Car insurance is something everyone has to pay for. Having a car insurance is essential because it covers your expenses in the event of vehicle damage or injuries to other drivers, passengers or pedestrians. It’s easy to save hundreds of pounds a year on your car insurance. Yet most people stay with their existing provider and pay far more than they should because they are unaware of how to save. But there are plenty of things you can do to make sure it doesn’t leave you out of pocket.
The best way to save money on any outgoing is to shop around the market. Compare everything from prices to cons and perks. See what deals are being offered and which one caters to your financial needs and only then jump into it. By doing this you can compare the quality of the policy and have an idea of the best price. You can then negotiate with your existing insurer if you want to stay with them.
Here are a few top tips we think you can use to reduce the cost of your insurance:
Use a Comparison Site
If you’ve not done this before you should try it now. It will definitely save you hundreds of pounds on a renewal quote. This is a simple and easy way to compare prices and while results will broadly be the same across most comparison sites, they may slightly differ enough for you to make the best decision for yourself. So it is worth checking a couple of these sites before taking a decision. Here are a few examples you can check out: Compare the Market, MoneySupermarket, or Confused.com
Shop Around for the Best Car Insurance Policies
When shopping around for car insurance, it’s important to make sure that you are comparing like-for-like cover. Some policies may seem cheaper, but you may find you don’t have the same level of cover when you have to make a claim. If you’ve been happy with the cover your existing provider has given until now but are unhappy with their renewal quote, let them know. State that you have been looking elsewhere, and have received a better offer from a rival insurer. Then ask them to at least match it. No insurance company wants to lose a customer, so they should give you options and offer discounts. That way you can pick out the one that suits you best. Comparing prices is essential to finding this information. You can save hundreds of pounds if you shop around before you renew your cover.
Protect Your No-Claims Bonus
A long no-claims bonus is the single best way of cutting car insurance costs, so protect it. This may increase the premium by a few pounds. But this fades into insignificance against the potential loss of a 90% discount on a premium of several hundred pounds. Although the definition of a protected no-claims bonus can vary widely between insurers. The fact is that accidents caused by another driver will normally have no impact on such a bonus. However those caused by the insured could. Also, if you have an older car that isn’t worth very much, a third party, fire and theft policy rather than comprehensive cover could save some money.
But third party-only insurance might not offer the cover level you want, and it isn’t always cheaper than comprehensive cover. The key is to always check the policy carefully and consider every detail.
Secure Your Car
Fitting an approved alarm, immobiliser or tracking device in your car can attract a discount of around 5%. Many newer cars will come with these as a standard inbuilt feature, so make sure you check if you have them and then declare them. Drive safely and park in well lit areas or at night in a garage to reduce chances of break-in.
Think Carefully About Adding Young Drivers
Adding a young, inexperienced driver to your policy can be considered as false economy, especially if you have a large or higher powered vehicle. The premium will still be affected by the youngest driver and they may not have a no-claims bonus. Insurers have also been focusing on fronting, where experienced drivers such as parents insure cars in their name for children to cut costs, so make sure if you are the policyholder on a car driven by your children that you are actually its main driver, or that you declare otherwise.
Many insurers charge interest on your payments if you decide to pay monthly payments. This is because car insurers treat split payments like a loan – with some charging 30% APRs on them. On a big quote, that can be hundreds of pounds extra over the year. Not all of them do so, but it’s the case for a lot of them. So try and pay upfront if you can and save money in the long run.
Use the Right Job Title
Most of the general population is unaware of this and how they can work around it. Did you know, If you describe yourself as a “chef” when filling in your car insurance application your average quote is £98 higher than if you write “kitchen staff”? “Music teachers” pay £86 more than “teachers” & “office managers” pay more than “office administrators”. This basically means, tweaking your job description can change costs. For more on how your job affects your car insurance, check out GoCompare’s guide on how to use the right job title to save costs.
Be a Better Driver and Sign Up to a BlackBox
For those of us who are unaware, Black box car insurance is when your insurance provider uses a type of telematics equipment (a method of monitoring a vehicle) – known as a black box – to keep an eye and set your premiums based on your driving habits. These equipments basically check your speed, how harshly you accelerate and brake and how carefully you drive, and also whether you are on the road at perceived dangerous times – i.e. the early hours of the morning. They can cut down premiums substantially once you start proving you are a good driver. The biggest win is for those whose premiums are high, especially young drivers. Some insurers even offer an upfront discount if you take out a telematics policy.
Black box car insurance and any type of telematics cover is generally suited to groups seen as ‘high-risk’ by insurance and may be especially beneficial for you if you are young or inexperienced driver.
Consider What Vehicle is Best for You
Cars having a smaller engine are more likely to have a low insurance therefore tend to have lower premiums as well. And just the same way, road tax on a smaller engine vehicle should also be cheaper. To explain this better, a two door smart car insurance premium would be cheaper than an SUV which comparatively has a large engine.
Every insurer will treat every sort of vehicle differently though. For example, some classic cars are very affordable to cover as insurers recognise the love that owners put into them and you may find a discount through an owners’ club.
Take a Driving Course
Advanced driving courses such as Pass Plus scheme cost money but they will get you a discount on your insurance with some companies, especially when it comes to young and inexperienced drivers. But keep in mind that not all insurance companies will take courses like these into account. Always weigh up whether the savings on insurance will outweigh the course cost or not.
Limit Your Mileage
Even though in the beginning your insurance premiums may be high, especially if your a young or inexperienced driver but you can always bring it down in time. You can do this by Limiting the number of miles you drive each year – fewer miles, lower the risk for insurers, leading to cheaper insurance.
But always give an accurate estimate of your mileage when getting a quote – your policy could be invalid if you’re not honest.
So if you are looking top bring your car insurance down and are unsure as to how you can do this, follow these steps, do your research well. Weigh your options and write down the pros and cons. Then think and decide what is the best option for you and never jump into this blindly. After all, the goal is to save as much as you possibly can!