With the cost of living continuing to rise and the average annual cost of car insurance reaching £586, many people will be looking for methods to reduce this expense.
From enhancing security to seeking rewards, the car insurance experts at Confused.com share their tips on how to get cheaper car insurance:
- Don’t accept your renewal price – Many factors affect the price of car insurance. In the last year, the cost of car insurance has risen by £36. But even if your quote hasn’t gone up, it’s always worth shopping around to see if you could save on your car insurance. You might be able to find a similar policy with another provider and slash your costs in minutes just by comparing car insurance quotes. If you happen to miss your renewal date, you could get stuck paying for a more expensive car insurance policy when your old one auto renews. But if you’re quick, you could still get out of the deal. By law car insurers have to give you a 14 day cooling-off period during which you can cancel your car insurance without penalty. By comparing car insurance quotes, you could save up to £388.
- Pay for your car insurance annually– Paying for your insurance annually (rather than monthly) is one way to get cheaper car insurance. Paying for your car insurance policy in monthly instalments might help you budget, but you pay more for the convenience. That’s because insurance companies always charge interest for spreading the cost of your cover over the year. If you can’t afford to pay for your car insurance upfront, one way to make it more manageable is to use a credit card with 0% interest on purchases. That way you still get the benefit of budgeting monthly, without added charges on top. It’s important you pay off your balance before the 0% runs out though, otherwise credit card charges will wipe out your savings.
- Be accurate with your mileage– Generally, the more miles you drive, the more likely you are to have an accident and make a claim. This means the higher your mileage, the more you pay for your car insurance. So, driving fewer miles, or not putting more than you need, can be a great way to save money on your car insurance policy. But don’t assume that a rock-bottom mileage means rock-bottom prices. If you barely drive at all, your insurance company could see that as a risk as well.
- Enhance your car security– The harder it is to steal your car, the less of a risk it is. This usually means cheaper car insurance. There are several ways you could improve your car security such as installing a Thatcham-approved car alarm or immobiliser, adding secondary levels of security and making sure you park in secure and well-lit car parks. You may also want to consider a tracker device to recover your car if it does get stolen.
- Consider a telematics or black box policy– A telematics (black box) policy calculates your insurance costs based on how, when and how much you drive. There could be some restrictions on how you use your car with a black box, though. For example, driving curfews or mileage caps. But if you drive safely and responsibly and avoid late-night driving, you may get cheaper car insurance prices.
- Consider how you use your car– Make sure your policy reflects the way you use your car. If you’re only using it to drive to the shops, you don’t need a policy that covers commuting. Likewise, if you start using your car to make deliveries on the weekend, you might need car insurance that includes business use. What class of use you go for could have an impact on the price you pay. If you only need to drive your car occasionally, you might want to think about temporary car insurance. You can insure your car for anything from an hour to 28 days and it’s quick to arrange.
- Watch out for extras you don’t need– If you want cheaper car insurance, think carefully before adding on any add-ons like breakdown cover, legal expenses cover, courtesy car, personal accident cover and windscreen cover. You may even get some of these add-ons as part of another policy, or with your bank. If you do need extras like breakdown cover, always check whether you can buy them separately as standalone products and the terms of all the policies you are considering before you buy them.
- Look for rewards and incentives– When you buy a policy, keep an eye out for rewards and incentives in addition to obtaining cheaper car insurance. For example, you may choose from 4 rewards if you purchase a car, van, or home insurance policy with com.
- Increase your voluntary excess– Your car insurance excess is what you’d have to pay out if you made a claim. You can’t change your compulsory excess, but you can change your voluntary excess. This can help you get cheaper car insurance, but you need to make sure you can afford to pay it, if you need to claim.
- Check what you can add to your policy– Your lifestyle is impacted by your job, which in turn affects how you drive. Even if you don’t drive for work, it could still have an effect. As a result, your insurance may vary based on the particular job title you use. So, it’s important to consider the most relevant variations to determine how they might affect your price. It’s also beneficial to keep in mind that sometimes including a named driver in your policy can result in lower car insurance costs. This is most often the case if the named driver is an older, more experienced driver.