Long Term Disability Cases

Long Term Disability Cases
For the claimant security and protection are assured:

* Payments guaranteed with a major insurer
* Leverages greater benefit payments through medical underwriting
* Receives tax-free income stream for a fixed period and/or life

For the defendant/insurer:

* Reduces costs without reducing benefits through the use of medical underwriting
* Reduces claims reserves by passing the risk to a third party
* Eliminates on-going administrative costs

Old Workers' Compensation Claims (pre-August 1997)
Structured settlements in workers' compensation claims provide security for the claimant:

* Guarantees a tax-free income stream designed to meet current and future needs
* Funds on-going medical or rehabilitation costs, as well as other financial obligations such as a dependent's college costs
* Provides worry-free investments at competitive rates of return

The employer/insurer:

* Eliminates the liability and payment obligation through a Non-Qualified Assignment
* Closes the case more quickly

Non-Bodily Injury Claims
Reducing taxes by deferring compensation over time allows the plaintiff to generate triple tax deferred interest: Money in a settlement annuity earns interest on funds that would have otherwise been lost to taxes in year of settlement. Triple tax deferred interest is earned on: 1) principal, 2) accumulating interest, and 3) taxes deferred at settlement.

The defendant can take a deduction for the cost of settlement in the year of settlement, and has no responsibility to guarantee the future performance of the life insurance company that issues the annuity.

Punitive Damages
Avoid the problem of a lump sum settlement exceeding the Alternative Minimum Tax (AMT) threshold by spreading the settlement payments over time. The defendant also benefits by being able to take a full deduction for the cost of settlement in the year of settlement while still allowing the plaintiff to defer taxation over time.

SPIA - Single Premium Immediate Annuities
This flexible annuity allows you to pace the use of your money to maximize the amount available to you and avoid living on a smaller income than necessary. An income schedule is tailored to meet your financial requirements. Payments can be fixed or have a pre-determined annual COLA, and can be designed to meet your present and future needs.

An SPIA provides:

* Flexible, easy-to-manage income
* Guaranteed income with no investment risk
* Financial security
* Payments that can be set up for a guaranteed fixed period and/or life
* Retirees with an income that will not run out later in life

Opinion on Single Claimant 468B Cases
Many major life carriers will not accept an assignment under Section 130 of the Internal Revenue Code from a Section 468B Qualified Settlement Fund (QSF) if there is a single claimant or single claimant family. Important issues of allocation and economic benefit preclude them from accepting assignments on single claimant 468B funds.

If there is only one claimant, an ipso facto prior allocation exists at the time of the creation of the Qualified Settlement Fund, since all of the money is paid on behalf of the sole claimant. This prior allocation would trigger economic benefit and thus taxation on the gain, and an inability to do a Qualified Assignment, under the requirement that all of the periodic payments must be entirely excludable, pursuant to IRC 130(c)(2)(D).

The claimant

Workers' Compensation Claims (post-August 1997)

These claims can take advantage of the traditional structured settlement with a Qualified Assignment, which has increased benefits for both claimant and employer/insurer.

The claimant:

* Receives a guaranteed tax-free income stream
* Avoids the risk of an individual, self-insured company not meeting its obligation due to financial problems because the obligation/risk is transferred to a financially strong life insurance company










The employer/insurer:

* Eliminates legal obligations through a Qualified Assignment under I.R.C. Section 130(c)
* Removes the liability from their books and releases reserves
* Closes the gap in expectations with the claimant for a more timely settlement

Attorneys' Fees – Prevent Your Legal Fees From Shrinking

Click here for IRS guidelines regarding attorney’s’ fees

If you like the idea of an uncapped 401(k) plan, think about deferring your fees for tax advantages and savings. You can structure your fees in physical injury cases and now in taxable settlements too, whether or not the plaintiff takes a structure. And even though your fees are deferred, the defendant is able to deduct the entire amount in year of settlement. Payments are made directly to the attorney.

Employment Cases – ALERT – Click here to see positive developments regarding employment cases
Avoid wasted time and extra expense; tax breaks for the plaintiff make reasonable offers more apt to be accepted. Settlements are more quickly achieved when there are advantages for both parties. The highest real benefit per settlement dollar provides savings to the defendant (an amount paid at settlement can grow over time) while producing more benefits for the plaintiff (through interest earned and accumulated over time on deferred taxes). Both parties receive tax advantages and closure.

Commercial Business Transactions
This approach provides businesses with the tool they need to satisfactorily handle a plethora of transactions with advantages for all parties. Whenever there is a situation with one party seeking a current tax write-off and the other party seeking deferred compensation, this approach provides a beneficial resolution. Transactions include (but are not limited to):

* Mergers and acquisitions
* Commercial lease buyout/termination agreements
* Deferred compensation*
* Sale of business
* Compensation for agents*
* Sports/entertainment compensation*
* Attorneys' fees - Click here for new IRS guidelines regarding attorney’s’ fees
* Property disputes

*Recent legislation has created a new Section (409A) of the code establishing rules that will need to be followed in order to structure these types of compensation. Guidelines from the IRS are expected shortly.

Single Premium Immediate Annuities

SPIA - Single Premium Immediate Annuities
The SPIA provides a guaranteed income for life usually at higher yields than CDs, bonds and other traditional financial products.

Estate Planning Life Insurance
Working with estate planning attorneys and CPAs, we provide high net-worth individuals who want to protect their wealth and provide as much as possible for their heirs with sophisticated life insurance solutions.

I.R.C. Section 468(B) Qualified Settlement Funds
I.R.C. 468(B) provides an excellent tool that allows defendants to globally settle multi-plaintiff cases and remove themselves from costly litigation while the plaintiffs resolve issues of allocation and distribution.




Don't get caught in the single plaintiff case tax trap that may potentially devastate the plaintiff recipient. In multi-plaintiff cases, 468(B) may be used to facilitate settlement for both plaintiffs and defendants.

Periodic Judgments
Periodic judgment annuities and analysis include expertise under New York Civil Practice Law and Rules Articles 50-A and 50-B. We perform pre- and post-verdict analysis to measure the present value and potential exposure before trial and the actual cost after trial. CCI is a leading provider of CLE credits on periodic judgments in New York. We counsel and train the Bench and Bar on the use of structured settlements and on the case law, mechanics and calculations required on periodic judgments entered after trial.

Treasury Bonds
As a structured settlement funding vehicle, treasury bonds were popular as an alternative to annuities during the early 1990s because of their safety. Pursuant to Section 130(d) of the Internal Revenue Code, U.S. Government obligations are the only other acceptable funding vehicle in structured settlements. As insurance regulators across the country have tightened their control over insurance industry practices to enhance the security of annuities, T-Bonds have declined in popularity as a source of funding structured settlements. Higher yielding and safe, annuities once again dominate the structured settlement industry.

Physical Injury Cases (since 1983)
With no tolerance for investment risk, the plaintiff in a physical injury case is at a disadvantage with today's volatile market. A structured settlement provides the means to ensure a secure future while avoiding the burden of investment management, as well as the risk of fraud.

The claimant:

* Eliminates investment risk and investment management fees
* Guarantees a flexible future payment stream that is not subject to market fluctuations
* Provides income for a fixed period and/or life

The defendant/insurer:

* Receives savings through the ability to settle quickly and avoid on-going litigation
* Eliminates responsibility for future payments through assignment of the obligation

Structured Settlements: Physical Injury Cases

Creative Capital is dedicated to working with clients to craft solutions and tailor products that meet their specific individual situations. With years of experience and expertise in structured settlement consulting and brokerage, we are uniquely positioned to facilitate settlement processes and support approaches that work favorably for everyone.

In any situation where parties negotiate a payout over a period of time in taxable or tax-free situations, we now have the ability to use a structured settlement approach to help the parties achieve a better settlement.

Traditional Structured Settlements
Structured settlements with qualified assignments (novations) have been used successfully for many years in:

* Physical Injury Cases (since 1983)
* Workers' Compensation Claims (post-August 1997)

Structured Settlements for Other Situations
Now the success of the traditional structured settlement with a novation is available for a wider range of situations, including:

* Attorneys' Fees (physical injury and non-physical injury)
* Employment Cases
* Commercial Business Transactions
* Long Term Disability Cases
* Old Workers' Compensation Claims (pre-August 1997)
* Non-Bodily Injury Claims
* Punitive Damages
* Most other negotiated settlements

Car Insurance For 17-Year-Olds

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Figures from the Association of British Insurers show that every year 50,000 17-year-olds pass their test after less than six months of lessons. This lack of experience is reflected in the price of car insurance for 17-year-olds with typical premiums for 17 to 25-year-olds doubling the national average.

What should 17-year-olds look for from a first policy?

In 2008 several of the UK's leading car insurance companies stopped offering quotes to 17-year-olds altogether due to high accident rates. However, even though the options for young drivers may be more limited than older motorists with more experience, they should still shop around for car insurance and gather as many quotes as they can. There are several specialists in the market that specifically offer quotes to young drivers.

When searching for cheap car insurance think about the value of the car itself. There may be little point in paying for comprehensive cover if the vehicle is cheap to replace or repair. Consequently, new drivers may be better off with third party only or third party fire and theft cover just to give themselves the minimum legal level of coverage.

How can 17-year-olds save money on car insurance?

There are a number of factors to consider which can help reduce the cost of your car insurance. These include:

• Vehicle choice – Buy a conventional vehicle with no modifications as high-performance cars present a greater risk to insurers.
• Increasing security – Park in a garage at night, fit a car alarm and immobiliser. Ask the insurer to recommend products.
• Taking a Pass Plus course – As soon as you complete your test take a Pass Plus course. Bear in mind however, that this will typically cost more than £100 but it could be money well spent if it knocks more than that off the cost of your insurance.
• Adding a parent as a named driver – Most insurers will offer a discount if you have a more experienced driver on your policy. However, don't ask an adult to 'front' a policy for you (put it in their name) as this is illegal.

How can 17-year-olds get cheaper car insurance in the future?

Drive safely and build up a no-claims discount – many insurers offer rapid bonus schemes to 17-year-olds to earn a full year's bonus in nine or 10 months. Remember too to shop around with the moneysupermarket.com car insurance comparison tool each year to take advantage of introductory offers. Many insurers offer their cheapest rates to new customers so don't assume your existing insurance provider will remain the cheapest.

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European Car Insurance

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Around eight million Brits take their cars to the Continent every year, but many wrongly assume their existing policy provides the same level of cover in Europe as it does here in the UK. Research into European car insurance from moneysupermarket.com found that 39% of motorists weren't aware that many insurers downgrade your level of cover if you take your car abroad.

What protection is available for driving in Europe?

Unless you take out a specific European car insurance policy, chances are you will only be covered for basic road traffic accidents or third party cover. Only a handful of insurers automatically extend comprehensive cover to travelling abroad and some only increase cover if you contact them, even if extended coverage is free.

The basic level of cover is known as an international motor insurance certificate, or a Green Card. If you are involved in an accident in several European countries including Malta, Romania, Poland and Andorra you will need to produce a green card to prevent your car being impounded. Most insurers will provide the Green Card on request, usually with first class delivery to your contact address.

However, the Green Card only provides the minimum level of cover you need for travelling in a European Union country – and in some cases this may be less than third party only cover in the UK.

How can you get the level of protection you need?

To extend the level of cover you get when you take your car abroad, you will usually have to pay an extra charge to your insurer. Many providers offer European insurance that matches the level of protection you have in the UK as an optional extra with cover for up to 90 days of travel in one policy year (coverage periods vary).

Be wary however, as some insurers that claim to offer European car insurance may still exclude certain aspects of coverage. For example, many insurers will not provide legal protection or breakdown cover while abroad. You should also consider the countries that are covered by the policy – insurers may only cover travel in member countries of the European Union.

Rates vary widely and you may need to shop around to find cheap European car insurance. Europe can be more expensive than the UK for repairs and part replacements, and many insurers take into account the type of car being covered and other pertinent factors. Consequently you should read the terms and conditions of your policy carefully before you travel.

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European Car Insurance

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Around eight million Brits take their cars to the Continent every year, but many wrongly assume their existing policy provides the same level of cover in Europe as it does here in the UK. Research into European car insurance from moneysupermarket.com found that 39% of motorists weren't aware that many insurers downgrade your level of cover if you take your car abroad.

What protection is available for driving in Europe?

Unless you take out a specific European car insurance policy, chances are you will only be covered for basic road traffic accidents or third party cover. Only a handful of insurers automatically extend comprehensive cover to travelling abroad and some only increase cover if you contact them, even if extended coverage is free.

The basic level of cover is known as an international motor insurance certificate, or a Green Card. If you are involved in an accident in several European countries including Malta, Romania, Poland and Andorra you will need to produce a green card to prevent your car being impounded. Most insurers will provide the Green Card on request, usually with first class delivery to your contact address.

However, the Green Card only provides the minimum level of cover you need for travelling in a European Union country – and in some cases this may be less than third party only cover in the UK.

How can you get the level of protection you need?

To extend the level of cover you get when you take your car abroad, you will usually have to pay an extra charge to your insurer. Many providers offer European insurance that matches the level of protection you have in the UK as an optional extra with cover for up to 90 days of travel in one policy year (coverage periods vary).

Be wary however, as some insurers that claim to offer European car insurance may still exclude certain aspects of coverage. For example, many insurers will not provide legal protection or breakdown cover while abroad. You should also consider the countries that are covered by the policy – insurers may only cover travel in member countries of the European Union.

Rates vary widely and you may need to shop around to find cheap European car insurance. Europe can be more expensive than the UK for repairs and part replacements, and many insurers take into account the type of car being covered and other pertinent factors. Consequently you should read the terms and conditions of your policy carefully before you travel.

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Business Car Insurance

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If you're planning to use a car for business use, such as attending meetings or running errands for your boss, then chances are you won't be covered by an ordinary car insurance policy. Instead you'll need business car insurance with unique cover options designed for motorists who travel as part of their work.

How does business car insurance work?

Most car insurance policies will cover your car for 'social, domestic and pleasure' (SDP) use and commuting. This covers the normal day-to-day use of a vehicle for travelling to and from work, trips to the shops, visiting friends and family, etc. While this type of policy does insure you for travelling to your regular place of work, it does not offer cover for any further business travel.

If you want car insurance for business use, you have to apply for specific cover. This will normally take one of three forms:

• Private and occasional business use: This covers private use, commuting and also includes use for occasional business purposes by the regular driver or spouse. However, the vehicle must not be registered for business use and must not be an essential part of earning your income.
• Private and business use: This insures all of the features listed above but with the addition of business use for the regular driver, spouse or any named driver on the insurance policy.
• Commercial travelling: This covers a policyholder for whom travelling in their own vehicle is a regular part of their job, such as a door-to-door salesman.

How to cut a business car insurance premium

When looking for cheap business car insurance think about how you will use the car. There is no point in underinsuring yourself – but consider whether you need the vehicle for commercial use, regular business use or occasional business use. Some insurers will let you add car insurance for business use as and when you need it for an additional premium.

Consider agreeing to a feasible mileage limit – if you can prove to an insurer that you only travel limited distances you could slash your premiums.

Think about where you park the car – if you always park in a secured area, perhaps on business grounds, inform your insurer.

In addition follow the standard methods to reduce a car insurance premium such as enhancing the security of your vehicle, agreeing to a higher voluntary excess and driving a car with a smaller engine.

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Kit Car Insurance

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Kit car owners are dedicated to producing a vehicle that is their pride and joy and deserve a policy that is designed for their unique needs – which is where kit car insurance comes in. You can find insurance for a kit car that is specifically catered for your needs through many specialist insurers.

What to look for in a kit car insurance policy

Shop around – there are many specialist providers online. Here are some key factors you should look for from a good policy:

• Collection and building coverage – Look for kit car insurance that covers parts while in transit or against damage/theft during the building process.
• All parts covered – Parts may go missing or be damaged so ensure you are covered for this eventuality.
• Track racing – If you plan to race the vehicle in a rally ensure the policy offers you protection.
• Discounts – Many specialist kit car insurance providers will offers discounts if you are part of a members' club.

In addition there are a number of optional extras available with some kit car insurance policies that you may wish to pay a higher premium for, such as:

• Breakdown cover – It may be difficult to find breakdown cover for a kit car with a standard breakdown company so considering adding it to your insurance coverage.
• Legal expenses – In case court action is required after an accident.
• Agreed value cover – Guarantees the amount paid on your vehicle does not decrease in the event of a claim.
• Formal occasion cover – If you plan to use the car for an event such as a wedding.
• Green card cover – For those that wish to drive their kit cars in Europe, this provides the most basic level of overseas coverage.

To find cheap kit car insurance online consider limiting the size of your engine. If you will only drive the car infrequently agree to a mileage limit and also look into enhancing security. Keep the vehicle in a garage when not in use and fit an immobiliser if possible.

Is your kit car roadworthy?

If your kit car is already built you should ensure it is roadworthy. For a kit car to be roadworthy it must complete a single vehicle approval (SVA) testing. This costs around £170 and once completed your vehicle will not usually require an MOT for another three years.

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Imported Car Insurance

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Importing a car can be a smart money saving idea – on the continent and further afield pre-tax prices tend to be much lower than here in the UK. In particular, Japanese imports are popular, such as the Toyota Estima, the Mitsubishi Pajero and the Eunos Roadster, because they are cheaper than official UK imports and often have better specification levels.

However, finding cheap imported car insurance, including Japanese imported car insurance, can be a difficult task as the vehicles are not necessarily built to European standard.

How does being imported affect insuring a vehicle?

Insurance for an imported car can be more expensive as insurers do not necessarily know what they are taking on. Parts may be rarer, repairs could be more difficult and the vehicles may not be well-suited to UK roads. As a result some insurers will refuse to offer cover altogether.

The chance of finding cheap imported car insurance depends largely on the type of vehicle you're looking to cover. Broadly there are two types of vehicle imports:

• Grey imports: These are vehicles not built to European standard and not EU approved. As a result you will need to shop around for car import insurance and it may be worth obtaining quotes before you buy. The insurer will usually require very detailed information about the vehicle.
• Parallel imports: These vehicles are right-hand drive and are bought outside the UK. They are generally imported from Europe, are built to EU type approval and are compatible with UK specifications. Consequently, import car insurance for these vehicles should be easier to find.

How can you get cheap insurance for an imported vehicle?

If you want to find the most competitive insurance for an imported car, it's crucial to obtain as many quotes as you can. Use a comparison website and consider specialist insurers. There are several providers that specialise in import car insurance but don't assume they are always the cheapest – you should always shop around.

Some insurers will cover left-hand drive cars for the same premium as right-hand drive vehicles as long as there are no additional changes. If your import is modified it will be difficult to insure so limit the changes you make.

Security is also a key factor in determining the premiums for imported car insurance. Consider fitting a Thatcham security device to your car as this could earn you a sizeable discount.

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Modified Car Insurance

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Finding car insurance for modified cars can be difficult as generally insurers frown on any changes you make to a vehicle.

Modifying a vehicle presents more risk to a car insurance company than a sports car or an imported car because the modifications made may be unorthodox and a potential hazard. Peripheral changes such as the addition of alloy wheels may go unpunished by insurers, but even these small alterations could be viewed as making your car more desirable to thieves and enhancing your claim risk.

When looking for modified car insurance remember, anything that adds value to your car such as new bumpers, spoilers, exhausts and changing or lowering the suspension will usually be reviewed on a case-by-case basis.

However, if you enhance the vehicle's engine and performance you will almost certainly receive a higher modified car insurance premium due to the risk that you will be travelling at higher speeds.

How to keep costs of modified car insurance down

Generally, you will pay more for car insurance if the vehicle has been modified, than you would to insure a conventional car but you can still limit this expense. Firstly, don't go too far with your modifications – remember each one will likely increase your premium, so keep changes to a minimum. However, you should always declare any changes you've made to the spec to an insurer or you risk invalidating a claim.

Shop around and gather as many modified car insurance quotes as possible. Use a comparison website and also look into specialists, which may be able to offer cheap modified car insurance as well as a number of unique discounts and options such as track day cover and owners' club membership bonuses. Many specialist insurers will also offer you an agreed valuation of your car so you know the exact amount you are covered for.

Steps to save money on modified car insurance

You should follow the same steps with a modified car as you would with a conventional car to save money on car insurance. These can include parking in a garage at night, fitting a car alarm and immobiliser, driving safely to build up a no-claims discount and avoiding driving convictions.

For additional savings, consider agreeing to a mileage limit if you use the car infrequently and see if your insurer offers a discount if you complete an advanced driver's course. Include locking wheel nuts on alloys and look into raising your voluntary excess to a level you can comfortably afford.

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Multi-Car Insurance

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If you have two or more cars in your household it could be possible to save money with multi-car insurance. So just what is multiple car insurance and how does it work?

How does multi-car insurance work?

Multi-car insurance allows you to insure more than one vehicle with a single policy. With some providers you may be able to insure as many as five vehicles as long as all of the vehicles are registered to the same address. This means that you could potentially insure cars on the same policy for you, your spouse, your children, or even a friend, as long as you live in the same household.

In theory a multi-car insurance policy can help you save money. This is because you are effectively bringing more business to the insurer and simplifying the bills - just as a broadband provider might reward you with savings if you tie in a phone or TV deal, multi-car insurance applies the same theory to vehicles. It's almost like buying insurance in bulk.

It doesn't always work out cheaper than buying policies individually however, so it is worth investigating both options.

What should you look for in a multi-car insurance policy?

Here are some things to be wary of with multi-car insurance:

• Renewal dates – Some providers may link all renewal dates together, which could be expensive if you are paying annually. Ensure you can pay monthly to break the expense down.
• Vehicle change – Ensure you can change your car during the policy term.
• No-claims discount – You may have several years' no-claims bonus and one of the other drivers on the policy has an accident. Most providers will only wipe out the no-claims discount of the individual involved in the claim but you should check this is the case.
• Who can drive what – With multiple car insurance you will only be able to drive cars that you are registered as a named driver for.

Ensure your multi-car insurance quote is good value compared to individual policies and ask your insurer about additional discounts – such as for parking in a garage at night.

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Student Car Insurance

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Money matters can be tough for University-goers and car insurance is no exception. Despite only making up 7% of the car insurance market, young drivers, including students, pay 22% of the total premiums in the UK.

The reason cheap student car insurance is hard to come by is because students are deemed a high risk group. According to the Association of British Insurers 18-year-olds are involved in three times as many accidents as drivers in their fifties and students typically live in high crime areas.

What should students look for in a car insurance policy?

Most young drivers will be focused on one thing - finding the cheapest car insurance. However, if you can afford it, think beyond the price and look for the best student car insurance policy offering the right level of cover for you. Consider the value of policy features such as a courtesy car if you travel to uni from home and would be stranded without your car.

Generally however, finding cheap student car insurance is the main objective. If you are driving an inexpensive car you may prefer third party only or third party fire and theft coverage to comprehensive cover as the latter may cost more in annual premiums than the vehicle itself is worth.

How can students save money on car insurance?

There are several additional ways to save on student car insurance:

• Buy carefully – Pick a car with a small engine and no modifications.
• Enhance security – Consider installing an alarm and immobiliser to earn a discount. Parking in a garage overnight or at least in a well-lit area could also help you save.
• Mileage limit – If your seminars are only held in the afternoons agree not to drive during the rush hour, or agree to a mileage limit if you only travel short distances.
• No-claims discounts – Many providers offer rapid bonus schemes to students allowing them to earn a full year's discount on student car insurance in around nine months.
• Pass Plus – Complete the Pass Plus course straight after your driving test to earn a discount of 10% or more in your first year.
• Shop around - Gather as many quotes as you can to save cash.

Though it is possible to add a parent as a named driver to a policy for a marginal discount, never ask another driver to front a policy for you as this is illegal and may invalidate a claim.

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Sports Car Insurance

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Drivers of high performance cars will almost certainly have paid high prices to get behind the wheel of the vehicle of their dreams.

Sports car insurance tends to be expensive because in theory larger engines mean higher speeds making crashes more serious and repairs more expensive, when they do occur. Age and driving experience play a role too - the image of boy racers means that anyone under the age of 25 can expect to pay a high premium for sports car insurance.

Another factor that makes cheap sports car insurance hard to find is security. Sports cars are more attractive to thieves and vandals, which also impacts on the price you have to pay to protect them.

What to look for in a sports car insurance policy

Pay close attention to the policy features available. For example, are you covered if you take your sports car on a track or compete in a race day? Many insurers are willing to negotiate an agreed value so there is no nasty surprise when you come to make a claim and some specialists offer discounts if you join a car owner's club.

Cost will be a key consideration when shopping for sports car insurance and you should gather as many quotes as possible with a comparison website. Also consider specialist insurers that may offer additional incentives. For example, providers of classic sports car insurance may offer a limited mileage policy.

How to lower the cost of sports car insurance

Sports car insurance differs from modified car insurance in that replacement parts for the vehicle should be easier to find. If you have modified a vehicle to offer greater performance it shows an intention to drive at high speeds - so limit any modifications you make.

If you have a convertible that you only drive during the summer then let your insurer know - it should be able to scale back your premium considerably.

Further savings can be made if you agree to a mileage limit, join a car owner's club and park your sports car in a garage when not in use. Pay attention to the security of your vehicle - most insurers want Thatcham Category One or Two systems installed. You may also enhance your chances of finding cheap insurance for a sports car if you install an approved tracking device.

Finally, limit the number of drivers on your policy and particularly those under the age of 25.

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Short Term Car Insurance

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Most car insurance polices offer cover for 12 months, but what if you only require cover for a shorter period of time? This is where short term car insurance, also known as temporary car insurance, can be useful.

How does short term car insurance work?

Adding someone to your existing car insurance policy, such as a visiting friend or relative, can be risky because they could wipe out your no-claims bonus. However, by setting up a short term policy, whether it is monthly car insurance or daily car insurance, they can legally drive your vehicle without putting your discount at risk.

In addition, you may need to drive someone else's vehicle. By setting up short term car insurance you can cover yourself even if you only need protection for one day.

So with short term car insurance there is less risk to the standard policyholder, instant cover is available and setting up a policy is often quicker than adding a named driver.

Why would you need short term car insurance?

Short term car insurance is ideal for a number of people including:

• Those hiring a car or borrowing a friend's vehicle.
• Temporary additional drivers, which could include overseas visitors.
• Those lending a car to a friend or relative.
• Drivers who have just bought a new car and need cover as soon as they drive away from the dealership, but who haven't yet had chance to sort out an annual policy.

What to look for in a short term car insurance policy

Most short term car insurance policies are available for a period of one to 28 days. You should pay close attention to the period you are securing the car insurance for and you should enquire as to whether you can take out a new policy at the end of the term if you require it.

Temporary car insurance is available to anyone with a UK driving licence, although there may be a minimum age limit. Some temporary car insurance companies will also cover people with European or other driving licences, but don't assume that is the case - always check.

As with any standard car insurance policy you should pay less for premiums if you have a good driving record although the type of vehicle will also have an impact on the cost, with high performance cars costing more to cover than those with a small engine. For cheap short term car insurance shop around online as a number of specialist providers are available.

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Young Driver Car Insurance

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Obtaining cheap car insurance for young drivers has often been a frustrating experience, due to the sky-high premiums many are forced to pay.

If you are a younger driver, in your early 20s, or have only just passed your driving test, this guide aims to help by providing tips on how to get a good deal on your motor cover.

There are several reasons why younger drivers pay more for their car insurance.

These include:

• Drivers are statistically more likely to have an accident in the first two years after passing their test than at any other time. One in five drivers will have an accident in their first year on the road.
• A third of fatalities on UK roads are caused by young drivers aged 17 to 25.
• Young drivers also experience more theft, fire and vandalism to their vehicles, which leads to claims on their car insurance.
• Young drivers are more likely to be ferrying around a car full of friends and therefore face a much greater risk of being involved in an accident than someone who just uses their car to nip out to the shops mid-afternoon.

Cheaper Car Insurance For Younger Drivers

So how can you get cheap young driver car insurance? Much of the advice given in our standard car insurance guide applies equally to younger drivers. However, here are some extra tips that can help shave pounds off the cost of your motor policy.

• Forget about turbo-charged cars, with big spoilers, fat tyres, alloy rims and other “sexy” extras. For at least two years after passing your test, aim to drive a car that has a small engine, or is in the lowest possible insurance group.
• If at all possible, avoid being added to a parent’s insurance policy. It prevents you from building up your own no-claims bonus.
• If you are the main driver or registered keeper of the car, DO NOT insure it in your parents’ name and put yourself down as a named driver. This is known as “fronting” and in the event of an accident it could mean the claim is not paid. Moreover, the younger driver can be charged with driving without insurance.
• Consider taking part in the Pass Plus scheme. This is a certificate where a young driver who has already passed his or her driving test receives specific lessons in night, motorway and town traffic driving. Achieving the Pass Plus can earn significant discounts (as much as 35%) on your car insurance.

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Women’s car insurance

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Until a decade or so ago, the issue of cheap car insurance for women drivers was not high on most insurers’ agenda.

Today, women can enjoy some excellent motor insurance deals. But as with all these things, it makes sense to shop around. Find out how to get the best rates below.

Women may still face discrimination in certain areas of their lives, but one area where this definitely does not appear to be happening is over the cost of their car insurance.

Premiums for women drivers tend to be lower than they are for men, especially up to the age of about 45. Thereafter they level off.

The reasons why female car insurance is cheaper than men’s are simple: premiums are based on a wide range of statistics which show they are much safer drivers than men.

• Government figures show that over 92% of convictions for driving offences in the UK are for men.
• Men are responsible for 98% of all convictions for dangerous driving.
• Women drivers tend to drive more slowly, carefully and shorter distances than men.
• Although women tend to have as many accidents as men, they are less likely to be serious. Therefore their overall claims experience is better than those of their male counterparts.

Cheaper Car Insurance For Female Drivers

So how can women get the best car insurance deals? Much of the advice available in our main car insurance guide applies equally to women drivers. Here are a few extra tips to help you keep car insurance premiums as cheap as possible:

• Consider a car that has a small engine or is in a low insurance group.
• If you have only just passed your test, consider taking out your own cover rather than piggybacking on your parents: you can build up a no-claims bonus that much quicker – in the second year your costs could fall by up to 30%.
• Avoid modifications, such as alloy wheels, extra spoilers or racing exhausts.
• Look out for additional security features, such as locks and immobilisers as these will help minimise your premiums.
• If you only tend to drive occasionally, look for policies that offer discounts for lower mileages. It’s also worth getting quotes from insurers that specialise in covering female drivers.
• If you are an older driver, try to avoid putting your children on your policy.

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Your No-Claims Discount

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Accumulating a no-claims discount can significantly reduce the cost of your car insurance premiums. So how does this bonus system work and what benefits does it bring?

The theory behind no-claims discounts

Car insurance premiums are based on an assessment of risk - the lower the risk you pose to the insurer the lower your premiums will be. If you have never made a claim before or you have driven for several years without making a claim then a car insurance company is likely to see you as a safer driver and as such will charge you less for cover.

Effectively you are rewarded for not making a claim through a no-claims discount, also known as a no-claims bonus, which reduces your premiums. Your discount is usually calculated as a percentage of your premium and can be built up year after year up to a certain limit – usually 65-70%.

How does a no-claims discount work?

Every car insurer will calculate a no-claims discount in its own way. Generally there will be a no-claims bonus schedule that indicates how much discount you are likely to receive. The maximum number of years you can build a discount for will also vary, but will generally be set at five.

So, as an example, you may earn a 10% discount for being claim free for one year; a 20% discount after two years; 30% after three years; 50% after four years; and a maximum of 70% after five years.

As the savings that can be made with discount car insurance are considerable, many insurers offer protected no-claims bonus schemes so you can effectively 'insure' your discount. This means that you can make one claim (or possibly more depending on the insurer) within a given period, for example two years, without losing the discount you have already built up. Opting to protect your no-claims bonus will usually be marginally more expensive than choosing not to protect it but that could be a premium worth paying if you do have to make a claim.

How can you build up a no-claims discount?

In addition to offering a financial incentive, a no-claims discount is an incentive to drive safely. By concentrating on your motoring and not driving recklessly you increase your chances of avoiding a car insurance claim and therefore building a discount.

As an incentive to new drivers, many car insurers also offer rapid bonus schemes. This allows young drivers to earn a full year's no-claims discount in a shorter period - such as nine or 10 months. Rapid no-claims bonus schemes are designed to help young drivers bring their premiums down.

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Car Insurance Policy Types

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Broadly speaking, there are three types of car insurance available in the UK. These are:

• Third party only
• Third party, fire and theft
• Fully comprehensive

Third party only car insurance

Third party only car insurance is the minimum level of cover required by law in the UK and is also the cheapest.

All road users must have third party car insurance under the rules of the Road Traffic Act but it only covers against liability to others – there is no cover for you if you suffer an injury; or for your vehicle if it suffers damage. Even passengers in your vehicle will not be covered though they could claim compensation against you as the driver if you are at fault.

Instead third party insurance simply covers:

• Injuries to other drivers and their passengers;
• Damage to other’s property including the cost of repairs on another vehicle;
• Passengers for accidents they cause;
• Liability for accidents arising from the use of a caravan or trailer attached to the vehicle.

Generally speaking if you can afford it, you should take out a more comprehensive policy. However, cheap third party car insurance can be the best option for many drivers including new drivers with no insurance history and drivers with cars of very low value for whom a comprehensive policy may be more expensive than the vehicle itself. If your car has a high value then you should opt for a policy with greater coverage than third party only car insurance - third party cover can prove to be a false economy if you do have an accident because the amount you save on the premium could be easily wiped out by the cost of any repairs.

Before searching for a third party car insurance quote think about what you can comfortably afford to pay on car insurance each month. Third party insurance is cheap but doesn't provide the safety net to cover damages in the event of an accident or a replacement if your vehicle is stolen.

Consequently, you should consider whether you have the money to cover repairs or a replacement should your vehicle be written off or stolen, and balance your risk carefully.

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