How to Lower Your Car Insurance Premium

With the cost of motoring speeding ahead, it’s leaving many of us stranded on the hard shoulder. One of the major costs of owning a car these days is car insurance.

Here are some top tips on how to save money when the renewal quote lands on your doormat.

Haggle with your current insurer

Don’t instantly dismiss the idea of renewing with your current insurer. Your renewal quote is unlikely to be the cheapest deal out there, but don’t be afraid to ring up and ask for a discount. The insurance market is incredibly competitive and most providers will be keen to pull out all of the stops to retain you as a customer.

Use a variety of price comparison websites

There is a common misconception that all of the price comparison engines use the same data. They don’t and they may also have negotiated different deals with insurers, so you can’t just rely on one site for a comprehensive overview of the market. Be sure to use 3 or 4 sites to ensure you get the best range of quotes. Also, don’t forget the companies which are not included on these sites, such as Aviva and Direct Line.

Car Insurance Premium

Don’t pay monthly

Don’t be tempted to take the pay monthly option. While it might seem tempting to avoid spending a large amount of cash up front, paying monthly will cost you a lot more in the long term because of high interest charges. Most insurers charge around 25% extra for the privilege of monthly payments, so if you can afford it, be sure to pay up front. If you can’t, it’s worth considering putting the payment on a credit card.

Be creative with your occupation

Insurance quotes are based on statistics, which is why accident-prone youngsters pay so much. Likewise, certain professions are statistically more likely to make claims. It pays to be creative about your occupation. A journalist, for example, may find that if they enter their profession as ‘editor’, they will receive a lower premium.

Highlight safety features

Insurers love secure cars. For instance, if your car is fitted with a tracking device or an alarm, you can usually lower your premium. Check your vehicle’s specification to see if you are eligible for discounts.

Add another driver

Adding another, more experienced driver to the policy can reduce your premium, particularly if you are a young driver. If you have more than one car in your household, it’s also worth looking at multi-car policies.

Untick the boxes

Many insurance policies come bundled with additional services that you may not need. Legal cover, for example is an extra that very few people ever have cause to use. Breakdown cover for newer vehicles and a courtesy car for infrequent drivers are also options that you can remove for a lower premium.

Increase your excess

By increasing your voluntary excess, you can reduce your premium. Unless you are involved in an accident, you’ll be quids in!

This guest blog post was by Guardian Insurers who provide military life insurance and kit insurance.

Related posts

Leave a Comment