No one likes to fork out a lot of money on car insurance, particularly if they’re not earning a high amount of money, but it is something that is essential for all drivers. Car insurance protects you against theft and accidental damage and will protect other road users if you cause damage to their vehicle. The cost of your insurance is based on how much of a risk you’re perceived to be on the road, but if you can prove you are a competent driver by keeping your car damage-free and storing it safely, you could pay much less. Here are a few more tips to consider that will help you save money on your car insurance.
Go for a no frills policy
Car insurance companies often try to sell you additional add-ons that can hike up the price of your overall cost. These can include things such as windscreen cover, breakdown cover and a courtesy car and sometimes companies will offer these for free initially, but then expect you to pay for them at a later date. Some of these add-ons may already be included in your policy so make sure to read the terms and conditions very carefully.
Increase voluntary excess
If you agree to pay more upfront to cover the cost of any accidental damage, you won’t have to dig deeper into your pockets at a later date. In an accident, if it is not your fault, the excess can be recovered. If you have a lower value car, make sure your excess doesn’t get too high. Many people find that claiming for less than £500 of damage will increase the future cost of your insurance which isn’t always worth it.
Temporary car insurance
For someone who doesn’t use their car every day, or if they’re borrowing a car for a short time from a family member, temporary car insurance could be the best option. Rather than committing to a one-year policy, drivers can opt to take out a temporary one for anywhere from 1 to 28 days, and this can sometimes cost as little as £10 per day. A temporary car insurance broker such as Call Wiser can give you a great deal on short term cover whether you want to use a vehicle for business, a holiday or if you’re helping a learner driver.
Watch your mileage
This tip is simple: reduced mileage equals greater savings. You need to make sure that you’re honest about the amount of mileage you do, however, as an inaccurate figure can jeopardise a future insurance claim.
Add a responsible driver to your policy
Contrary to popular belief, adding another driver to your policy doesn’t always mean the price will increase. You need to remember that car insurance is all about risk. Therefore, if a driver considered high-risk adds one considered a low-risk to their policy, it can bring down the average cost. This works particularly for young drivers who have only just passed their test. Your second driver should be someone who you know will drive your car responsibly and you should never add someone as the main driver when they’re not. This is considered fraudulent, and you could face a criminal conviction. Adding different people to your policy is all about trial and error so try out a few options before you settle.
Shop around for the best deal
Options are important when it comes to anything so why wouldn’t you spend time shopping around for car insurance too? Don’t always assume that third-party cover is the cheapest because it is the lesser cover. With some insurance companies, the mere fact that you’ve chosen the comprehensive option could mean you’ll be assessed at a lower-risk thus making your policy cheaper. There are plenty of comparison sites out there that allow you to compare different deals depending on what you’re looking for and for how long.
Don’t auto-renew
Yes, it’s easy to choose an insurance policy and then forget about it for some time, but auto-renewing is usually more expensive than changing your policy completely. Companies increase their prices every year because they know that policyholders will forget about their renewal date until it’s too late. Make a note of when your renewal is due and when the time is approaching, shop around for a cheaper deal. There’s also nothing to stop you negotiating with your current insurance company to try and keep the price as it is or even decrease it. You can also switch mid-year if you haven’t claimed anything on your current policy. In this case, companies will give you a refund for the rest of the year that you can put toward a new deal. When it comes to car insurance, loyalty is not always the best option.
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