Keep the cost of your car insurance down with these top tips.
Driving is an integral part of daily life and the majority of households have at least one car. Many people find it hard to imagine life without a motor – then the renewal quote pops up in your inbox…
The cost of car insurance has steadily risen 9% over the last few years making the average annual cost of a policy £471 in 2018. But don't worry, if you know the tricks of the trade you could save yourself hundreds of pounds, and we're here to help.
Do your homework
Many of us simply allow our car insurance to auto-renew without a second thought just because it’s convenient, but shopping around can really save you big money.
Price comparison sites are a great way to compare like-for-like quotes to get the best deal – remember, cheapest doesn’t always mean the best value. Also, don’t be afraid to use multiple comparison sites in your search, as they can offer varying quotes for the same providers and policies.
Top tip: If there’s more than one vehicle in your household, see whether it’s worth getting multi-car insurance.
Choose an affordably higher excess
The excess is the amount you have to pay towards the cost of a claim. Choosing to pay more than the bare minimum in the event of an accident generally reduces the cost of your cover.
Of course, this does mean that if you do have an accident, you’ll have to pay that more, so make sure you can afford to.
Get a dash cam
Dash cams are an efficient way for insurance companies to quickly and accurately establish the fault of claims made and the footage acts as an independent witness to back it up. Some insurers are now offering discounts to customers who have a dash cam installed in their vehicle.
In addition to slashing your premium, they can also protect your no claims bonus in the case of a claim.
Top tip: Swiftcover and SureThing! are currently offering discounts for drivers with a dash cam fitted.
Consider telematics insurance
Having a black box installed in your car might not be something you’ve considered but almost 100k drivers in the UK now have a black box fitted. Originally they were aimed at young or new drivers to help reduce the cost of pricey premiums, however, more experienced drivers are finding that they can also make big savings this way.
There are even more benefits than just saving £££’s as these boxes can double as a tracker in case of theft and some even include an accident alert feature which contacts emergency services if an impact is detected – handy eh?
Track your car
Owning a higher end car usually leads to higher premiums so having a tracker installed could help keep your cost low.
In the event of theft, if the car is successfully recovered this allows insurers to recover some of the cost of the claim, meaning they pay out less, so these savings are passed on to you.
Before purchasing a tracker, do your homework to see how much the tracker and monthly subscription is to ensure there is a cost saving.
Don’t pay monthly
As tempting as it is to spread the cost over the year than one upfront cost, you’ll actually end up paying more. Nearly all insurance companies will charge you interest for monthly payments as you are technically opting into a credit agreement.
If paying upfront is not an option but you still want to save money, consider using a 0% interest credit card to spread the cost – just be sure to clear your balance before the offer expires.
If you’re looking to get your hands on a new motor, check out our low-cost car loans from just 3.2% APR Representative between £7,500 and £25,000.
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