Having good car insurance is both wise and prudent, but there is no doubt that it raises driving costs. The good news is that insurance can range from hundreds to thousands of pounds, depending on various factors. We will give you our top tips to save money on your car insurance!

Shop Around

meet friends

You should get about three quotes from different insurance companies and insurance types, including those that sell through their agencies, those that sell through independent agents, and those that sell directly to consumers over the phone, an app, or the Internet. Ask your family and friends for recommendations based on their own experiences, and do your research on the company before committing.

If you can demonstrate that you have found more competitive rates somewhere else, you may be shocked at how flexible your current insurer’s initial quote is.

Consider Extra Costs

extra cost

When comparing car insurance, look to see if extras like a courtesy car cover, legal cover, and windscreen cover will be included as standard or if you must purchase these extra costs separately.

In most cases, you’ll have to pay for any of these extras, so think about whether you need them or if you could do without. The key is to avoid feeling compelled to add the coverage you don’t require. You may also discover that it is less expensive to go elsewhere for some of your extras; even if you have to pay twice, the total amount may still be less than if you had gone all-in with one insurer.

Pay Annually

Annual car insurance payments

Annual car insurance payments are usually less expensive than monthly payments. Paying annually is usually cheaper because when you pay monthly, your insurer essentially lends you the funds to pay for your insurance, and interest is added to your payments.

If you can’t afford to pay for your car insurance in one single payment, you might want to consider a 0% purchase credit card. A 0% credit card will help spread the expense of your repayments over several months interest-free. It’s best to keep this to a maximum of 12 months, so your insurance payments for this year don’t overlap with those for next year.

Millage

Most insurance companies need you to estimate your yearly mileage to calculate your fee, so consider how frequently you drive your car. Overestimating your annual mileage will result in you paying too much while underestimating will result in your policy being invalidated if you have an accident and have not yet increased it with your insurer.

Add an Experienced Driver

Experienced Driver

Introducing an older, more experienced driver to your policy could also lower premiums. But, again, this is due to your insurer assuming that you will share driving commitments and spend less time on the road.

However, make sure that the person listed as the primary driver is the one who drives the vehicle the most. For example, if you designate a more experienced driver as the primary driver to reduce costs, but you do most of the driving, you will engage in an illegal practise known as ‘fronting.’

Add a Black Box

crach recorder, black box

If you’re lucky enough to be under 25, the cheapest policies may include a black box gadget. If you’re confident in your driving abilities, a black box could be the solution to your car insurance savings prayers!

These tiny devices are installed in your car to collect data ranging from the number of miles driven to the time of day the car is driven, your location, and even your driving style. In addition, some car insurance companies are switching to app-based trackers, which means your mobile will perform the functions of the black box and send the data to your policy provider.

Secure Your Vehicle

Investing in devices that will improve your vehicle’s safety can help you get cheaper car insurance. For example, installing an approved alarm, dash cams, immobiliser, or tracking device in your vehicle can result in up to 5% discounts. A popular issue is that people will have some devices installed but forget to declare them, resulting in a loss of the discount.

Check Your Cover

claims on third-party policies

You’ve been given out-of-date information if you’ve heard that third-party insurance is less expensive than fully comprehensive insurance. While third-party insurance used to be the cheapest option, insurers noticed a trend of young or new drivers opting for third-party only, which increased claims on third-party policies, pushing prices up. As a result, third-party only policies have become the most expensive option, while fully comprehensive policies are frequently the cheapest.

Consider Your Car

Generally, a smaller engine equals a lower insurance quote, though this isn’t always the case. Much of your quote will be based on the insurance group that your vehicle falls into, and you can learn how to determine your vehicle’s insurance group here.

However, there are always exceptions to the rule. While a supermini will have a lower insurance premium than a sporty SUV, a beloved classic may also be quite affordable, as an expensive car will convince insurers that the car will be cared for in the safest way possible.

Be Early

calendar

You can buy car insurance up to 29 days before the start of your policy, and you can lock in your quote the moment you say yes, even if you’re four weeks away from the start date. However, according to research, the longer you wait to purchase your insurance, the more you can expect to pay, with one well-known price comparison website claiming that if customers bought the policy 26 days early, they could save 40% on their premium compared to those renewing on the day.

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