Your car insurance is something that you have to pay for. However, there are plenty of things that you can do in order to reduce your bill. Here are 10 top tips to reduce the cost of your car insurance premiums.
Always shop around
Do not settle for the first quote that you find or the renewal quote of your current insurer. You can save a lot of money by comparing car insurance quotes to discover the best deal.
When you compare, make sure that you look at exactly what each policy offers; the cheapest quote may not include all the benefits you require.
Go fully comprehensive
Deciding on a comprehensive policy can be cheaper as compared to a lower level of protection like third party, theft and fir. It also offers better coverage.
This is because a number of insurers associate third party policies with high-risk drivers that are looking for the cheapest cover. As a result, many charge more for less coverage.
Pay up front
You can save money by making a single payment for your car insurance rather than splitting it into monthly payments.
When you opt to pay monthly, insurance companies will normally charge you interest, sometimes as much as 30 percent APR.
Get the right car
The car that you drive has a huge an effect on the cost of your insurance. The more expensive and powerful the car is, the higher it will cost to insure the car.
This is because the price of repairs will be higher if you encounter an accident, and insurers consider you more prone to have an accident if you drive a fast car.
Every car is assigned to a car insurance group based on the amount it costs to insure the car. Groups range from 1 to 50, and the lower the group, the lower the cost to insure the car. Look at cars that are included in group 1 for the cheapest possible cover.
You can learn more about car insurance groups, including how cars are set to each group on the Parkers website.
Get black box insurance
This is a kind of car insurance policy that connects a telematics box in your vehicle in order to track your driving.
It can suggest that you pay less if you drive safely and within the rules of the policy. This a good choice for young or new drivers since what you are required to pay is based on how you drive and not on how your insurer thinks people that are the same as your age drive.
Take a Pass Plus course
Some insurance firms will give you a discount if you have extra driving qualifications like Pass Plus.
These driving courses tell insurers that you are a safer driver, and less likely to encounter an accident. Make sure that a discount is granted before you receive a quote as not all insurers offer it.
Consider a multi-car policy
Insurers often give a discount if you and other drivers in your house share a multi-car policy.
They include all the drivers on one policy and can cost lesser than separate standalone policies, but not always.
Increase your car’s security
Making your car more secure and less at risk of vandalism or theft can mean that insurers will offer you cheaper premiums.
- Parking your car in a garage, or on your driveway, if you have one
- Fitting a Thatcham approved tracker, immobiliser, or alarm
- Getting a steering wheel lock
Even if the value of these security measures is not recovered by the possible savings, they can be worth it for the added peace of mind.
The best way to keep your premiums as low as possible in the long run is to drive cautiously and avoid making a claim on your insurance.
You can receive a No Claims Bonus for every year that you drive and not make a claim; a bonus of five or more years could offer you a discount of as much as 75 percent.
Add a named driver
It can make your cover cheaper if you include another person on your policy as a named driver.
This will work best if you can include a more experienced driver to your policy, for example, if you are a young driver including a parent with a clean licence and several years of no claims could reduce your premiums.