The insurance market is one of the most competitive and one of the most confusing… but that doesn’t mean you have to fall victim to expensive insurance premiums!
With the cost of living constantly rising, many of us have probably questioned at one point or another whether it’s affordable to own and run a car. The cost of insurance can be a huge burden on your finances – and the worst thing you could do is jump straight into buying or renewing your car insurance policy without properly considering all the options.
We have 10 secrets for keeping your insurance premium low, while keeping your coverage high – regardless of age, gender or experience.
1. Always shop around
The first rule of shopping for insurance is to never settle on the first quote you get. Compare. Compare. Compare. It’s one of the main ways to ensure you get the best deal.
However, it’s important to check what coverage each policy includes – the cheapest quote may not always be the best option.
2. Choose your car carefully
The make and model of your car can significantly affect the cost of your insurance. If you’re buying a new one, be sure to check its insurance group first if you want to save yourself money.
The rating system is from 1 to 50. The lower the number, the cheaper the car is to insure. The higher, the more expensive. This classification is based on several factors, such as the vehicle’s value, performance, safety, security and damage cost.
3. Avoid modified cars
Insurers don’t like cars that don't match their original specification. This is because it’s more expensive for them to repair if you have an accident.
The modifications that’ll cost you the most are fitting a more powerful engine, alterations to the bodywork, adjustments to the transmission, and even changes to the paintwork!
4. Think about protecting your no-claims bonus
A long no-claims bonus can cut a huge chunk off your insurance premium. The British Insurance Brokers’ Association states that a one-year no-claims bonus could save you around 30%, while a few years could see you save up to 65%. That’s why it’s so important to protect it. This might increase your premium a little, but it’s nothing in comparison to the price of losing your no-claims bonus discount.
5. Increase your voluntary excess
Voluntary excess is the amount you’re prepared to pay towards the cost of an accident. By saying you’ll pay more, you’ll lower your insurance premium – but remember to factor in the compulsory excess set by your insurer. We don’t recommend bumping up your voluntary excess too high, especially if you have a low-value car.
6. Park your car in a safe place
Parking your car in a locked garage or on your driveway is better than on the side of a road or leaving it at work. This is because you’re reducing the risk of it getting damaged or stolen – and the less risky you look to an insurer, the cheaper your insurance will be.
7. Keep your mileage as low as possible
Mathematically, you’re less likely to have an accident if you do fewer miles – so this could reduce your premium. However, it’s important to always calculate your annual mileage accurately. If you drive more than stated on your application, you could invalidate your insurance.
8. Security features
Another way to reduce risk is by ensuring your car is secure – and therefore harder to steal. Most modern models already come with alarms and immobilisers, so make sure to mention them on your insurance quote. If you have an older model, double check their features and think about having security systems fitted.
9. Get a black box
Otherwise known as a telematics box, it monitors your driving style and performance, and reports this information back to your insurer. From this, they’ll decide what type of driver you are – and this could affect your insurance premium either positively or negatively.
Warning signs are usually braking sharply, speeding, late-night driving and high mileage.
10. Take an advanced motoring course
For new drivers, the Pass Plus course is a good option if you’re looking to increase your experience and lower your premium. The training covers how to drive safely at night, on motorways and in all weathers.
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