10 Easy Ways to Reduce the Costs of Your Car Insurance

Car insurance is an essential expense – you can’t legally drive a car on the road without cover. Despite this, not enough drivers make an effort to ensure they’re paying the cheapest car insurance they can.

Multiple factors determine your insurance costs, and you can use these to help you save money on your car insurance.

Try out these ten things to reduce the cost of your car insurance.

1. Choose the right car

The car you drive may play a big part in the amount you have to pay for your insurance policy. If you’re a new driver getting your first car or are in a position to change your vehicle, it’s best to avoid large and bigger engine models. These will cost more to insure than a basic, smaller car.

Exotic and premium cars are likely to also cost more to insure, and this is because these cars are more expensive to get replacement parts for repairs. These cars are also more attractive to thieves and vandals and are more likely to get into high-speed crashes, contributing to more expensive insurance costs.

Older, second-hand cars can also be more expensive to insure because they’re more likely to break down.

When getting a new car, always factor in how much it will cost to insure because it could show that a smaller, less powerful option may be cheaper for you in the long run.

2. Drive fewer miles

Insurance providers subscribe to the rule that the more you drive, the more likely you are to have an accident. This means to save money on your insurance costs, you should commit to driving less.

When getting a car insurance quote, you’ll need to provide your mileage. The less mileage, the lower your insurance. It’s important not to lie about your mileage when getting car insurance. This is because if you make a claim and your actual mileage doesn’t match up, you may not get a payout.

Instead, work hard to reduce the amount you drive for a year, and when you come to renew your insurance, you’ll likely get a reduced rate.

To drive less, you can cycle or walk for short-distance trips or rely on public transport. If you’re driving to work, try to find other means to get there. This is because you’re travelling at busy, peak times where accidents are most likely. Not travelling by car for work can reduce your insurance by a lot.

3. Get black box insurance

A black box policy is a great way to save on your car insurance, especially if you’re a new driver. With this kind of policy, your insurer will install a GPS device that can be used to monitor your driving.

This encourages the driver to be safer while driving and makes it easy to track your car if it is stolen. Data from your black box will set your premium. If you work hard to drive at a reasonable speed, break softly, and drive at the best times, you’ll be able to reduce your premium.

4. Be smart with your job title

When you apply for insurance, you’ll need to disclose your job title to your provider. This is because some jobs are considered higher risk than others.

When adding in your job role, you need to be truthful and ensure it reflects what you do. However, small differences can alter the premium you’re offered.

For example, despite being pretty similar, a chef and cook may be charged different insurance premiums. Investigate the quotes offered with the various job titles that describe your role to find the cheapest option.

5. Add a named driver

If you’re a new driver, under 25 years old, or have previously had a claim, you’ll be placed into the high-risk group of drivers, which will increase your premiums.

If there’s another driver who’s likely to be using your car in addition to you (such as a parent or a partner), it may be worth making them a named driver on your policy if they’re not in this high-risk category. Doing so may be able to reduce your car insurance costs.

6. Pay for your car insurance upfront

When you pay for car insurance on a monthly basis, you’ll likely be charged a considerable about of interest. By paying for your insurance in one lump sum at the start of your policy, you will be paying less in total.

Although it may be tough to pay this large lump sum at once for many, if you’re in a position to do so, it can considerably reduce your premium by up to 20%.

7. Get the right type of insurance

There are three main types of insurance: full comprehensive insurance, third party, fire and theft, and third party on its own.

Many people think getting third party will be the cheapest insurance because it offers the least amount of cover, although this isn’t always true. In fact, comprehensive cover is often the most affordable option because those with third party, fire and theft insurance are statistically most likely to get into an accident.

Despite being a bit counterintuitive, the policy that covers the most can often be cheaper, so be sure to check before you commit.

8. Take a Pass Plus course

If you’re a new driver who’s recently passed your test, you have the option of taking a Pass Plus course. This is an additional 6-hour course designed to make you an even safer driver and costs between £30-£35 an hour on average.

Some insurance providers may offer you a cheaper premium if there’s evidence you’ve completed these courses, which could help make insurance more affordable for first-time drivers. The reason for this is that most claims happen in the first 12 months of a new driver hitting the road. Doing this course should reduce those chances.

Be aware not all insurance providers offer discounts for drivers who completed a Pass Plus course.

9. Avoid car modifications

Modifying your car either cosmetically or performance-wise can result in a higher interest rate. If a vehicle with modifications gets damaged, it can be harder to find replacement parts, making it more expensive.

Plus, on average, drivers with modifications are more likely to get into accidents, another reason why insurance is more.

10. Compare car insruance

One of the best ways to reduce your car insurance is to spend time gathering quotes and comparing them from providers.

Too many drivers simply renew their insurance with their current provider as they want to avoid the hassle. However, it’s easy to compare car insurance these days and doing so can save you a lot of money.