Car insurance prices have risen by an average of 20% in the last year so we could all do with a discount or two right now.
With the cost of living soaring and household bills continuing to rise, many are feeling the pinch and are looking for ways to save money where they can. If you are keen to cut the cost of your car insurance you can still find great deals by shopping around. Applying these helpful tips will also help keep your premium down.
1. Compare different car insurance quotes
Third party car insurance offers the most basic level of cover, but it’s not always the cheapest option. Car insurance prices depend on each person’s circumstances.
You should compare the prices for the three main types of car insurance: third party, third party fire and theft and comprehensive to see how each affects your premium.
2. Reduce annual mileage
As well as saving on fuel, If can you limit the amount of time you’re on theroad, your insurance provider may consider you a lower risk and reduce your premium. Your insurance provider will always ask how many miles you drive on average, this is one of the main factors used to calculate your insurance premium.
Set your mileage as low as you can, but be realistic. if you make a claim and your insurance provider discovers your estimate wasn’t accurate, they may decide not to pay out.
3. Pay in one lump sum
Your policy provider should offer you the choice to pay up-front for the whole year, or in monthly instalments. If you can afford to pay your annual premium in one go, you could save money. While paying monthly can help spread the cost of your car insurance, you’ll likely be charged interest for every instalment, so it ends up more expensive overall.
4. Increase your voluntary excess
All car insurance policies have an excess, which is the amount you’ll have to pay if you make a claim. Choosing to pay a higher voluntary excess, could bring down the cost of your premium. The tricky bit is that this could cost you more if you make a claim, as you’ll have to pay this higher voluntary excess as well as the compulsory excess set by the insurance provider.
5. Don’t pay for cover you don’t need
Some policies offer additional benefits, such as a courtesy car, windscreen cover, breakdown cover and motor legal protection but these don’t come free. These extras almost certainly increase your premium. Removing them from your policy could save you money in the short-term.
6. Improve your cars security
Most of us associate a car insurance claim with accidents, but don’t forget about theft. Ftting an industry-approved alarm, immobiliser or tracker might help to cut the cost of your car insurance. You may need to speak to your
insurance provider directly to get any saving reflected in your premium. Just make sure to check that buying and fitting your choice of alarm or immobiliser doesn’t override any potential savings first.
7. Undertake an advanced driving course
If you’re a new driver, an advanced driving course like Pass Plus can help boost your confidence on the road, and might even get you a discount on your car insurance. Check with your provider first to see if an advanced course would make a difference to the cost of your premium.
8. Don’t renew at the last minute
The closer you get to your renewal date, the more expensive your cover can be. The best time to find a cheaper deal and ‘lock in’ a quote is around three weeks before your new policy is due to start. Buy your insurance in advance for a bigger discount.
9. Beware of your insurance auto renewing
If you do leave your renewal to the last minute then be mindful, of auto renew. Whilst New Financial Conduct Authority rules mean that insurance providers can no longer quote existing customers a higher premium for renewing their car insurance than they would pay if they were a new customer it doesn’t mean your auto-renewal quote is the best deal out there
10. Add a named driver (or two) to your policy
If you’re a new driver and you share your car with a more experienced driver, you could cut the cost of your premium by adding them to your insurance policy.
Even adding a second driver with a low-risk occupation could reduce your premium. It’s illegal to say the other person is the main driver of the car if that isn’t actually the case. This is known as fronting and is insurance fraud, which would invalidate your insurance policy but could also lead to a criminalb conviction.
11. Think about how you describe your occupation
Certain jobs are considered higher risk than others by insurance providers. You may find that several job titles legitimately describe your occupation fairly, and that some help to give you a cheaper quote than others. For example, a freelance writer might be cheaper than a journalist.
But while you can select a job title that could result in a cheaper premium it must still be a job title that accurately describes what you do. If it doesn’t, you could invalidate your insurance or even be prosecuted for insurance
fraud.
12. Avoid penalty points on your licence
Safer drivers get better deals on their car insurance. If you have a clean licence with no penalty points, you should avoid increases to your car insurance premium.
If you are unfortunate enough to receive a speeding ticket then consider taking a speed awareness course. Not only will you avoid any points on your licence but become a better driver too.
WE ARE HERE TO HELP
As well as saving on the cost of your Insurance why not save on the cost of your next car too by buying from a trade source.
You can access trade only auctions and trade buying sites and take the guess work out of buying a used car by using the services of a professional car buyer.
Professionals get that title for a reason; they know exactly what they’re doing and how to negotiate a good deal. As the public doesn’t have access to most auction houses, they aren’t getting a good perception of just how many cars are available at such cheap prices.
You can browse a complete collection of vehicles when buying a car at auction, working with your professional car buyer to draft up a list of vehicles to bid on.
We can attend a range of car auctions across the country to find the very best vehicle and price that suits your needs perfectly. To find out more, or to express your interest in buying from an auction site, please give us a call on 0121 7691729 or 07999 728009. Alternatively, you can fill out our online form here.
