Owning and running a car can be expensive. With car tax, MOT’s, repairs etc; the price can soon mount up; particularly if you are a young or new driver. Follow our top 10 tips for cheaper car insurance to see if that’s one area where we can help you save a little bit of cash. With a little research and planning, your pockets will surely be thankful!
1. Car security
It seems like such a simple thing, car security. But ensuring your car is fitted with working up-to-date security such as an alarm, immobiliser and possibly even steering locks etc; will completely reflect on the price of your car insurance, bringing the cost down considerably more than if it has no security at all.
2. Shop around
DON’T be tempted to just telephone an insurance company and accept their first quote. Price comparison websites are a plenty when it comes to finding great car insurance. Sites like CompareTheMarket.com, Confused.com, MoneySupermarket.com and GoCompare.com to name but a few, will all give you the chance to compare prices from 100’s of car insurance companies to ensure you get the best deal available.
3. Raise your excess
Don’t be fooled into thinking you are saving money on your car insurance by keeping your excess down to a minimum. The higher your excess is that you have to pay if your car is damaged in an accident, the cheaper your insurance will be. If you are a good, careful driver, raise the price of your excess to ensure you keep your overall premium down to as low a price as possible.
The car insurance market is extremely competitive, which is great for you, as it allows you the chance to haggle with the company offering your quote. If another company is offering the same deal for cheaper, most insurance companies will at least match that price if not better it. So haggling is a MUST when it comes to getting that great price you want!
5. Don’t spread those payments
One of the options when it comes to actually paying for our car insurance is by monthly direct debit. The best option for paying for your quote, if at all possible, is NOT to pay monthly, but instead borrow the amount due on a 0% interest credit card, paying your insurance in one large lump, ensuring you clear the credit card debt within the year. Direct debits, although convenient for some, always cost more due to the amount of interest that is applied to your quote for paying over a number of months.
6. No young drivers
Try not to add any young drivers to your policy if at all possible. Young drivers sadly will cause your insurance to rocket considerably, given their little driving experience. And whilst they are on your insurance policy, they are not earning their own ‘no claims bonus’ points, which in turn will affect their own car insurance quotes when they go it alone.
7. No Extra’s
As well as young drivers, adding extra drivers that do not necessarily drive your car often will cause your premiums to be much higher than necessary. You can insure people to drive your car just for the length of time that they need to. Example; you may want to borrow a relatives car for a week or two whilst yours is being repaired. You can be insured for just those two weeks, instead of paying extra to have people on your insurance policy the whole year round. Only add extra people to your policy when absolutely necessary.
8. Protect your no-claims bonus
As we go through our driving years, we earn our no claims bonus on our policies. Most insurance companies offer a no claims bonus protection clause for a little extra money, but it is absolutely imperative that you take advantage of this offer. If you were to lose your no claims bonus through an accident, even if it was not your fault, your following years insurance quotes would be considerably higher, often hundreds of pounds higher, than someone with a full no claims bonus – 9 years plus. For a little extra money, this can be fully protected so you never lose your no-claims bonus, regardless of whose fault the accident or claim is.
9. Choose your car according to the Insurance bracket
Sporty, high end cars will always end up costing much more than a normal family saloon type of car. Choose your car according to your pocket. Even the colour of the car can often reflect on the price of your insurance premiums. Be very careful if you change your car half way through your policy too. What may have started off as a cheap quote, can climb considerably when changing your car part way through the year. Be sure to check insurance prices for your new car BEFORE you actually buy it, to ensure you get no nasty surprises when it comes to changing over your car insurance.
10. The little black box
If you really want to bring your insurance cost down as much as possible, particularly if you are a new young driver, then Insurethebox.com is absolutely the best way to go. A little box the size of a smart-phone, is discretely placed inside your car to record how you drive. They boast on their website that they can save an average young driver up to £640 OFF the price of their insurance premium. Your good driving is recorded in real time and this in turn will reflect on the price of your car insurance policy. Better driving equals smaller insurance premiums. A fantastic cheaper option!