as any other vehicles.
- If you are driving your parents' car, it will be cheaper in the short term to add your name to their policy. However, if you take out your own insurance cover, you can start to build up a no claims discount, which will lead to even greater savings in the future. The NCD can be valuable, reducing the cost of cover by a third after one year. You can even add an older, more experienced family member with a clean driving record to your own policy and it could cut the cost.
- You stand a better chance of obtaining cheap car insurance for young drivers if you fit additional, approved security devices, such as an alarm or immobiliser system. If you can, keep your car in a locked garage when not in use, or off the street if possible.
- If you are prepared to pay a bigger voluntary excess, you might pay a lower insurance premium. But remember that the excess is the amount you contribute towards any claim, so it should be affordable.
- It can be convenient to spread the cost of your car insurance over monthly installments, but it is also more expensive because you will be charged extra. So try and pay up front, even if you have to ask your parents for a loan.
More young driver car insurance guides
MoneySupermarket.com recognises that young drivers have to pay significantly more than the average driver for car insurance. We have therefore crafted a number of young drivers car insurance guides to give more specific help in a variety of different situations.Obtaining your first car insurance policy can often be a very confusing period and it is very easy to make mistakes which could cost you serious amounts of money. Our guide looking at car insurance for 17 year olds aims to make the process as simple as possible. However, not everyone passes their test at 17 and 18 year old motorists could find themselves in a similar pickle. We have this covered as well with our guide looking at car insurance for 18 year olds.
19 year old motorists will also generally pay above the national average for car insurance as a result of them being statistically more likely to be involved in an accident and make a claim in the eyes of insurers than older drivers. Even 19 year olds with a couple of years no claims under their belts will be affected. Increase your chances of overcoming the odds by taking advantage of MoneySupermarket's guide to car insurance for 19 year olds.
For a thorough look at how people in these age bands can overcome statistics we have produced a teenage car insurance guide.
You might think you are in line for significant savings once you reach the age of 21. While it will normally work out cheaper than the sort of premiums that you could expect in your teenage years; 21 year olds can still expected disproportionately high premiums compared to older motorists on account of statistics. Take a look at our guide to car insurance for 21 year olds for more information on this.
25 year olds motorists are still classed as being young drivers and road safety organisation Brake recently revealed that one in four of the fatal and serious injuries sustained in crashes on the road involve motorists who are under the age of 25. Our page looking at car insurance for 25 year olds aims to prepare you for this; outlining potential cost saving methods and techniques.
Up until 21st December 2012 male motorists in all of these age groups will ordinarily pay more for insurance than their female equivalents as a result of males being statistically more likely to be involved in accidents. This will all end on this date when gender discrimination will be outlawed. Up until this point there are things that male motorists can do to overcome these higher prices and we take a more extensive look at these in our guide to car insurance for young male drivers.
After the 21st December it is expected that male prices will drop on average by 10% while females could well pay up to 30% more for the same policies. Our guide to car insurance for young female drivers aims to help motorists negatively impacted by these regulation changes prepare.
How to get your first car insurance policy
Whatever age you are when you pass your driving test, it's a thrilling achievement. But the excitement can soon fade when you catch sight of your first motor insurance premium.New drivers of all ages typically pay more for policies than experienced motorists, simply because they are statistically more risky. The figures show that one in five people who pass their test are involved in a crash within 12 months.
Why is car insurance for new drivers so expensive?
If you are a new driver in your teens or early 20s, you could stump up more for the insurance than you did for your car. The reason is statistics: motorists aged between 17 and 25 are responsible for one third of all fatalities on UK roads. In other words, they are more likely to be involved in an accident and so more likely to claim on their insurance.Young men typically pay more than young women, because male drivers are responsible for more than 92% of UK driving convictions and 98% of all convictions for dangerous driving.
Car insurance for new women drivers
However, this will not be the case for much longer. The European Court of Justice has ruled that, as of 21 December 2012, insurers will no longer be allowed to take gender into account when setting premiums, whatever the statistics say.As a result, female car insurance premiums are expected to shoot up by an average of 30%. But for young female drivers aged between 17 and 25 the news is even worse - they could see premiums rise by a whopping 34% in many cases. So, for the first time, newly qualified female drivers will be hit just as hard as males.
Car insurance is compulsory
Of course insurance is not optional. You must have at least third party cover to drive legally on a UK road. And if you were thinking of trying to dodge the law, think again. The government has recently introduced Continuous Insurance Enforcement regulations to clamp down on uninsured driving. Anyone found guilty of driving without insurance risks a fine of up to £1000. They could also have their vehicle impounded.As with any kind of insurance, it is important to scour the market for the best policy at the cheapest price. MoneySupermarket's online service can help you compare new driver car insurance quotes from more than 100 insurance companies - and can lead to big savings.
You can also find insurers recommended by other moneysupermarket.com customers in our forums or by reading our car insurance reviews.
Find cheap car insurance for new drivers
There are a number of other steps that can be taken in order to ensure you are getting the cheapest car insurance for new drivers available:- Choose your cover with care- Third party insurance is the minimum legal requirement and is the most basic level of cover. Young drivers can sometimes save money on their premiums by choosing third party instead of comprehensive insurance - but not always. It's always worth finding out the cost of a comprehensive policy because you might be able to get more cover for the same or even a cheaper premium.
- Buy the right car- The rule of thumb for car insurance is the bigger the engine, the bigger the premium. And, as you might expect, the more expensive the vehicle, the more expensive the policy. All models are placed into one of 50 car insurance groups and a car in group one will be cheaper to insure than a car in group 50. If you have just passed your test and are thinking of buying a car, it's worth checking out its group rating at: www.thatcham.org
- Don't modify your vehicle- Insurers will usually increase the premium if you modify your car - even if you add an extra set of lights. Either resist the temptation, or think twice before buying a secondhand model that has been altered from the original specification.
- Increase the excess- Your policy will impose a compulsory “excess”, which is the amount you have to pay towards the cost of any claim. So, for example, if you have a £200 excess and make a successful claim for £500, the policy will pay £300. If you volunteer to increase the excess, the premium will reduce. But don't pick too high an excess or you may not be able to afford it if you have to make a claim. This is explained in more detail on our insurance excess page.
- Lose the extras- Policies can come with all sorts of add-ons such as breakdown cover or insurance for driving overseas. But the extras come at a price. You can save money if you buy a no-frills policy, or only include the extras that you really need.
- Add another driver- New drivers can often save money if they add an older more experienced driver to their policy, perhaps their mum or dad. Just don't name your mum as the main driver - the tactic is known as fronting and is illegal. Find out more information about this on our named driver car insurance page.
- Buy online- Some insurers offer a discount if you buy online rather than over the phone.
- Keep your car safe- You will find cheaper new driver car insurance quotes if you fit approved security devices such as an alarm, or an immobiliser. If you can park off-road or in a garage, the premium often falls further.
- Driver fewer miles- Insurers work on the basis that the more miles you drive, the more likely you are to be involved in an accident. So if you can keep your mileage down, you should also keep the premium down. Just remember to tell the insurer if you expect to breach your mileage limit otherwise you might invalidate the policy.
- Pay-as-you-go- You can often cut the cost of insurance with a pay as you go car insurance policy. A “black box” will then be fitted to your car to monitor your motoring and you will typically pay a lower premium if you driver fewer miles and avoid hazardous conditions, such as night driving and rush hour traffic.
- Don't claim- If you don't make a claim on your policy, you will be rewarded with a discount on your premium. The discounts can add up, often cutting the cost of cover by up to 70% after five consecutive claim-free years.
Our guide to fully comprehensive car insurance
If you are buying car insurance, you first have to decide on the type of policy you need. There are basically three options. Third party insurance covers damage or injury to another person or property and is the legal minimum requirement to take a car on a UK road. The downside of a third party policy is that it does not insure your own car. If it is stolen, for example, you would have to pay for a new vehicle out of your own pocket.\
Motorists who choose third party fire and theft (TPFT) are buying limited protection for their own vehicle because the policy would pay out if the car was stolen by thieves or destroyed in a fire. But what if your car was damaged or written off in an accident? If the accident was your fault, you would not be able to claim on a TPFT policy. In other words, you would have to pay for the cost of repairs or a new car yourself - and that could run into thousands of pounds.
So it's perhaps not surprising that most drivers choose fully comprehensive insurance - about 75% according to some estimates. When you buy fully comprehensive car insurance, you also buy all-round protection for you and your car.
Most comprehensive policies insure the policyholder to drive another car, but you might only get third party insurance - and you will almost always need the owner's permission.
Don't assume that all fully comprehensive insurance policies are alike. Some insurers, for example, include a courtesy car if your vehicle is off the road. Or they might offer European cover if you want to take your car on the Continent. Other common add-ons include legal expenses and windscreen insurance. But the extras usually come at a price. So make sure that compare like for like when you are searching for car insurance. And remember that the cheapest policy is not always the best deal. MoneySupermarket's comparison service can help you choose the best policy for your needs.
But always check out all types of policy because third party cover has become more expensive as it has become more popular. The cost of fully comprehensive car insurance for young male drivers is often prohibitively high - the average premium for a 17-22 year-old man is currently £2,872. So many opt for third party or third party fire and theft insurance to save money. But young men are statistically more likely to make a claim. They are therefore more risky and costly to insure, so insurers have pushed up the price of even basic cover. These days there is often little or no difference between the premiums for third party cover and fully comprehensive insurance.
Of course, motor insurance is expensive, whatever your age or gender. The average premium is currently just over £900, an increase of 40% over the past year. But there are ways to keep the cost of cover under control.
You should always shop around for competitive quotes when your insurance is due for renewal, but one in four drivers automatically sticks with their existing insurer. MoneySupermarket's free independent comparison service is a quick and easy way to search the market and save money - the typical customer cuts more than £300 off their car insurance through our website.
Almost all car insurance policies include a compulsory excess, which is the amount you must pay towards any claim. If you agree a higher voluntary excess, you can usually negotiate a lower premium.
If you fit your car with an approved security device, such as an alarm or immobiliser, you can help to deter thieves and so reduce the likelihood of a theft claim - and that could mean a discount on your premium. You should also keep your care secure, preferable in a locked garage overnight, or at least off the street.
Motorists who drive fewer miles are less likely to make claims. So if you drive your car infrequently, negotiate a low mileage limit with your insurer and you should be able to cut the cost of cover.
Drivers who don't make any claims on their car insurance policy can build up a no-claims discount (NCD). The discount can be valuable: in some cases it can knock up to 75% off your premium after five consecutive claim-free years. It can therefore make sense to pay for any minor damage yourself to protect your NCD.
So it's perhaps not surprising that most drivers choose fully comprehensive insurance - about 75% according to some estimates. When you buy fully comprehensive car insurance, you also buy all-round protection for you and your car.
What does fully comprehensive insurance cover?
A standard fully comprehensive insurance policy covers your liability for injuries to other people, including passengers, as well as damage to other people's property. Your own car is also insured against fire, theft and accidental damage. The policy also usually covers personal effects, up to a certain limit, such as a sat-nav system.Most comprehensive policies insure the policyholder to drive another car, but you might only get third party insurance - and you will almost always need the owner's permission.
Don't assume that all fully comprehensive insurance policies are alike. Some insurers, for example, include a courtesy car if your vehicle is off the road. Or they might offer European cover if you want to take your car on the Continent. Other common add-ons include legal expenses and windscreen insurance. But the extras usually come at a price. So make sure that compare like for like when you are searching for car insurance. And remember that the cheapest policy is not always the best deal. MoneySupermarket's comparison service can help you choose the best policy for your needs.
Is fully comprehensive insurance the right choice for me?
If you drive an old banger, you might be happy with a more limited third party or third party fire and theft policy, especially if the premium for fully comprehensive insurance is more than the car is worth.But always check out all types of policy because third party cover has become more expensive as it has become more popular. The cost of fully comprehensive car insurance for young male drivers is often prohibitively high - the average premium for a 17-22 year-old man is currently £2,872. So many opt for third party or third party fire and theft insurance to save money. But young men are statistically more likely to make a claim. They are therefore more risky and costly to insure, so insurers have pushed up the price of even basic cover. These days there is often little or no difference between the premiums for third party cover and fully comprehensive insurance.
Of course, motor insurance is expensive, whatever your age or gender. The average premium is currently just over £900, an increase of 40% over the past year. But there are ways to keep the cost of cover under control.
You should always shop around for competitive quotes when your insurance is due for renewal, but one in four drivers automatically sticks with their existing insurer. MoneySupermarket's free independent comparison service is a quick and easy way to search the market and save money - the typical customer cuts more than £300 off their car insurance through our website.
Almost all car insurance policies include a compulsory excess, which is the amount you must pay towards any claim. If you agree a higher voluntary excess, you can usually negotiate a lower premium.
If you fit your car with an approved security device, such as an alarm or immobiliser, you can help to deter thieves and so reduce the likelihood of a theft claim - and that could mean a discount on your premium. You should also keep your care secure, preferable in a locked garage overnight, or at least off the street.
Motorists who drive fewer miles are less likely to make claims. So if you drive your car infrequently, negotiate a low mileage limit with your insurer and you should be able to cut the cost of cover.
Drivers who don't make any claims on their car insurance policy can build up a no-claims discount (NCD). The discount can be valuable: in some cases it can knock up to 75% off your premium after five consecutive claim-free years. It can therefore make sense to pay for any minor damage yourself to protect your NCD.
Our guide to fully comprehensive car insurance
If you are buying car insurance, you first have to decide on the type of policy you need. There are basically three options. Third party insurance covers damage or injury to another person or property and is the legal minimum requirement to take a car on a UK road. The downside of a third party policy is that it does not insure your own car. If it is stolen, for example, you would have to pay for a new vehicle out of your own pocket.\
Motorists who choose third party fire and theft (TPFT) are buying limited protection for their own vehicle because the policy would pay out if the car was stolen by thieves or destroyed in a fire. But what if your car was damaged or written off in an accident? If the accident was your fault, you would not be able to claim on a TPFT policy. In other words, you would have to pay for the cost of repairs or a new car yourself - and that could run into thousands of pounds.
So it's perhaps not surprising that most drivers choose fully comprehensive insurance - about 75% according to some estimates. When you buy fully comprehensive car insurance, you also buy all-round protection for you and your car.
Most comprehensive policies insure the policyholder to drive another car, but you might only get third party insurance - and you will almost always need the owner's permission.
Don't assume that all fully comprehensive insurance policies are alike. Some insurers, for example, include a courtesy car if your vehicle is off the road. Or they might offer European cover if you want to take your car on the Continent. Other common add-ons include legal expenses and windscreen insurance. But the extras usually come at a price. So make sure that compare like for like when you are searching for car insurance. And remember that the cheapest policy is not always the best deal. MoneySupermarket's comparison service can help you choose the best policy for your needs.
But always check out all types of policy because third party cover has become more expensive as it has become more popular. The cost of fully comprehensive car insurance for young male drivers is often prohibitively high - the average premium for a 17-22 year-old man is currently £2,872. So many opt for third party or third party fire and theft insurance to save money. But young men are statistically more likely to make a claim. They are therefore more risky and costly to insure, so insurers have pushed up the price of even basic cover. These days there is often little or no difference between the premiums for third party cover and fully comprehensive insurance.
Of course, motor insurance is expensive, whatever your age or gender. The average premium is currently just over £900, an increase of 40% over the past year. But there are ways to keep the cost of cover under control.
You should always shop around for competitive quotes when your insurance is due for renewal, but one in four drivers automatically sticks with their existing insurer. MoneySupermarket's free independent comparison service is a quick and easy way to search the market and save money - the typical customer cuts more than £300 off their car insurance through our website.
Almost all car insurance policies include a compulsory excess, which is the amount you must pay towards any claim. If you agree a higher voluntary excess, you can usually negotiate a lower premium.
If you fit your car with an approved security device, such as an alarm or immobiliser, you can help to deter thieves and so reduce the likelihood of a theft claim - and that could mean a discount on your premium. You should also keep your care secure, preferable in a locked garage overnight, or at least off the street.
Motorists who drive fewer miles are less likely to make claims. So if you drive your car infrequently, negotiate a low mileage limit with your insurer and you should be able to cut the cost of cover.
Drivers who don't make any claims on their car insurance policy can build up a no-claims discount (NCD). The discount can be valuable: in some cases it can knock up to 75% off your premium after five consecutive claim-free years. It can therefore make sense to pay for any minor damage yourself to protect your NCD.
So it's perhaps not surprising that most drivers choose fully comprehensive insurance - about 75% according to some estimates. When you buy fully comprehensive car insurance, you also buy all-round protection for you and your car.
What does fully comprehensive insurance cover?
A standard fully comprehensive insurance policy covers your liability for injuries to other people, including passengers, as well as damage to other people's property. Your own car is also insured against fire, theft and accidental damage. The policy also usually covers personal effects, up to a certain limit, such as a sat-nav system.Most comprehensive policies insure the policyholder to drive another car, but you might only get third party insurance - and you will almost always need the owner's permission.
Don't assume that all fully comprehensive insurance policies are alike. Some insurers, for example, include a courtesy car if your vehicle is off the road. Or they might offer European cover if you want to take your car on the Continent. Other common add-ons include legal expenses and windscreen insurance. But the extras usually come at a price. So make sure that compare like for like when you are searching for car insurance. And remember that the cheapest policy is not always the best deal. MoneySupermarket's comparison service can help you choose the best policy for your needs.
Is fully comprehensive insurance the right choice for me?
If you drive an old banger, you might be happy with a more limited third party or third party fire and theft policy, especially if the premium for fully comprehensive insurance is more than the car is worth.But always check out all types of policy because third party cover has become more expensive as it has become more popular. The cost of fully comprehensive car insurance for young male drivers is often prohibitively high - the average premium for a 17-22 year-old man is currently £2,872. So many opt for third party or third party fire and theft insurance to save money. But young men are statistically more likely to make a claim. They are therefore more risky and costly to insure, so insurers have pushed up the price of even basic cover. These days there is often little or no difference between the premiums for third party cover and fully comprehensive insurance.
Of course, motor insurance is expensive, whatever your age or gender. The average premium is currently just over £900, an increase of 40% over the past year. But there are ways to keep the cost of cover under control.
You should always shop around for competitive quotes when your insurance is due for renewal, but one in four drivers automatically sticks with their existing insurer. MoneySupermarket's free independent comparison service is a quick and easy way to search the market and save money - the typical customer cuts more than £300 off their car insurance through our website.
Almost all car insurance policies include a compulsory excess, which is the amount you must pay towards any claim. If you agree a higher voluntary excess, you can usually negotiate a lower premium.
If you fit your car with an approved security device, such as an alarm or immobiliser, you can help to deter thieves and so reduce the likelihood of a theft claim - and that could mean a discount on your premium. You should also keep your care secure, preferable in a locked garage overnight, or at least off the street.
Motorists who drive fewer miles are less likely to make claims. So if you drive your car infrequently, negotiate a low mileage limit with your insurer and you should be able to cut the cost of cover.
Drivers who don't make any claims on their car insurance policy can build up a no-claims discount (NCD). The discount can be valuable: in some cases it can knock up to 75% off your premium after five consecutive claim-free years. It can therefore make sense to pay for any minor damage yourself to protect your NCD.
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