Car insurance is increasingly expensive with premiums up by a fifth in two years.
The price comparison website MoneySuperMarket says the average policy now costs £562.
That’s a lot to keep covered on the road so we have put together a guide on how to save money.
Here’s some tips you might want to look at:
1. The obvious options are changing from fully comprehensive policies to cover such as third party
That will reduce the premium also reduce the quality of cover provided.
But it may be an option for some.
2. Insure your motor excess
That’s the amount you pay yourself in the event of a claim.
But some excesses are high, especially for younger drivers, so think about buying a separate policy to repay any excess you have to fork out.
3. Shop around
Don’t get into the habit of always accepting a renewal quote from your existing insurer.
Always – and I mean always – shop around for the cheapest quote.
4. Don’t put everyone on the policy
You can save money by insuring just yourself and the people you know will regularly drive the car.
Take off sons and daughters who have gone to university for large parts of the year.
You can always add them just for those weeks they are at home.
5. Are black boxes a way for insurers to snoop on your driving habits?
Yes, they are, but you can accept it if it means smaller bills.
Blackbox policies, where the insurer installs a system in your car to monitor your driving, reward those who drive carefully.
They check your speed, acceleration and braking, even if you are driving at what they assume dangerous times like the early hours of the morning.
6. It pays to do your homework on job titles
A survey by the website GoCompare revealed how the right description may affect premiums.
If you describe yourself as a “chef” when filling in your car insurance application your average quote is £98 higher than if you write “kitchen staff” comparison site GoCompare found – and it’s not just cooks that have this problem.
“Music teachers” pay £86 more than “teachers”, “office managers” pay more than “office administrators”, and “construction workers” pay more than “builders” who – in turn – pay more than “bricklayers”.
7. Pay in full
Not all of us can but, for those who are able, paying the full year’s premium is cheaper than spreading it our monthly or quarterly.
Insurance staff may specifically ask if you want to pay in instalments because they get more money out of you – resist the pointed question and pay in full.
8. You may be offered lots of extras – but they cost extra too
Breakdown cover, windscreens, theft from the car, a courtesy car – every extra adds to the premium.
More than that, a lot of them might already be covered by things like your travel insurance, AA membership, home insurance or even your bank account.
9. Secure your vehicle
The Association of British Insurers says companies often offer discounts for vehicles fitted with security devices such as alarms or immobilisers – your insurer can tell you which devices they approve.
Leaving your vehicle in a garage overnight, rather than out on the street or in your driveway, may also reduce the cost of your premium.
10. Finally, don’t be put off by car sharing
Many drivers give lifts to work colleagues or neighbours and, generally, accept a contribution to the cost of petrol.
The ABI say should not usually increase premiums except in very limited circumstances.
These are that you should not make a profit and the car should carry less than eight passengers.
Source : Chroniclelive