Save Money on Your Car Insurance
Car insurance can be one of the most expensive costs associated with motoring.
Whether you intend to lease a car or buy one, you will need to factor in the cost of car insurance into your annual motoring budget. But don’t worry – there are several steps you can take to lower the cost of your car insurance.
Check out our tips below to find out how to save money on your car insurance UK.
Shop around – and don’t be afraid to barter
You’ve just received your annual car insurance renewal. Are you the type of person who simply accepts the quote, allowing it to automatically renew? If so, now is the time to change your ways.
Put in a bit of leg work, and you could save some money. And that doesn’t necessarily mean handing over all your personal details to annoying opera singers or cute little meerkats...
Sure, it’s always worth having a look at the comparison websites. But it’s equally important to apply for a few direct quotes in order to make sure you’re getting the best deal.
Can you negotiate with your car insurance company? Probably. If you’re happy with your current insurer, why not give them a call to discuss your renewal quote?
Haggling might mean you can get a lower premium and stay insured with a company you are familiar with. Win, win.
Double-check your cover type
If your car is worth more than about £500, you would be wise to opt for fully comprehensive car insurance.
Fully comprehensive cover is more expensive – but choosing third-party cover will only insure against repair or replacement costs for other vehicles or objects involved in an accident. This is an excellent example of ‘you get what you pay for’.
More than one car on the driveway? Look at multi-car insurance policies. Young drivers living with their parents can often make big savings while building up their own no claims bonus for the future.
Get a black box
Many insurers offer discounts to drivers who have a black box system installed.
While you might not love the idea of a gadget watching your every move, they are a good option if you want to save money.
If you’re a young or inexperienced driver, installing a black box can be the easiest way to lower your insurance premium – and some insurers will insist you have one if you’re under a certain age. They can be installed in lease cars too.
Pick the right car
In general, the more powerful the engine, the higher the cost of your insurance. Likewise, the higher the value of the car, the more you will have to shell out on insurance.
So, if you’re thinking about car insurance costs before choosing your new car, a compact hatchback will cost less to insure than a flashy sports car.
Install vehicle security measures
Is your car fitted with an immobiliser or alarm? Research whether the extra cost of installing these would be worth it for the savings you might make on your insurance.
Look at paying for add-ons separately
Many insurers offer add-on products like courtesy cars, personal accident and windscreen cover.
But it may work out cheaper to purchase these separately, rather than just taking the combined price you’re offered. Always do your maths to calculate the cheapest way to get the cover you need at the right price.
If you choose to pay monthly for your car insurance, you’ll be taking out a loan with interest added.
But what if you can’t afford to take the hit of paying for it in one go? Look into putting it onto a 0% credit card and make the minimum monthly repayments instead.
Double-check your details
Insurers want to know everything about you - from your date of birth and how long you’ve been driving to how much you drive and where your car is kept overnight.
Being honest goes without saying – and your policy could be deemed invalid if you’re not truthful.
But it’s worth making sure all of this information is correct. For example, your annual mileage will have an impact on the cost of your insurance.
In most cases, if your annual mileage is low, you’ll be seen as a lower risk to insurers – meaning your cover will be cheaper. If 2020 has left you commuting less or making fewer long journeys to see friends and family, it’s worth updating your annual mileage to reflect this.
The same applies if you’re working from home permanently. Tell your insurer – the cost of your insurance cover might be reduced if your vehicle is parked on the driveway at home all day instead of in a busy city car park.
We hope these tips help you to cut your car insurance costs and land a better deal. If you want to ensure you’ve got a car that’s going to help lower your premiums, take a look at our collection of low insurance lease cars.
Leave a comment for your chance to win £20 of High Street Vouchers. Each month we pick our favourite comment from the previous month - get involved for your chance to win...
The comments above do not necessarily reflect Rivervale's views unless clearly stated.