Having car insurance is essential if you have a personal vehicle, and you’ve probably found out by now how expensive it can be to keep it on the road. Add that cost on top of paying for fuel, maintenance, MOT’s and tax, it can be an expensive piece of your finances. If you’re involved in an accident however, you’ll be very glad it’s there.
It’s important to find a policy that covers all the requirements that you need for your insurance. By knowing exactly what affects your insurance rates, you can figure out how to save on your car insurance and get good coverage without breaking the bank.
However, there are things that everyone can do in order to save on your car insurance today. Here are Kompare’s top tips in order to do so.
This might not be an option that suits everyone, but if you’re able to afford it then consider paying for your car insurance annually rather than in monthly instalments. Paying it in one lump sum for the full year of cover instead of monthly direct debits usually works out cheaper as many insurers add an interest charge for direct debit payments and include that into your monthly amount.
If you can’t afford to pay it all in one go, it’s worth considering paying the instalments on a 0% credit card – just make sure that your repayments are big enough to clear within a year. If you opt to pay by credit card, check if your insurer charges a fee for doing so. The fee is usually less than the monthly interest charge, but it’s always worth double checking.
Opting for a higher voluntary excess when you take your insurance policy is a great way to reduce your premium. Voluntary excess is set by the driver and it’s combined with the compulsory excess (set by the insurer) to pay towards the repair work of your car in the event of an accident. You can set your excess to zero, but in the event of a claim this means that your insurer will pay the full amount, which will increase your insurance premium immediately.
Remember though, you must be able to afford your excess. If you need to make a claim, you’ll be required to supply your insurer with the money before your insurer pays out. If your voluntary excess is £250 and your mandatory excess is £250, you’ll pay a total of £500 in the event of a claim. Make sure you can afford this before you agree your insurance policy.
Improving your vehicle’s security could get you cheaper premiums. Vehicle crime not only poses a threat to your car, but it can also have a negative impact on your insurance. Car security is one of the categories taken into consideration when allocation vehicles to car insurance groups.
If your car is fitted with a security device, such as alarms and immobilisers will reduce the price of your car insurance. Check with your insurance company which providers they recommend before deciding on a device. On top of this, parking your car somewhere safe during the day and overnight is also a huge factor in showing to your insurer that you keep your vehicle safe. If you ae the victim of theft or damage, any claim you make will likely push your premium up at renewal. Even though it’s an added cost to get security measures in place, you’ll save money on your policy going forward.
The vehicle you drive affects your car insurance premium. Cars which have a small engine are more likely to be in a lower insurance group compared to SUV’s with larger engines. Road tax will also be cheaper on smaller engine cars. Some insurers will also offer a discount if you buy a hybrid or an alternative fuel vehicle.
However, it’s worth mentioning that different insurance providers will quote different prices for your vehicle. Even though buying the latest top-of-the-line vehicle sounds exciting, it’s definitely worth shopping around to find a vehicle that is more economical as it will save you in the long run in terms of insurance.
Adding a named driver to your policy is a quick way of getting a discount on your policy. However, the named drivers must live at the same residence and be related by blood or marriage. If the person is unrelated to you, it is possible to still get a discount, but you must jointly own the vehicle. Named drivers are usually expected to be on the policy of a young driver as adding a more experienced driver will work in their favour. The better the driving history and lower the risk, the more impact it will have on your policy.
A second driver should be someone who is likely to drive your car. It is important to mention that the policyholder should be the main driver. Naming someone else as the main driver when they’re not is a serious offense and is called ‘fronting’. This is fraud, if you’re caught then you could face a conviction and your insurance will likely be invalid.
Tweaking your job description, legitimately of course, is another quick way of lowering your premium. For example, if you don’t use your car for commuting, you might be able to find a cheaper policy by stating that you will only use your car for social use.
The way you describe your job can also affect your premium. You might find that describing yourself as a ‘chef’ as opposed to a ‘cook’ may result in paying different premiums. The same applies for calling yourself an ‘editor’ over an ‘artist’ and a ‘PA’ rather than a ‘secretary’. However, be honest about your job description otherwise you run the risk of invalidating your policy.
Telematic devices, more commonly known as a Black Box, is a mobile phone like device which is installed into your car to monitor your driving. Insurers reward those who drive carefully with lower premiums or bonus miles. This information is vital in order to get a cheaper insurance policy as insurance companies have actual evidence to how fast you drive, how aggressive you break, and whether you are on the road during dangerous times. They can cut your insurance substantially once you can prove to them you are a good driver.
As an additional bonus, the Black Box also acts as a tracker if your car gets stolen as the device uses GPS in order to monitor your driving habits. Even though Black Boxes are usually an option for younger drivers, it’s worth considering if you’re a more experienced driver as it will help you when it comes round to your renewal time.
It goes without saying but the more you drive, the more you are likely to have an accident or an emergency. By limiting the amount of miles you drive each year means you’re a lower risk for insurers (which makes you cheaper to insure). However, make sure that you give an accurate estimation of your yearly mileage when getting a quote. If you’re caught driving more than you stated, your policy could become invalid.
Keeping your No-Claims-Bonus for a considerable amount of time is one of the most effective ways of lowering your car insurance premium. Insurers reward motorists who are claim-free with discounts on their policies. Even though you start off with none, insurers will look at you kindlier as you grow with experience and aren’t involved in accidents. If you only have one year of driving experience and you end that year without a claim, that can immediately result in cheaper premiums.
Another advice we’ll give you is to shop around for your next car insurance price. If you’re disappointed by the price of your car renewal price, don’t let it auto-renew as that’s a sure-fire way to miss out on potential savings. It’s known that insurers are more likely to showcase their best deals to new customers to entice them.
Ask friends and relatives for recommendations based on their personal experiences, and make sure to do your own research on the matter before committing to anything. Find a company that’s reputable, ensure it’s someone you can trust and that you’re comfortable with the service that you’re receiving. If you do find a cheaper renewal price elsewhere, it’s worth mentioning it to your current provider to see if they can price match. Your insurer may be able to give you a discount or give you another reason to stay with them.
Keep in mind that finding the lowest price isn’t always the cheapest option. You want to check that the new policy is comparable in terms of level of cover. Paying less for a lower level of cover isn’t always a good deal. You might be paying less out of your bank account, but you’ll be paying more if you’re involved in an accident.
By searching for your next car insurance quote with Kompare, you will find quotes from the top car brokers in the UK in order to bring you the most competitive prices available to you on the market. You no longer have to go from broker to broker just to find quotes, they’re all right in front of you within seconds of completing your application. Don’t believe us? Try us out for yourself and see how much you can save.